Essay on demonetisation on 200 words
Answers
Demonetization means to devalue or remove some currency notes from circulation (usually in a nation). On 8th November 2014 Prime Minister Sri Narendra Modi declared demonetization of then high valued notes Rs 1000 and Rs 500. New notes of Rs 2000 and Rs 500 were introduced to replace them. The declaration was done in the night and was with immediate effect.
Points in favour of demonetization (especially that on 8th Nov 2016)
1. Eliminated a lot of black money not accounted
for and for which tax is not paid.
2. Brought money into circulation.
3. Eliminated fake notes coming from Pakistan and other neighbouring countries
like Bangladesh.
4. Stopped funding of terrorist activities.
5. Increased online transactions and accounted for legal transactions.
6. Caught a lot of black money holders and proceeding against them.
7. Many people are brought in the tax bracket.
8. It caused a lot of stir in the nation and abroad. A lot of study regarding
the economic situation in India has been done.
9. Government worked for the betterment of the situation.
10. Demonetization has raised the awareness of people on various important
issues that are troubling the nation. Young persons are also aware of economics
now.
11. Government and the banks have learnt the correct process to introduce
demonetization in future. They realize their mistakes and unpreparedness in the
process.
12. Corruption is reduced.
13. People have realized the importance of
smaller notes. Even small merchants and retailers have started using
digital transactions. A lot of digital payment machines are sold. A lot of
software and hardware companies have benefited.
14. Salary payments became routed through the
banks and accounts.
Some
demerits:
For about 4 months many troubles arose.
1. Many small companies and self
financed companies have closed.
2. Caused a lot of trouble to
people who did not have currency at home.
3. Banks had a lot of trouble
working with less staff and ATMs not working.
4. Some sick people died waiting in
queues or not having sufficient resources.
5. There were a lot of political
stirs. Parliament and some assemblies had wasted a lot of their valuable time
due to protests.
6. State governments had difficulty
in executing their planned activities .
Demonetization:
Demonetization will help the government to keep track of the black money and unreported cash flows and the amount collected through taxes can be better used for social welfare and development programmes.
Demonetization aimed at halting the parallel economy as a result of the spread of false currency as a ban on 500 and 1000 Rs. As far as real estate sales are concerned, the secondary market was clearly very susceptible to demonetization compared to the main market.
Initiatives such as the renunciation of Housing loans, government pressure on affordable Housing through “Pradhan Mantri Awaz Yojana” and the mission of "Housing for all by 2022" have come to the forefront over the last year.