Question

demonization in india note​

Answer 1

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In 2016, The Indian Government announced demonetization of 500 and 1000 Rupee note. It affected almost all economic, political and social factor of the country.

Although this is not the first time that demonetization took place. It has been done earlier in the year 1946 and 1978.

This crusade against black money has been cheered by the masses.

Positive Effects of Demonetization

1. It has helped the government to track black money which has not been counted at all.
2. A big part of the funding for anti-social activities were restricted. Demonetization act as countermeasures against all these activities.
3. It has helped in putting end on this circle of illegal activities of people regarding money.
4. Government will now get more of tax from tax payer as they honestly deposit their money in bank account.
5. Indian economy now emerging as cashless economy.

Negative Effects of Demonetization

1. The biggest disadvantages of this scenario is the chaos and frenzy it created among common people.
2. Insufficient supply of new notes is a big concern during this time as everyone is waiting for the new currency to be swap against old.
3. In rural area people struggled for the withdrawal and exchange of cash due to lack of banking facilities and ATMs.

Answer 2

Answer:

The Prime minister of India Narendra Modi claimed that the action would curtail the shadow economy and reduce the use of illicit and counterfeit cash to fund illegal activity and terrorism.

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2016 Indian banknote demonetisation.

Queues outside a bank to exchange demonetised banknotes in Kolkata on 10 November 2016

Date 8 November 2016

Location India