Question

demonetization and its impact ASL topic

Answer 1

                                           Demonetization and Its Impact

Good morning everyone present here. Distinguished guests, respected teachers, and my dear fellow students, I stand here to express my views on 'PM Narendra Modi's decision of banning 500&1000 notes. ‘This move of the PM is being hailed as significant and important an event as was Mahatma Gandhi’s movements against the British. He did it for the political freedom of the country; PM Modi did it for the economic freedom of the poor and underprivileged people of our country.

It is not the first time currency is being changed. It has happened earlier also. Demonetization was implemented first in 1946, in 1956, and in 1978 also. The purpose behind previous demonetization reforms were the same as is now—curbing counterfeit money and black money. 

This crusade against the black money has been welcomed by the masses. However, there is furor of protests, complaints, and resistance to the move from those who have been hit hard, especially the corrupt politicians, businessmen, etc. PM Modi’s banning the notes aims at ferreting out billions of rupees stashed away in hard cash by some unscrupulous anti-national people such as criminals, terrorists, drug-smugglers, gamblers, corrupt politicians and officers, and businessmen.

It has been reported that India is on top of the list of countries that have kept their black money in Swiss Banks. India with $1,456 billion or $1.4 trillion has more money in Swiss banks than the rest of the world combined. So you can imagine the extent of black money problem in our country. Similarly, within the nation the amount of hidden black money in the form of 500 and 1000 rupees notes is equally staggering. If the same amount is brought back to our country, our economy will flourish fast. PM Modi’s intention behind the move is purely to break the back of those people who have the black money or are involved in black money activities. Secondly, some anti-national agencies are using this black money and fake money to destabilize India. Pakistan and China are directly involved in these activities. PM Modi’s move aims at disrupting their anti-India activities by banning these notes, as it has been confirmed, these anti-India agencies use fake 500 and 1000 rupees notes by printing them.

I just wonder at some political parties in opposition who are unnecessarily making such a mountain out of a molehill. The PM has taken this step keeping the country’s prosperity and security in mind. Undoubtedly, there will be some inconvenience for some days. Such politicians as are trying to take undue advantage of the situation must be ashamed of themselves. Besides, the poor, the mediocre sections of India have welcomed this decision of the PM. In the long run this move is going to benefit the nation. There will be less corruption; more investment; better infrastructure; and general improvement in everything. To boost the efficacy of demonetization drive, the Indian Government is also trying to make all transactions cashless through traceable means, which will help in controlling illegal money laundering that is used in antinational activities. I strongly endorse the PM’s decision.   

Answer 2

Demonetization is known as government act, by which certain notes cease to be 'legal tender' which means they cannot be used as money to carry our transactions and new notes are usually issued which can be replaced within a certain period of time.

Demonetization has taken place in various time in History, e.g. the various former soviet states which issued new currency to replace Soviet Rubble,  or more recently European countries which adopted the Euro.

The most popular recent example of the demonetization happened in India,   also known as the 2016 Indian Bank Note Demonetization.
It took place under the Modi Government as a surprise move on the 8th day of November 2016 when specific notes such of Rs.500 and Rs.1,000 were announced to be replaced by new notes.

There were no warning given to the public and not even members of the parliament and the government stated that the move was made to 'clear out black money being hoarded in people under their beds'

While many lauded the Prime Minister for making such a move, it has actually had little impact on the rich.
The age old belief that people somehow hoard crores of rs. under their beds is a fantasy. Criminals and illegal tax evaded money is actually sitting in bank accounts in Dubai, London and Switzerland and hence the biggest impact was felt by the poor of the country who had actually saved money to marry of their daughter, send their children for studies and villagers who had saved money for their next drop.

The sudden nature of demonetization, almost brought the country to it's knees since Rs.500 and Rs.1000 notes accounted for 86% of all transactions carried out in the country.

IMF actually said the country won't be able to achieve it's GDP growth target for the year, while across the country, you could see strikes and people waiting in ATMs and Banks to change their money.

The situation worsened since, the government did not actually have enough notes to replace the old ones.

According to Mr. Modi, the move would be a great success in the long run but many prominent politicians and economists came out against the move include the former prime minister Manmohan Sign and Noble price winning Indian Economist, Amartya Sen, who called it a 'despotic action'