short speech on the topic demonization
Answers
Demonetization means the withdrawal of existing currency in the form of notes or coins, and issuing new notes or coins in its place. It is the process of invalidating the value of currencies in circulation.
The currency loses its valid tender and they are no longer accepted by the sellers in exchange of the goods sold.
Demonetization was sudden and came as a surprise on the night of November 8, 2016 when the Prime Minister of India, Narendra Modi announced the demonetization of all Rs.500 and Rs. 1,000 denomination banknotes of the Mahatma Gandhi Series.
The demonetization announcement made the use of Rs.500 and Rs.1000 banknotes invalid past midnight of November 8. The objective of demonetization as claimed by Government of India was to curtail the black money running as shadow economy and to stop the use of counterfeit cash to fund illegal activity and terrorism. The sudden nature of the announcement—and the prolonged cash shortages in the weeks that followed—created significant disruption throughout the Indian economy, threatening economic output.
The move was heavily criticized as poorly planned and unfair, and was met with protests, litigation, and strikes. In the days following the demonetisation, the country faced severe cash shortages with severe detrimental effects across the economy. People seeking to exchange their bank notes had to stand in lengthy queues, and several deaths were linked to the inconveniences caused due to the rush to exchange cash. As the cash shortages grew in the weeks following the move, the demonetization was heavily criticised by prominent economists and by world media.
If we analyse the key objectives of Demonetization, it has remained a success and has been termed as the greatest financial reform that aims to curb the black money, corruption and counterfeit currency notes. All the people who are not involved in malpractices welcomed the demonetization as the right move.
Demonetization has helped India to become corruption-free to a large extent as it became difficult now to keep the unaccounted cash.
Demonetization has helped the government to track the black money as the unaccounted cash will now flow no more and the amount collected by means of tax can be better utilized for the public welfare and development schemes.
One of the biggest achievements of demonetization has been seen in the drastic curb of terrorist activities as it has stopped the funding the terrorism which used to get a boost due to inflow of unaccounted cash and fake currency in large volume.
Money laundering has become difficult as the activity can easily be tracked and the money can be seized by the authorities.
Demonetization has helped in stopping the running of parallel economy due to circulation of fake currency.
Banks which were reeling under deposit crunch and were running short of funds have suddenly swelled with lot of money which can be used for future finances and loans.
The people who opened the Jan Dhan accounts can now use their accounts and become familiar with banking activitiy. The money deposited in these accounts can be used for the developmental activity of the country.
Demonetization has driven the country towards a cashless society. Lakhs of the people even in remote rural areas have started resorting to use the cashless transactions. The move has promoted banking activities. Now even the small transactions have started going through banking channels and the small savings have turned into a huge national asset.
Inflationary trends have slowed down