Skip to main content

Essay on Demonetization

  • what is Demonetization?
  • why a country may demonetize its currency?
  • Objective and benefits
  • Facts about Demonetization
  • what is happening in India is termed by some economists
  • Advantages & disadvantages 

what is Demonetization?

Demonetization is the act of stripping a currency unit of its status as legal tender, a country completely replaces the old currency with new currency notes that we use on legal tenders issued by the Government of India.

why a country may demonetize its currency?

Because of include inflation, curbing corruption and promoting cashless transactions. the main reason for this Demonetization or remonetization in India there are two central topics they are terrorism and black money.

Facts about Demonetization

A few years ago, the Government of India has decided that the largest note will be financed, that is, the 500-1000 note, a move that has been declared a masterstroke for the Indian economy by many experts. This is not the first time that India has demonetized its currency, which was done through a complete ban on a 1000-10000 rupee note to deal with the unaccounted money (black money).

The second time it was done in 1978 by Government headed by Morarji Desai when Rs 1000, Rs 5000 and Rs 10000 notes were demonetized.

Objective and benefits

The main objective of this initiative is to identify black money, curb corruption, counterfeit currency as well as prevent finance terrorism. The move is considered to be the largest cleanliness drive against black money in the history of the Indian economy. 

According to the RBI, 87% of transactions in India are cash transactions and this drawback is used by corrupt people to create a parallel economy with unilateral money (black money). This parallel economy helps finance terrorism, which in turn hampers the growth and development of the country.

It is hoped that demonetization will help reduce India's fiscal deficit and improve India's cashless economy which can be easily monitored.

what is happening in India is termed by some economists? 

Some economists say after calling the five hundred and thousand rupee notes the void government is replacing these notes with new ones so technically this is Remonetization.

Advantages of demonetization 

>Track of unaccounted cash:- The government will be able to track any amount of unaccounted cash that is with the tax evaders.

>Stop illegal activities:-it will stop illegal activities like terror funding fake node currency circulation all at once.

>Increase tax revenue:-it will increase tax revenue to the government as tax evaders will get caught this extra revenue can be used by the government for schemes and other projects like building roads hospitals etc this will benefit the poor.

Now comes disadvantages 

>Chaos:- Demonetization will naturally create chaos this is for multiple reasons tax evaders get panicked market investors, middle class, everyone gets panic as all cash must pass through bank and there must be enough new cash with the banks to give the public 

>middle:- class and poor affected:- middle-class and poor will get affected very badly how is this so most of middle-class and poor make cash transactions when there is not enough cash in the system they are the ones who get affected first.

>Demonetization won't stop black money:- Demonetization won't stop black money let us take the example of a business the business is making hundred rupees profit every year but the owner does under-invoicing and shows 50 rupees as profit so he is now having 50 rupees in black as of know demonetization cannot curb black money fourth point is about the

>Real estate fall:-  real estate contributes 11 percent of the Indian GDP, so what will happen to this Lemon percent and also lakhs of poor construction workers working in the real estate sector 

>Rural population depend on cash:- in rural places most transactions are in cash most of the population is illiterate and do not know anything about banking also markets like Mandies where eligible goods are sold get affected very badly 

>recession:- how will demonetization cause recession is nothing but a period of temporary economic decline during which trade and industry activities are reduced so when major sectors of the economy crash there is bound to be recession hitting our economy 

most economists think demonetization is a bad idea their argument is that if the government wants to come black money with deep monetization then only a fraction of their objective will be achieved this is so because most of the black money is either sent abroad in the form of hawala what is invested in the form of assets like gold.

thankyou soo much for reading I hope you like this blog, bye-bye.


Popular posts from this blog

My vision for India in 2047 postcard

  My vision for India in 2047 postcard "Our pride for our country should not come after our country is great. Our pride makes our country great." Honourable Prime Minister, Mr. Narendra Modi Ji, As we all know that India got independence in 1947 and by 2047 we will be celebrating our 100th year of independence. On this proud occasion, I would like to express my vision for India in 2047. My vision for India in 2047 is that India should be free from corruption, poverty, illiteracy, crime and everything that India is lacking.   My vision for India is peace, prosperity and truth. My vision for India is that no child should beg, no child should be forced into bonded labour. My biggest dream is to see women empowerment in all fields for India where every person gets employment opportunities. My vision for India is that everyone should have equal respect, there is no discrimination of caste, gender, colour, religion or economic status, I want India to be scientifically advanced, tec

Essay on my Vision for India in 2047 in 150,300,400 Words

  Essay On My Vision For India In 2047 ( 100- Words) By 2047 India celebrates its 100th year of Independence. Our Country in 2047 will be what we create today.  By 2047, I want to see India free from poverty, unemployment, malnutrition, corruption, and other social evils. Poor children should get an education.  There should be no gap between the rich and the poor. India should continue to be the land of peace, prosperity, and truthfulness.  Our country should continue to be secular where all religions are treated equally.  Entire world respects and recognizes the strength of India. I aspire that our country should become the largest economy in the world by 2047.  We all should work together to achieve it in the next 25 years.  Also read:  My Vision For India In 2047 Postcard 10 lines Essay On My Vision For India In 2047  ( 200 Words) Developing to develop Is the journey of a nation "I" to "me" and "My" to "our" Is the key to mission 2047. India i

Education Should Be Free For Everyone Essay

10 Lines on Education Should Be Free  1. Education should be free for everyone as it is a basic human right. 2. Free education promotes equal opportunities and reduces social inequalities. 3. Providing free education ensures that financial constraints do not hinder individuals from accessing knowledge and skills. 4. Free education empowers individuals to break the cycle of poverty and achieve their full potential. 5. Accessible education leads to a more educated and skilled workforce, contributing to economic growth. 6. Free education fosters social mobility and allows individuals to pursue higher education regardless of their financial background. 7. It promotes a more inclusive society where success is based on merit and ability rather than financial resources. 8. Free education nurtures informed citizens who are critical thinkers and actively contribute to the betterment of society. 9. Investing in free education is an investment in the future of a nation, as educated individual