Good Morning Friends.
According to me, Demonetization will helpful for development growth of the country. But at the same time, that impact is disturbed on common peoples. Because common peoples are want to re-modify the rupee notes. So these is disturbed on common peoples. Business persons or well-being persons have easily modified the rupee notes. So, these things also affect the common poor peoples. Black money holders also easily change their money but mostly does not affect them.
In my opinion, demonetization has been a huge success. It has broken the parallel economy which was going in the country all over the years. Tremendous growth in the cashless and digital economy has instilled fears to some extent in the hearts of those who were making huge amount of money through illegal roots. It has also affected the terror funding and fake currency. Though many people were claiming that it has affected the local shopkeepers, I would strongly object the method of gaining money by the traders and shopkeepers who would never give proper bills and would escape from the taxation. Why only the salaried people should pay taxes, everyone in the country who has cracked the barrier of min taxa limit should pay and ensure the development of everyone in the country. Some said farmers witnessed suicides, I would say that honest farmers would hardly have had a heart in their mouth when they heard this announcement. We know very well that their incomes have been due to their sweat and blood and not like the looters of this country. In the end, I would like to conclude that tough decisions are most of the times severe but their impact on the economy gives a long-lasting positive impact and demonetization is one among them.
Everybody knows that demonetisation have been implemented to get rid of the black money from the economy. Because holders have been able to secure their money in the mode of cash so due to banned of 500 and 1000 rupee note they have not an option because no one accepts the banned money but it creates a mode of earning income for some people. Persons who are connected with the bank got the new money and exchanged with old money in lower value. And the difference amount they earned.
So what the black money reduces or not?
The transaction is successful and black money holders got the money in new denomination but some less.
But the money was in the hands of people who had earlier.
Demonetisation creates the problem a lot to the middle-class family. They had to spent their time in standing rows of banks to get their hard earned money.
As per my point of view, I think it is a good step taken by the government because in our India many people who don't deposit their money in the bank and as well as govt is not able to charges tax from them. But it also affected some people who belong to a middle class family.
According me, demonetization is good decision but it is implemented in well manner. There is no planned for that People belongs to the middle class faced lots of problems like, they have to stay in queue to change their old many. But corrupted people having sol for this issue. Manly farmer face lots of problem like distributed wages to workers.
Demonetization is a powerful measure. But it is not implemented properly. Whatever modi did is in a proper manner except he would have taken a better steps to implement without suffering the common people.
If he would have arranged the quantum of currency for exchange for a common people who are depositing in a bank it would have get successful obviously black money holders cannot deposit black money to a bank except to some extent.
So the powerful idea gets flopped.
Demonetization like everything in life has its pros and cons The idea behind it was to eradicate corruption which you can say was a good idea as it did put people with black money in a tough position and if not totally but did help the government, but at the same time the people in villages and people with savings did face a lot of issues but rather than just sitting and watching corrupt people, taking an action was important. If planned well it could be a great move.
Demonetization means ban of currency in the economy. In 1946, demonetization of 1000 Rs. Note and 10, 000 rupee note took place in India. In 1954, 1000 rupee note, 5000 and 10,000 rupee note were introduced. Again in 1978, government demonetised 1000 rupee note, 5000 and 10,000 rupee note from the economy. The impact of demonetization on various sectors are:
GDP (Gross Domestic Product); we can say that GDP is directly proportional to the government Expenses, consumer expenses, and investment. After demonetization, the circulation of currency became less so GDP automatically became less.
Farm input is not available in the agriculture sector so daily wages farmers became jobless.
In long-term impact on lending rates became down.
Inflation arises due to higher liquidity presence in the market.
After the announcement on 9th of nov 2016, the gold price increased up to 40,000/- from 32,000. So 20% to 30% high was observed in gold price after demonetization.
After the announcement within 4 days 18 crore transaction was handled by the banking system.
Activities carried out by terrist hamper by demonetization of currency.
Firstly, Demonetization is a good idea to get rid of corruption, The Government has implemented without a proper plan !so, it doesn't have any impact.
I think in the case of humanity if our government think about 1% then they defiantly did help our poor people because we have known many people who lived in villages they have no bank account. That's the big problem.
And the other thing is we already known how profitable people change theirs.