Demonetization is the act in which the current currency of the nation is eliminated and new currency notes and coins get introduced. It totally cuts off the payments or transactions with the old currency and the new currency is used. Demonetization act is done when the economy holds a lot of black money and corruption. To eliminate counterfeit currency, curb black money, and reduce tax evasion. Demonetization is a very crucial position where an economy can get maximum benefit or can get extremely damaged. It brings many changes in the growth, development, political and personal environment in the economy.
In India, the demonetization act was declared on 8th November 2016 at 8 pm. It was announced by PM Narendra Modi on Indian television. It was a sudden announcement; the country was not prepared for anything like that. Everyone was in a panic. The declaration said that the notes of Rs 500 and Rs 1000 will not be in use after 12 am. But a time period of 2 months was given for exchanging the currency with the new currency.
Yes, it’s totally agreeable that demonetization brought many changes in the Indian economy. As we all know India is a vast country with a wide population, and any changes to the economy bring changes to the society and politics.
As people get to know about demonetization, there was a huge group of people behind the banks exchanging their currency. There was a shortage of cash as it was an unplanned situation, but as Indians, it’s our responsibility to cooperate with the government, so we did. For some benefits in society, people made long queues, which was a little pathetic but somehow almost everyone has exchanged their money. And gradually everything came to normal.
After demonetization, there were many impacts on society. There were benefits with some disadvantages. Our economy became a less cash-based economy, which is a sign of growth. This is the best among the things demonetization did. With it many disadvantages were also followed like a halt in the economy, it stopped the development in the economy, the works were stopped, transaction of money in the small and medium sectors were disrupted. Many lost their jobs, and the stoppage of income was a great issue.
Many things happened but now it’s quite normal. Everything came to normal and the daily lives of people became as usual. As reports say a very less amount of black money was recovered which is not good for the economy. There are many things in society that have to be developed and are developing gradually.
Changes will come and after a time it will all become normal, as demonetization occurred to bring changes but gradually everything becomes normal. It’s good for the economy but anything that is occurring should be properly examined before its implementation. So, it will not make the lives of people chaotic.
For deep details, you can read the full article. Click the link below :