What is demonitisation.writes its advantages and disadvantages
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Demonetization is the act of stripping a currency unit of its status as legal tender. It occurs whenever there is a change of national currency: The current form or forms of money is pulled from circulation and retired, often to be replaced with new notes or coins. Sometimes, a country completely replaces the old currency with new currency.
Advantages of Demonetisation
1.Eradicate the use of fake currency.
2.Tackle with corruption due to currency upholds.
3.Withdrawal of old currency and bring unaccounted money back into the banking system by a considerable increase in bank deposits. With this the idle money becomes productive.
4.Encourage digital payment modes to reach the target of a cashless society.
5.Reduction of illegal activities.
Disadvantages of Demonetisation
Some of the disadvantages that may emerge could be:-
1.Inconvenience to the public.
2.Huge economic cost to the nation.
3.Disruption of business activities.
4.Decrease in sales, particularly cash based sales.
5.Labour / Wage payment issues
Advantages of Demonetisation
1.Eradicate the use of fake currency.
2.Tackle with corruption due to currency upholds.
3.Withdrawal of old currency and bring unaccounted money back into the banking system by a considerable increase in bank deposits. With this the idle money becomes productive.
4.Encourage digital payment modes to reach the target of a cashless society.
5.Reduction of illegal activities.
Disadvantages of Demonetisation
Some of the disadvantages that may emerge could be:-
1.Inconvenience to the public.
2.Huge economic cost to the nation.
3.Disruption of business activities.
4.Decrease in sales, particularly cash based sales.
5.Labour / Wage payment issues
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