ADVANTAGES AND DISADVANTAGES OF DEMONETIZATION
VIEW:
Demonetization resulted in the decline of India’s GDP by 2 percent, unemployment, and various other issues, but still few are some of the important achievements of demonetization, I would like to highlight: 100% fake currency out of circulation in one stroke! This is probably one of the greatest change that is taking place.
Cash to create chaos and terror lying with terrorists, Maoists, Naxalites, Jihadis went waste! Hawala sources dried up for funding of terrorists, Maoists, Naxalites, conversion lobby, and Jihadis.{biggest advantage to Kashmir}
All jewelers are being issued forms to declare their GOLD stock on a day to day basis! Defaulters of the bank, property tax, electricity bills, telecom bills are clearing their long pending bills. Defaulters of all kind of taxes are clearing their dues!
Small vendors started going digital and already using APPS, digital forms of transactions and digital wallets! The fiscal deficit of India set to reduce, due to cash received by RBI Reduction or parallel economy and increase of cash fewer transactions will help in reducing the tax evaders and hence result in swelling of revenue coffers of the government.
Technology has the power to change our lives and it will play a major role in elevating the poor from their current situation. Increase in tax revenue will help the government to provide loans at a much-reduced rate of interest.
- Thrishul Ganapathy
- 1 BBA ‘B’
COUNTERVIEW:
The biggest disadvantage of demonetization has been the chaos and frenzy it created among common people initially. Everyone was rushing to get rid of demonetized notes while the inadequate supply of new notes affected the day to day budgets of citizens. Bank sand ATMs witnessed long queues while small businesses suffered temporary financial losses. The situation was even worse in rural India where people struggled to exchange and withdraw cash due to lack of enough number of banks and ATM’s in their vicinity.
The destruction of old currency units and the printing of new currency units involve costs which have to be borne by the government and if the costs are higher than benefits then there is no use of demonetization.
This move basically targeted the black money, but many people who had not kept cash as their black money and rotated or used that money in other asset classes like real estate, gold and soon were not affected by demonetization. It turned out that more than 99% of demonetized currency came back to the RBI and was accounted for. Therefore, the government’s claim about black money fell on its face.
The lack of awareness about the Demonetization in the rural places caused a lot of loss to the people who did not know about the whole thing as it took place in a very short span of time. Due to this a lot of people who did not have access to mass media could not get their money exchanged. Thus all their hard earned money was left worthless and their hearts filled with sorrow.
- Shreyas H.P
- 1 BBA ‘B’
VIEW:
Demonetization resulted in the decline of India’s GDP by 2 percent, unemployment, and various other issues, but still few are some of the important achievements of demonetization, I would like to highlight: 100% fake currency out of circulation in one stroke! This is probably one of the greatest change that is taking place.
Cash to create chaos and terror lying with terrorists, Maoists, Naxalites, Jihadis went waste! Hawala sources dried up for funding of terrorists, Maoists, Naxalites, conversion lobby, and Jihadis.{biggest advantage to Kashmir}
All jewelers are being issued forms to declare their GOLD stock on a day to day basis! Defaulters of the bank, property tax, electricity bills, telecom bills are clearing their long pending bills. Defaulters of all kind of taxes are clearing their dues!
Small vendors started going digital and already using APPS, digital forms of transactions and digital wallets! The fiscal deficit of India set to reduce, due to cash received by RBI Reduction or parallel economy and increase of cash fewer transactions will help in reducing the tax evaders and hence result in swelling of revenue coffers of the government.
Technology has the power to change our lives and it will play a major role in elevating the poor from their current situation. Increase in tax revenue will help the government to provide loans at a much-reduced rate of interest.
- Thrishul Ganapathy
- 1 BBA ‘B’
COUNTERVIEW:
The biggest disadvantage of demonetization has been the chaos and frenzy it created among common people initially. Everyone was rushing to get rid of demonetized notes while the inadequate supply of new notes affected the day to day budgets of citizens. Bank sand ATMs witnessed long queues while small businesses suffered temporary financial losses. The situation was even worse in rural India where people struggled to exchange and withdraw cash due to lack of enough number of banks and ATM’s in their vicinity.
The destruction of old currency units and the printing of new currency units involve costs which have to be borne by the government and if the costs are higher than benefits then there is no use of demonetization.
This move basically targeted the black money, but many people who had not kept cash as their black money and rotated or used that money in other asset classes like real estate, gold and soon were not affected by demonetization. It turned out that more than 99% of demonetized currency came back to the RBI and was accounted for. Therefore, the government’s claim about black money fell on its face.
The lack of awareness about the Demonetization in the rural places caused a lot of loss to the people who did not know about the whole thing as it took place in a very short span of time. Due to this a lot of people who did not have access to mass media could not get their money exchanged. Thus all their hard earned money was left worthless and their hearts filled with sorrow.
- Shreyas H.P
- 1 BBA ‘B’
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