The Indian government’s decision to demonetise high-value banknotes in November 2016 has had a huge impact on India’s economy. This paper will discuss the impact of demonetisation and its implications for the country.
The essay based on demonetisation is a text written to help students understand the idea of demonetisation and how it affects them.
Introduction:
Our honorable Prime Minister, Mr. Narendra Modi, surprised everyone by implementing demonetisation. The term notebandi (a Hindi word) is on everyone’s lips. Everyone has experienced some kind of difficulty as a result of the demonetization, yet despite this, many were pleased with the prime minister’s choice.
Demonetization has happened twice in the history of the Indian economy. The first demonetization took place in 1946, under the Pandit Nehru administration. The purpose of the demonetization was to punish individuals who made a lot of money by supporting the Allies during World War 2.
In 1978, the second demonetization took place. It was during this period that the Bhartiya Janta Party (BJP) ruled the country. The 1000, 5000, and 10,000 rupee notes were all demonetized.
Demonetization’s Purpose
The sole purpose for the demonetization was to combat tax evasion via black money.
Demonetization: A Step-by-Step Guide
The new series of money has Urjit Patel’s signature, indicating that the decision to demonetize was not made on the spur of the moment, but rather was prepared ahead of time. It is self-evident that the procedure will take a long time. New notes are printed as part of the process. The ATM changeover. Demonetization would have begun at least six to eight months beforehand. In the first few weeks of January or February of the next year.
The governor of the Reserve Bank of India, Raghuram Rajan, was a vocal opponent of demonetization. The procedure was begun without Rajan’s awareness in the first step.
There was a serious cash shortage, as just 1.36 lakh crore rupees were released on November 18th,16 resulting in lengthy lines outside every bank.
Only those who were directly engaged in the demonetization process were aware of the reality, despite the fact that the prospect of demonetization was stated by the head of the State Bank of India in April 2016.
Implementation
Our Honorable Prime Minister, Mr. Narendra Modi Ji, announced the demonetization of the 500 and 1000rs notes. The notes were ruled invalid at midnight on November 8, 16th.
People may have their notes altered by depositing them at a bank until December 30th, according to the authorities.
The maximum amount that may be changed at one time is Rs 4000, however it was lowered to Rs 2000 a week later. Similarly, withdrawals are restricted; one may only withdraw up to rs10,000 each day. The farmer’s situation was unique; they could take Rs 25000 in a week to repay their debt.
Demonetization’s Impact
With the rising of the sun, everyone rushes to the bank to convert their currency, which takes a long time. The rate of crime decreases as a result of the demonetization process. Due of a cash deficit, the ATM stopped functioning. Every person was having difficulty purchasing any goods.
The Benefits of Demonetisation
As a result of the installation, corruption is reduced. The crime rate drops dramatically.
Conclusion:
The goal of demonetization was admirable. There was a decrease in black money to a larger degree. The terrorist group has been disrupted, and crime has decreased.
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