Demonetization In India

What does the term demonetization mean?

This is a term that can be used in order to discontinue a particular currency from circulation and introducing new currency notes. Our country has faced a major denomination on 8th November 2016 while our Prime Minister banned 500 and 1000 rupees motes as a legal tender. There were several reasons why our government implemented demonetization. Firstly, it was a step taken to make India corruption free. Secondly, it was done to reduce the use of black money in the country. Thirdly, it was a great step in controlling the escalating price rise. Fourthly, to stop the illegal secret funds slow. The last and not the least reason were to make people accountable for each and every single penny where they have to pay income tax in return. On the other hand side, we can also say that it was a small yet major step to make India “go-cashless” and to start Digital India.

There is a big screen scene significance behind the starting of Digital India. The first step taken by the government was that many people were urged to have a bank account under Jan Dhan Yojna. Here they were told to deposit all their money and make future transactions through this banking system. The second and one of the biggest steps that were taken were the declaration of income tax with a deadline of 30th October 2016. Through this step, many undeclared incomes were mopped up in front of the government. But this step was not enough, so the government decided to implement demonetization of 500 and 1000 rupees currency notes. Demonetization was a financial action taken in order to stop illegal financial transactions, but we should remember every act has got both advantages and disadvantages.

Those who were involved in fraudulent activities like bribing; they faced problems as they were no more will be able to keep illegal money. This process will make India corruption free. Those who used to have unaccounted money, they now have to show their income status and their PAN card to continue any financial transactions. Most of the fake currency notes were available with high pricing value. So banning of 500 and 1000 rupees notes will curb the flow of fake currency. Now each and every Indian has to pay income taxes. The main aim of demonetization was to make India cashless. Each and every transaction should be made through and everyone is responsible for their single own penny.

Demonetization has deeply affected both the middle and poor class people and the businessman as well. Many daily wage workers became jobless. The new 2000 rupees notes create a huge problem among masses as no one was ready to make deal with such high-value currency notes. Due to the cash crunch, there were losses in the Indian economy.

Demonetization can be considered as an “organized loot and legalized plunder”. The government is trying their best in order to have a super fluency in currency notes.