pros and cons: Demonetization completes one year. On November 8 last year, Prime Minister Narendra Modi had announced the closure of 500 and 1000 notes. Modi’s decision was made to take action on black money, forged notes and money from two number.While many people praised Narendra Modi for this decision but a section criticized the same. Political parties also got different views about demonetization.
PM Modi surprised the nation
Remittance of Rs 500 and 1000 denomination in India was called demonetization in media. On 8th November, at 8 pm, Prime Minister Narendra Modi addressed the nation on TV and announced that denomination of Rs 500 and 1000 will be closed from 12 midnight. Rs 500 and 1000 were replaced with Rs 500 and 2000 The new notes will be issued. It was told that people who have 500 and 1000 notes, submit them to the banks.After this decision people had a lot of trouble but they accepted it as a good step. Next to the Hours of Banks, people were standing in long lines so that they could change the notes. At that time the whole country was anxious to worry about changing the note and worry about changing everything. boundary line was also fixed for removing new notes from Banks and changing old notes. People could withdraw money only to a certain extent.The government was hoping that the money which comes in the bank will be white money and the money which will not be deposited in banks will be kept in the category of black money through the ban on bonds. While the political parties were watching Modi’s move as a political game plan, people considered it as the second battle of independence and did not do it. The change of notes will last till December 2016. Even after this, continuation of change of notes continued.Since the ban bondage has now completed 1 year, it is necessary to know how much the public has benefited from this, how much the country has benefited and how much black money has come back?
Benefits of demonitization
Regardless of the big decisions like demonitization, people had mixed reactions, but there were also many benefits and disadvantages.
Digital transaction means cashless transaction
The biggest advantage of demonitization is that digital transactions increase. According to the reports, this year, ie March and April 2017, when there was a problem of cash, the trend of people was on the digital side. According to the data, about 156 million transactions were made in March-April 2017.According to the latest release report of the Ministry of Finance, during the month of September, digital transactions of 1.24 lakh crore rupees have been held. Daily transactions were also seen in digital transactions. People took digital transactions while availing digital services such as debit card, m-wallet, IMPS, PayTm.
Decrease in spendthrift habit
Due to the ban on bondage, people have not got much cash for some time. The advantage of this was that there was a ban on fraud. Only people have spent money on things they need.
Home loan cheaper
If reports are to be believed then the home loan was cheaper after the demonitization. After the demonetization, there was a lot of money in banks which gave the common man to get home loans at cheaper rates.
Due to demonitization, price also went down. When people have more money, they waste money to spend it. This increases the prices of things, but after the ban, it did not happen and the goods were cheaper and the common people benefited
Fake companies closed
Demerits of demonitization
Difficulty in transactions
Where there is some benefit from the ban on bondage, where the common people have some advantages, they also get to see the loss. The biggest disadvantages people have seen as a transaction. Small-scale merchants may not be able to do any kind of transactions because of large-scale, note-taking.
Lakhs of unemployed
Loss to small industries
Demonitization affect was also seen on small industries, especially on those where transactions in the cash were carried out. Because of this, employment got stalled and many traders had to sit home.Impact on agricultural sector
In the field of agriculture, transactions are mostly in cash and there is also the effect of demonetization on this sector. Many farmers also demonstrated against the government at places.Big question – how much black money back after Demonitization?
Demonitization has been a year, but even today the question is whether the black money returned?
How much money back in the banks?
These questions are still the same as anybody has no solid data on black money. The government itself does not even have any concrete reports. However, the benefits of the demonitization have definitely been countered by the government from time to time.
Demonitization decision was not new
Demonitization made by Prime Minister Narendra Modi was not the first blockbuster in India’s history. Earlier in the year 1946, notes of 1000 and 10,000 were banned and then in 1954 started 5000, 1000 and 10,000 new notes.
On January 16, 1978, the Janta Party coalition government had discontinued notes of 5,000, 10000 and 1000 so that black money and fake notes could be bannedModi Government has taken another step to curb black money. Anonymous Transaction (Prohibition) Act was passed for this. It was first passed in 1988 and amended in 2016. This act has the right to seize and seal the benami properties. Simultaneously, this revised bill also provides for imprisonment with a fine.
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