Question

demonetization for asl topic

Answer 1

When PM Modi announced that Rs with the denomination of 500/- and 1000/- would cease to be the legal tender from 9th of Nov, the whole country was stunned. This decision caused sensation in the whole country. Social Media was flooded with messages and information. People started counting the trash they had accumulated for years legally or illegally.

Rumours became rife. Some tried to invest their dying currency in gold. Some contacted their near and dear ones in this miserable hour. People could get only Rs 4000/ of old denomination exchanged with the new one. Big queues before the banks and ATMs became the order of the day.

Instead of getting shorter, these queues were getting longer with every passing day. The last date for the whole process was 30th of December. The persons could deposit the old cash worth Rs 2.5 lac till the said date.

The main objective of this move was to curb the black money, corruption and fake money menace. All the people but those who were indulged in malpractices welcomed the move. The whole opposition shook hand against this move under one pretence or the other. They called this decision a draconian law and wanted the govt to roll back it. Tirades were made to target the decision. Govt also carried out counter attacks.

The new currency which replaced the old one is of denomination of 500/- and 2000/-. Though the people faced a lot of inconvenience owing to shortage of funds, they did not criticize the govt for the move. Even they lauded the Modi govt for this big move. Prime Minister also addressed the people many times telling the people that it was a mahayajna (महायज्ञ  ) and they must offer their own ahuti ( आहुति )  in it.

He further said he was aware the hardships they were suffering from but he sought only 50 days for setting the things right. He jibed at the chief political leaders who have stashed big amount of money and now joined hand to force govt to take the decision back.

The most interesting thing regarding the demonetisation is that people are devising various unique methods for transforming their black money in to white one. Some of these methods are as follows –

Depositing money in the accounts of their poor relatives and friends.Enticing the people with some percentage of money for exchange.Asking their employees to stand in the long queues in front of Banks and ATMs for getting money exchanged.Hiring labors for some Rupees ranging from  Rs 500/- to 700/- for becoming the part of long queues in front of banks/ ATMs.Converting black money in to gold.Paying a few months salaries in advance.Paying back loans forcibly.Using their influence / links with bank employees and so on.Impact of Demonetization on Indian Society/ Economy –

We shall see a great impact of this move of the Central Govt on Indian Society and Economy. The first impact shall be that people will have lower expenditure power. With that they will not be able to purchase luxurious things.

There shall be no ostentatious expenditures on marriages and other ceremonies. So the society will grow lesser materialistic and people more prudent. With the fake money destroyed, Indian economy will see a big boom and the so far booming real estate sector shall fall on the ground.

The things shall be cheaper. Indian Currency shall get respect at the international market. There shall be a great check on the terror-related funding and therefore on terrorist activities. Corruption shall be down to a great extent as people will stop the tendency of accumulating money using wrong means.

It will abridge the gap between the haves and the have-nots. However, there may be some difficulties for a couple of months. But this inconvenience shall be temporary and for short-term.

Answer 2

1)Black Money

Black money stored in the form of Rs 500 and Rs 1000 notes will be taken out of our system. As predicted by ICICI Securities Primary Dealership the government's plan to scrap ₹500 and ₹1,000 notes will uncover up to ₹4.6 lakh crore in black money.

2) Terror funding

Fake Indian Currency Notes (FICN) network will be dismantled by the demonetisation measures.Taking out 500 and 1000 rupee notes out of circulation will have a lasting impact on the syndicates producing FICN's, thus affecting the funding of terror networks in Jammu and Kashmir, North-eastern states and Naxalite hit states.

3)Real estate may see significant course correction

The demonetization decision is expected to have far reaching effects on real estate.Resale transactions in the real estate sector often have a significant cash component as it reduces incidence of capital gains tax.Black money was responsible for sharp appreciation of properties in metros; real estate prices may now see a sharp drop.

4)Political parties in crisis ahead of polls

With nearly five state elections in 2017, demonetization has stunned political parties.Especially, in large states like Punjab and Uttar Pradesh, cash donations are a huge part of "election management".In one stroke, big parties will find themselves hamstrung as cash hoards are often undeclared money.Parties will have to completely rejig campaign strategies in light of expected cash crunch.

5)Moving towards digital payments

Demonetization will likely result in people adopting virtual wallets such as Paytm, Ola Money etc.: This behavioural change could be a game changer for India.

6)Temporary chaos and confusion

Public will face minor problem for a few days owing to the scarcity of lower denomination notes in the system.