write a report on demonetization in india .
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Demonetisation is a situation where the Central Bank of the country (Reserve Bankin India) withdraws the old currency notes of certain denomination as an official mode of payment.
On November 8, 2016, Prime Minister Narendra Modi in a surprise announcement said the existing higher denomination currency (Rs 500 and Rs 1000) will cease to be legal tenders. PM said this is government’s biggest push to fight black money and end corruption. The opposition, however, criticised the government for poor implementation of the scheme and said a lot of people have died standing in queues trying to get their hands on the new currency.
The government also introduced new Rs 500 and Rs 2000 notes and urged people to move towards cash-less economy. But the opposition has been protesting the government’s decision, even stalling Parliament. A ‘Jan Aakrosh Diwas’ was observed by Left and other major parties.
This is not the first time that demonetisation has been implemented in India. In 1936, Rs 10,000, which was the highest denomination note, was introduced but was demonetised in 1946. Though, it was re-introduced in 1954 but later, in 1978, the then Prime Minister Morarji Desai in his intensive move to counter the black money, introduced The High Denomination Banks Act (Demonetisation) and declared Rs 500 , Rs 1000 and Rs 10,000 notes illegal.
A lot of analysis in India and abroad claimed that demonetization of November 2016 has failed to do what it was supposed to do and its impact has turned out to be more protracted than initially expected.
Even from the point of view of promoting digital money, the government need not have put 86 per cent of all currency out of circulation. Further studies pointed out that very little black money was caught.
The Reserve Bank of India on August 30, 2017 released its report on demonetisation. In the report, it said 99 per cent of the banned notes came back into the banking system which trashes all claims of Narendra Modi that the move will flush out the black money and counterfeit currency.
With 99 per cent currency back in the system, the failure of demonetization hints two things, either the black money held in cash was very low or the government failed to implement the demonetization efficiently and all the black money held in Rs. 500 and Rs. 1000 bank notes laundered back to the banking system.
On November 8, 2016, Prime Minister Narendra Modi in a surprise announcement said the existing higher denomination currency (Rs 500 and Rs 1000) will cease to be legal tenders. PM said this is government’s biggest push to fight black money and end corruption. The opposition, however, criticised the government for poor implementation of the scheme and said a lot of people have died standing in queues trying to get their hands on the new currency.
The government also introduced new Rs 500 and Rs 2000 notes and urged people to move towards cash-less economy. But the opposition has been protesting the government’s decision, even stalling Parliament. A ‘Jan Aakrosh Diwas’ was observed by Left and other major parties.
This is not the first time that demonetisation has been implemented in India. In 1936, Rs 10,000, which was the highest denomination note, was introduced but was demonetised in 1946. Though, it was re-introduced in 1954 but later, in 1978, the then Prime Minister Morarji Desai in his intensive move to counter the black money, introduced The High Denomination Banks Act (Demonetisation) and declared Rs 500 , Rs 1000 and Rs 10,000 notes illegal.
A lot of analysis in India and abroad claimed that demonetization of November 2016 has failed to do what it was supposed to do and its impact has turned out to be more protracted than initially expected.
Even from the point of view of promoting digital money, the government need not have put 86 per cent of all currency out of circulation. Further studies pointed out that very little black money was caught.
The Reserve Bank of India on August 30, 2017 released its report on demonetisation. In the report, it said 99 per cent of the banned notes came back into the banking system which trashes all claims of Narendra Modi that the move will flush out the black money and counterfeit currency.
With 99 per cent currency back in the system, the failure of demonetization hints two things, either the black money held in cash was very low or the government failed to implement the demonetization efficiently and all the black money held in Rs. 500 and Rs. 1000 bank notes laundered back to the banking system.
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Demonetisation in India
Demonetisation is the process of removing the currency used in a country. Prime minister Narendra Modi took a bold decision to demonetise the Rs 500 and 1000 notes that were running in the economy.
The decision was a great surprise to the people. The people fell short of cash. They were left with old notes which were worthless. People faced a lot of hardships. They had to stand in long queues in front of banks and ATM machines. Many people died due to stroke. This decision greatly affected the people. It was implemented in haste.
Truly, people will never be able to forget this incident. This was a major and unplanned event in the history of India.
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