short notes on demonetisation
Answers
Answered by
2
Demonetisation (alternate spelling: demonetization) means withdrawing or stopping a currency denomination of its status as a legal tender.
Demonetisation refers, therefore, to the process of deciding that certain coins and banknotes can no longer be exchanged for goods and services.
The process of demonetisation takes the symbolic meaning and power away from a given type of currency.
In India, it was announced on 8th November, 2016 that the Rs. 500 and Rs. 1000 banknotes would cease to qualify as valid tender from 9th November, 2016 onward. (Source: wikipedia )
Why is demonetisation used? Demonetisation is used in several situations, whenever a certain type of currency is deemed no longer desirable to use.
Old coins and notes being replaced with new designs: Sometimes, certain denominations of old notes and coins are replaced with newer models. In this situation, the older coins can be officially demonetized. The reasons for such move includes:
elimination of fake notes,
reduce corruption,
stop terror funding, and
bring unused idle cash into the banking channel, etc.
A move to digital currency: Demonetisation has also moved the economy of India towards a cashless system. Some people predict that in the future we will use digital currency to pay for things and physical cash will be totally demonetized.
Also read: Demonetisation: Meaning, Advantages and Disadvantages
Demonetisation in India has worked in the many ways in India. India’s demonetisation process has tackled the country’s problem of counterfeit notes.
The process of demonetisation in India has not been without its challenges. It has, however, had both positive and negative impacts in the short-term. It remains to be seen if the positive impacts will be long-lasting.
Hope this helped u and PLZ mark as brainist and like...........
Demonetisation refers, therefore, to the process of deciding that certain coins and banknotes can no longer be exchanged for goods and services.
The process of demonetisation takes the symbolic meaning and power away from a given type of currency.
In India, it was announced on 8th November, 2016 that the Rs. 500 and Rs. 1000 banknotes would cease to qualify as valid tender from 9th November, 2016 onward. (Source: wikipedia )
Why is demonetisation used? Demonetisation is used in several situations, whenever a certain type of currency is deemed no longer desirable to use.
Old coins and notes being replaced with new designs: Sometimes, certain denominations of old notes and coins are replaced with newer models. In this situation, the older coins can be officially demonetized. The reasons for such move includes:
elimination of fake notes,
reduce corruption,
stop terror funding, and
bring unused idle cash into the banking channel, etc.
A move to digital currency: Demonetisation has also moved the economy of India towards a cashless system. Some people predict that in the future we will use digital currency to pay for things and physical cash will be totally demonetized.
Also read: Demonetisation: Meaning, Advantages and Disadvantages
Demonetisation in India has worked in the many ways in India. India’s demonetisation process has tackled the country’s problem of counterfeit notes.
The process of demonetisation in India has not been without its challenges. It has, however, had both positive and negative impacts in the short-term. It remains to be seen if the positive impacts will be long-lasting.
Hope this helped u and PLZ mark as brainist and like...........
muskan1641:
thank you dear
PLZ MARK as brainist
Answered by
0
hiii guys...
The Indian government has long struggled with the issue of the fake currency and black money. In 1946 and in 1978, the respective Indian governments turned to demonetization as the long-term solution to the problem. The same historical event would take place in India in 2016.
The Process of Demonetization in India
On November 8th 2016, India’s prime minister made the announcement of demonetization of all 500 and 1000 rupees notes. Thus, the government announced that both the Rs. 1000 and Rs. 500 would not serve as legal tender.
Thus, the cash in circulation were to be replaced by other forms of cash (digital forms). This caused a rush to the banks.
The old 500 and 1000 rupee notes were to be deposited with bank withing 31st December, 2016. That meant that money, in the form of old 50o and 1000 rupee notes, were to become useless post 31st December, 2016.The cancelled notes were to be deposited with the bank and /or replaced with new 500 and 2000 rupees.New types of notes which are of the same currency were introduced in the market.The challenge had been the slow circulation of the new currency.Most of the banks didn’t had enough new currencies. Even today, this new challenge is still there and is expected to continue for a certain period of time.At ATMs there was some daily cash withdrawal limit. In addition, there was a weekly withdrawal limit as well (for example rupees 24000 per week).In the business world, there had been a cash crunch since not many customers had access to the large amount of the new currencies.
|-|∆¶£
!T
|-|£L¶
¥∆Π
The Indian government has long struggled with the issue of the fake currency and black money. In 1946 and in 1978, the respective Indian governments turned to demonetization as the long-term solution to the problem. The same historical event would take place in India in 2016.
The Process of Demonetization in India
On November 8th 2016, India’s prime minister made the announcement of demonetization of all 500 and 1000 rupees notes. Thus, the government announced that both the Rs. 1000 and Rs. 500 would not serve as legal tender.
Thus, the cash in circulation were to be replaced by other forms of cash (digital forms). This caused a rush to the banks.
The old 500 and 1000 rupee notes were to be deposited with bank withing 31st December, 2016. That meant that money, in the form of old 50o and 1000 rupee notes, were to become useless post 31st December, 2016.The cancelled notes were to be deposited with the bank and /or replaced with new 500 and 2000 rupees.New types of notes which are of the same currency were introduced in the market.The challenge had been the slow circulation of the new currency.Most of the banks didn’t had enough new currencies. Even today, this new challenge is still there and is expected to continue for a certain period of time.At ATMs there was some daily cash withdrawal limit. In addition, there was a weekly withdrawal limit as well (for example rupees 24000 per week).In the business world, there had been a cash crunch since not many customers had access to the large amount of the new currencies.
|-|∆¶£
!T
|-|£L¶
¥∆Π
thank u
ur most welcome
Similar questions