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 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form of money is pulled from circulation and a new note or coin is introduced in the market as a replacement of withdrawn form of money.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 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, economists and responsible citizens tried to make the common people aware of the benefit of these 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 notes 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 a 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’s 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 advantage 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 the 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 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 the 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 go 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 transactions 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 to the all-inclusive community. They are rushing to the banks to exchange, store or drawback 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 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 the 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 for 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.
SOME MORE ESSAY ON DEMONETIZATION
Very Short Essay on Demonetization/ Demonetization Essay 1
Demonetization or Notebandi is a process of discontinuing the circulation of currency. In India PM Narendra Modi declared sudden demonetization on 8th November 2016 and stopped the circulation of Rs 500 and 1000 notes in the market. The step was taken to stop corruption in the country and to curb black money. At the initial stage, there occurred sudden chaos and confusion among the public, but gradually people became aware of the advantages of demonetization and cooperate with the decision. It is believed that demonetization will reform India economically, but the result of this great move is yet to come.
150 Words essay on Demonetization / Demonetization Essay 2
The process of discontinuing the circulation of currency from the market is called demonetization. Demonetization in India was the sensational news for the world in the latter half of 2016. On the evening of 8th November 2016, Prime Minister Narendra Modi addressed the Nation and declared demonetization in the country. As per the declaration, the circulation of Rs 500 and 1000 note has been stopped from 9th November. Demonetization was declared in India to control the corruption in the country and also to bring out black money. In the beginning, general people had to suffer a lot due to the unavailability of sufficient cash, but within 3-4 months the situation became normal. Though demonetization has lessened the corruption in the country, some economists have the remark that it has not brought out the Black money as expected. But the overall result of demonetization is yet to come.
200 Words essay on Demonetization / Demonetization Essay 3
When a particular currency is stopped from circulation and a new currency is introduced, it is called demonetization. In November 2016 we have witnessed demonetization in our country. PM Narendra Modi announced demonetization in the country to control corruption in the country, to stop fund flow to illegal activity and most importantly to bring out the black money from the corrupted people. After demonetization fund flow to illegal activity and corruption has been reduced to a certain extent in the country but black money has not been recovered as expected. That is why some economists and opposition are criticizing the government until now.
Demonetization in India is not a single day decision. Though demonetization in India is declared in November 2016, the Government took different steps to make demonetization possible in the country. At first, the government had asked people to open a free account in the bank under Yan Dhan Yojna so that everyone can deposit their old currency to their bank accounts after demonetization in the country. On the other hand, due to offline transactions Government loss, lots of tax as all the transactions are not made legally in the country. So with the demonetization government tried to make most of the transactions in the country online or in other word the government wants to increase cashless transactions in the country. These steps are beneficial for the economic growth of our country. Though there are a few negative impacts of demonetization in India, those negative impacts can be avoided or ignored for the development of the country.
250 Words essay on Demonetization / Demonetization Essay 4
The process of withdrawing currency from circulation is called demonetization. The term demonetization has become very popular in India after 8th November 2016. On that day PM Narendra Modi declared suddenly demonetization in India. This is not the first time that demonetization occurred in our country. Earlier demonetization has occurred in India in 1946 and 1978. Though the government wanted to make some economic growth in the country through demonetization, as a sudden declaration of demonetization lots of chaos and confusion occurred in the country. After demonetization about 15.44 lacs, crore worth of Rs 500 and 1000 notes stopped being legal tender.
But only 10 to 12 % new notes had been issued by the government immediately which created cash shortages in the country. Long queues could be seen in the banks all day. For almost a couple of months, people in the country were in such a situation that they could not even spend their own money. But later all became normal as usual. As a result of demonetization in India, we have seen a decline in corruption in the country. On the other hand, the circulation of duplicate currency in India by some anti-national groups had become an alarming problem in the economic growth in the country. As a result of demonetization, the circulation of the duplicate currency has been stopped. Again illegal fund flow to the terrorist groups had been stopped after demonetization in India. But The Black money has not been seen brought out so far. Only for that failure, some economist calls demonetization a failure by the government.
Long Essay on Demonetization
Demonetization is the process of where current forms of money are pulled from circulation and replaced with new currency.
There are various reasons behind Demonetization done by countries. Some of them are –
- To slow down the inflation rate.
- To fight against corruption and crime.
- To encourage a Cashless economy.
Demonetization in India
Since Government’s surprising announcement on 8 Nov 2016, India’s Demonetization drive has been widely debated and lots of pros and cons have been brought out by the critics. Earlier, Demonetization in India has occurred two times. First in 1946, during the rule of Jawaharlal Nehru and second in 1978, during the rule Janata Party Government. According to the sources of government, the primary reason behind demonetization was to crackdown the funds used for illegal activates ranging from tax stealing to financial terrorism. But this sudden ban on 500 and 1000 rupee banknotes results in long queues at bank and small business owners and households struggled to lot to find cash.
As the Indian economy was dominated by cash transactions at the time demonetization and demonetized notes composed more than 80% of India’s circulating money, the disruption was huge.
Effects of Demonetization in India
Though the move of demonetization received support from the maximum number of people and organizations, especially the Bankers, Social Workers, and honest Businessmen, it was opposed by a sizeable amount of people including some Chief Ministers of various states. We, Team GuideToExam are trying to discuss here some of the positive and negative effects of demonetization.
Positive Effects of Demonetization
There are lots of positive effects of demonetization. Some of them are discussed below
- Elimination of fake currency – Fake currency is generally circulated in the highest denomination notes and hence the process of demonetization of highest currency notes in India could eliminate almost 100% of fake currency notes circulated in India.
- Abolish Black Money – Most of the people generally keep their black money in highest denomination notes, and demonetization of such notes abolished black money from the whole Indian Economy as a person having black money can never go to the bank to deposit the cash in their hand.
- Strengthen the banking system – Demonetization leads to more amounts being deposited in Bank Account due to which cash laying out of economy came into circulation. The more amount of money deposited in the bank account enhances the liquidity position of the banks, which can be utilized further for lending purposes.
- Financial inclusion for Jan Dhan account holders – Though Government opened Jan Dhan accounts for financial inclusion purposes, the majority of people hesitate to keep money in the bank. But, after demonetization, people started depositing their cash into banks thereby strengthening the Indian banking system, the citizen is and will become beneficiaries of financial inclusion!
- Reducing of Hawala Transactions – Hawala is a method of transferring money without any actual money movement. This kind of Hawala routs is used to facilitate money laundering and terrorist activities. As the demonetization happens, hawala operations came to an end.
- Higher Tax collection – Demonetization leads to higher tax collection compared to earlier as businessmen are depositing lots of cash lying with them as current year income with advance tax. Many people cleared their pending property tax, electricity bills and telecom bills to utilize their old currency notes.
- Decrease in overall corruption – Demonetization in India reduced the corruption in India up to a certain level and for a considerable period of time which in return made Indian Economy the first choice of foreign investors.
Negative effects of Demonetization
- The excessive burden on Bank Employees – After demonetization, there was an excessive pressure on bank employees to cope up with the situation and they were not able to satisfy the need of people even after working for hours and hours.
- Crash in Stock Market (Both NSE and BSE) – The stock market indices dropped to an around six months low after the declaration of Demonetization. The day after the demonetization was announced, Bombay Stock Exchange crashed nearly 1689 points and National Stock Exchange plunged by over 540 points.
- Affect on agricultural industry – As the transaction in Indian agricultural sector is heavily dependent in cash, and due to the scarcity of new banknotes, many people were unable to purchase seed also. In fact, farmers and their unions conducted protest rallies in Gujarat, Amritsar and Muzaffarnagar against demonetization.
Though the objectives of Demonetization were to eliminate black money and other corruption issues, it was not as successful as it should be. However, demonetization was able to fulfill some other objectives like to destabilize separatist terrorist organizations and to reduce crime.
Since demonetization happened in 2016 was an important event in Indian history, thus an essay on demonetization is a much-needed topic for the students. And to fulfill this requirement, we team GuideToExam tried to give an idea of demonetization essay to the various levels of students according to their levels.
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.