The demonetization of currency is the process of the demonetize which means banning the currency. When the government of a country decides that to ban their old notes and to introduce new notes in the market and this process is the demonetize process of currency. As there are many problems in the economy of the country and by this process,
the problems could get solve easily by demonizing the old notes and by introducing some new notes. Circulation of the old currency stopped, and the making of new currency get started in this process.
This process of the money demonetize been taken by the Indian government, and the Indian government has banned notes of 500 and 1000 in recent times and instead of this many 2000 are introduced. It is a great move of money replacement that has been organized by the Indian government.
The Use Of Demonetization
When there is a number of the problem of corruption and black money in a country this method of demonetization is very easy to know about the corruption and black money that has been hide by the people of the country. Through this method, the corrupt money would come in existence as people have to exchange the money to go through the bank and while exchanging this corrupt money would come as there will be no record of this money.
The people who did not pay any tax and keep their tax paying money and do corruption this method is very easy to let these people pay taxes as there will be more amount of money to be exchanged so there will be more amount of tax assured to the money of those people. In the past, some of the countries have also used this method of Demonetization for trade purposes.
The Demonetization Process In Countries
This Demonetization process is introduced in the Indian government by their prime minister Narendra Modi as he has taken a bold step against the problem of black money and corruption and these process of the demonetize was introduced on the notes on November 2016 and for introducing this system in Indian government was not like easy thing it was a major decision that has been taken by the government.
The prime minister has announced the sudden declaration of the money demonetize in the country, and it created chaos all over the people, and there was much confusion growing among the people for the demonetization of the currency. While the people were very much confused because of this process but the media and economist and the responsible citizens try to make the common people aware of this step and also explain the benefits of the step. With the declaration of the note, the government has taken many steps for the citizens as the citizen can make free bank accounts in Jan Dhan Yojana and do their transaction through it.
Due to this process there where many advantages to the Indian economy because of this many black money and corruption gets out and the people who do not pay taxes likely to pay because of this method but there is also a disadvantage as the poor people and the workers left with no occupation, and their consistent play has been stopped and also the people have to go in banks as for exchanging there notes so this created a magic chaos amongst the people.
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