Demonetisation is a surprise move by our honorable Prime minister Mr. Narendra Modi. Everyone has the word notebandi (Hindi word) on their lips. Everyone faces some or other problem due to the demonetization, but in spite of this problem, people were happy with this decision of the prime minister.
In the history of the Indian economy, the demonetization has occurred twice. The first demonetization was taken place in the year 1946 when there was Pandit Nehru government. The reason to imposed that demonetization was to target those people who are earned huge profit by supplying the Allied power in World War 2.
In the year 1978, the second demonetization occurred. It was the time when the Bhartiya Janta Party (BJP) was ruling the nation. The note of rupees 1000, 5000 and 10,000 was under demonetization.
The Goal Of Demonetization
Combating taxes evasion through black money was the only reason to set up for the demonetization.
The Process Of The Demonetization
The new series of the currency has the signature of Urjit Patel, so with this, we can conclude that the decision of demonetization was not to come into consideration in a single day, but it was pre-planned. It is quite simple to understand that the process is lengthy. The procedure includes the printing of new notes. The transition of ATM. The method of demonetization would have started at least 6 to 8 month before. In the early of January or February of 2016.
The Raghuram Rajan, the governor of RBI, was in strong opposition for the demonetization. The initial phase of the process was started without the knowledge of Rajan.
There was a severe cash shortage as on the 18th of November,16 only 1.36 lakh crore rupees were issued, and due to this there we saw long ques outside every bank.
The full process was kept a secret; only the worker who was involved in the demonetization process knew the truth whereas the possibility of demonetization was announced by the chairman of State Bank Of India in April 2016.
The demonetization of the 500 and 1000rs note was announced by our Honorable Prime minister Mr. Narendra Modi Ji. From the midnight of 8th November, 16 the notes were declared as invalid.
The government gave the opportunity to people, to get their notes changed by the depositing them in the bank till the 30th of December.
One can change up to rs 4000 at a time, but it was reduced to Rs 2000 a week later. In the same way, the withdrawal was also limited; one can withdraw up to rs10,000 per day. The farmer was in the exceptional case; they can withdraw rs 25000 in a week to return their loan.
Effect Of Demonetization
With the rise of the sun, every people goes in the bank to make exchange their notes which takes lots of time. The crime rate goes down directly with the process of demonetization. The ATM stopped working with a shortage of cash. Every people are were facing problem to buy any product.
The Advantage Of Demonetisation
Corruption gets lowered due to the implementation. The crime rate gets suddenly reduced.
The objective of the demonetization was noble. To a greater extent, there was a reduction in black money. The terrorist organization was disturbed, and the crime rate gets lowered.
For any other queries about Essay On Demonetisation, you can leave your queries below in the comment box.