Demonetization is one of the most trending topics which occupied the columns of Indian newspapers in 2016. INDIAN PM Narendra Modi took a bold step against the black money holders by declaring demonetization in November 2016. Initially, implementation of demonetization in a populous country like India was not a cakewalk for the government.The sudden declaration of demonetization in the country has created lots of chaos and confusion among the common people of the country, but gradually everything becomes normal. But as a result of demonetization in the country, an essay on demonetization (simply we can say demonetization essay) or article on demonetization has become a common question in different board exams for the students there is a sudden demand of Demonetization essay among the students. Hence, GuideToExam brings to you the ultimate solution by providing you all your needful information regarding demonetization essay.
Essay on Demonetization 2017
The discontinuity of a particular currency from circulation and a replacement of it with a new currency is called Demonetization. In the present setting, it is the restricting of the 500 and 1000 section money notes as a lawful delicate. In other words, it can also be said that A demonetization is an act of stripping a currency unit of its status as legal tender. It occurs when a particular form of money is pulled from circulation and a new note or coin is introduced in the market as a replacement of withdrawn form of money.
Objectives of Demonetization
The government has different objectives behind this demonetization. The first and foremost objective is to attempt to make India a corruption free country. In his different speech on demonetization Indian Prime Minister Narendra Modi clearly, points out that this bold step has been taken to get a control over corruption in the country. Secondly, it is done to curb black money, thirdly it is also a step to control escalating price rise, fourth to stop fund flow to illegal activity. On the other hand demonetization in India is also a very well planned step of govt of India to earn proper tax from the citizen. With the help of a different article on demonetization or essay on demonetization in different media, economist and responsible citizens tried to make the common people aware of the benefit of this steps taken by the government.
In a demonetization essay or article on demonetization, it is also necessary to put some light in the background of this process. There is a background to the current decision of demonetization of 500 and 1000 rupees note in India. The government has declared demonetization across the country on 8th November 2016. But much before the announcement of demonetization, the government has taken few steps in this direction. As the first and foremost step government had requested the citizens to open free bank accounts under Jan Dhan Yojna. Again the government has asked the people to deposit their money in Jan Dhan account and do their transactions through sparing money procedure or proper banking procedure only. Thereafter the step that the government started was an obligation declaration of the compensation and had given October 30, 2016, due date consequently. This can be considered a major step by the government in the process of demonetization. (In order to write a complete demonetization essay or article on demonetization or essay on demonetization the essay would be incomplete without mentioning this major point). Through this procedure, the government or administration could tidy up a gigantic measure of undeclared wage.
Regardless, there were various who still aggregated the dim money, and remembering the ultimate objective to deal with them; the administration detailed the demonetization of 500 and 1000 money notes.
(In an essay on demonetization or an article on demonetization it is very much necessary for us to points out the merits and demerits of demonetization. But in a single demonetization essay or article on demonetization having limited words, it is not possible to point out each and every advantages and disadvantage or merit or demerit. So we are leaving the minor points for some other day.) The demonetization approach is being seen as a monetary change in the nation yet this decision is brimming with its own particular advantages and negative imprints as well.
Advantages of Demonetization
- The demonetization technique will help India to twist up sans corruption. Those appreciating taking result will quit worsening rehearses as it will be hard for them to keep their unaccounted money. In his different speech on demonetization PM Modi openly says that it is a process to trap the black money holders to track out their money.
- This move will help the governing body to track the dim or black money. After the declaration of demonetization, as per new govt rule, Those individuals who have unaccounted money are by and by required to show pay and submit PAN for any genuine budgetary transactions. The governing body can get pay cost share for the wage on which force has not been paid.
- The move will stop financing to the unlawful activities that are thriving a result of unaccounted pay. Denying high-regard money will deal with criminal activities like dread based oppression et cetera. The prohibition on high regard money will in like manner check the threat of money laundering. By and by such development can without a doubt be taken after and compensation charge division can catch such people who are in the matter of money laundering.
- This move will stop the circulation of fake money. A vast portion of the fake money put in circulation is of the high regard notes and the restricting of 500 and 1000 notes will get rid of the circulation of fake money. This move has made excitement among those people who had opened Jan Dhan accounts under the Prime Minister’s Jan Dhan Yojana. They can now store their money under this arrangement and this money can be used for the developmental development of the nation.
- The demonetization approach will drive people to pay compensation evaluation frames. Most by far of the overall public who have been concealing their wage is by and by constrained to way to deal with pronounce their compensation and pay force on the same.
- Regardless of the way that stockpiles to Rs 2.5 lakh won’t gone under Income survey investigation, individuals are required to submit PAN for any store of above Rs 50,000 in genuine money. This will help the compensation evaluate office to track individuals with high denominations money.
- A conclusive objective is to make India a cashless society. All the monetary transaction must be through the dealing with a record system and individuals must be responsible for each penny they have. It is a monster wander towards the dream of making an automated India. If, despite everything that these are the advantages, there are terrible signs of this system too.
Negative signs of Demonetization
- The declaration of the demonization of the money has made enormous inconvenience the all-inclusive community. They are rushing to the banks to exchange, store or draw back notes. The sudden declaration has made the situation wind up discernibly scattered. Tempers are running high among the masses as there is a deferral in the circulation of new money. It has significantly affected business. In view of the money crunch, the entire economy has been made to come to a standstill.
- Various poor step by step wage workers are left with no occupations and their consistent pay has stopped in light of the way that organizations can’t pay their step by step wage. The lawmaking body is suspecting that it’s hard to complete this procedure. It needs to bear the cost of printing of the new money notes.
- It is additionally feeling that it’s difficult to put new money into circulation. The 2000 rupees note is a weight on the all inclusive community as no one jumps at the chance to do the transaction with such high regard money. A couple of reporters think it will only help people to use dull money more successfully in future. Further, numerous people have covertly discarded the demonetized money notes and this is a disaster to the nation’s economy.
Economists are possessed in rattling off various more merits and negative sign of this procedure. The assembly is expressing that there are only purposes of enthusiasm of demonetization course of action and this will be found in the long term. Past Prime Minister Manmohan Singh who is a conspicuous economist, past RBI delegate and past Finance Minister of the nation, names the demonetization move as a ‘sorted out loot and approved plunder’. Regardless, if, despite everything that we consider the advantages versus terrible imprints, it will be protected to conclude that the past surpasses the last mentioned.
In spite of the way that there are persevering and agony among the masses agreeable moment however the figure is that its points of interest will be found as time goes on. The administration is making all the fundamental walks and actions to deal with the money request and soon the trial and tribulations of the all inclusive community will be over with the smooth stream of the new money.
This is not everything about demonetization.In this “demonetization essay” or article on demonetization, we have only tried to give you an idea on demonetization.If you have any more queries please drop a comment for us. We will discuss your points in our next “demonetization essay” or article on demonetization.