what is the benefits of demonitization
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Answered by
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This concept surely seems familiar to all of us, as it is now filling newspapers and newsrooms across the country.
Demonetization is the legal act of making a currency invalid, and replacing it with a new one.In other words, it could be a removal of a particular currency, say Rs 1000, from circulation, and issuing a new one of equivalent value or denomination. Demonetization takes places also , when the currency of a nation changes.
Such a move could definitely affect people, but as a process, demonetization has proven effective in controlling counterfeiting and black money in any country.
The concept of demonetization is not something new in modern India as it has gone through the same twice - in 1946 and 1978.
The most important argument in support of demonetisation is that the process will curb the financial malpractices in the country.
This includes money for which tax isn't paid or in other word, black money.
It is believed that a considerable amount of black money is stored in denominations of 1000 and 500.
Hence ,by making the invalid , users will be forced to get rid of them.
This will also help the govt. to find out the sources of black money circulting in the country.
Counterfeit notes are used for many illegal activities like drug trafficking , financial terrorism , corruption etc.
Demonetisation is also expected to fight such crimes too.
Besides , the process takes India a step ahead to the digital world.
So in spite of the difficulties , many economists say that demonetisation will help the country in the long run.
Demonetization is the legal act of making a currency invalid, and replacing it with a new one.In other words, it could be a removal of a particular currency, say Rs 1000, from circulation, and issuing a new one of equivalent value or denomination. Demonetization takes places also , when the currency of a nation changes.
Such a move could definitely affect people, but as a process, demonetization has proven effective in controlling counterfeiting and black money in any country.
The concept of demonetization is not something new in modern India as it has gone through the same twice - in 1946 and 1978.
The most important argument in support of demonetisation is that the process will curb the financial malpractices in the country.
This includes money for which tax isn't paid or in other word, black money.
It is believed that a considerable amount of black money is stored in denominations of 1000 and 500.
Hence ,by making the invalid , users will be forced to get rid of them.
This will also help the govt. to find out the sources of black money circulting in the country.
Counterfeit notes are used for many illegal activities like drug trafficking , financial terrorism , corruption etc.
Demonetisation is also expected to fight such crimes too.
Besides , the process takes India a step ahead to the digital world.
So in spite of the difficulties , many economists say that demonetisation will help the country in the long run.
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Answered by
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Demonetisation has a lot of benefits
1- after demonetisation the money that is hoarded by business men and other people's is caught and will help in nation's development.
2-the money that is burnt by people will also not be wasted but the RBI will issue the same amount of money and that hoarded money will again be active in nation's economy.
3-also it has stopped the terrorism in kashmir.
1- after demonetisation the money that is hoarded by business men and other people's is caught and will help in nation's development.
2-the money that is burnt by people will also not be wasted but the RBI will issue the same amount of money and that hoarded money will again be active in nation's economy.
3-also it has stopped the terrorism in kashmir.
good
Oh thanks
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