Essay on Demonetization

Essay on Demonetization: We are here to share with you an essay on demonetization for class 1, 2, 3, 4, 5, 6, 7, 8, 9,10,11 & 12 students. Demonetization means to null the use or value of a currency note. It was done in India by the P.M. of India in 2016.

Latest Essay on Demonetization for School Students.

Essay on Demonetization | 100 Words


Demonetization means to null the use and value of a particular currency note or coin.

As currently, it was done by the Honourable Prime Minister of India Mr. Narendra Modi by voiding the Rs 500 and 1000 currency notes on 8th November 2016.

The reason behind this is corruption in India.

As people stored black money in the form of Rs 500 and 1000 currency notes.

And Demonetization also boosted the cashless economy or Digital economy of India.

As bringing new Rs 2000 currency note in a huge amount is difficult. So due to lack of cash, people tried the digital method of transaction and tried them.

The only demerits of Demonetization are the lack of cash in banks, and at the time of demonetization, people also have to stand in a row outside the bank to change their currency.

Essay on Demonetization in English | 200 Words


Demonetization means to null the use and value of a particular currency note or coin.

As currently, it was done by the Honourable Prime Minister of India Mr. Narendra Modi by voiding the Rs 500 and 1000 currency notes on 8th November 2016.

The reason behind this is corruption in India.

Before Demonetization, there was a high amount of black and counterfeit currency notes in the India market.

And with that, there is a lot of untaxed currency that is there in the market of India and available with many individuals and agencies in the form of hard cash.

Getting that much of counterfeit and untaxed money back into the mainstream or the hands of government was necessary to strengthen the nation’s economy and banking system.

As people stored black money in the form of Rs 500 and Rs 1000 currency notes.

And Demonetization also boosted the cashless economy or Digital economy of India.

As bringing new Rs 2000 currency note in a huge amount is difficult. So due to lack of cash, people tried the digital method of transaction and tried them.

Even though there are suffering and agony among the masses right at the moment, but the forecast is that its benefits will be seen in the long run.

The only demerits of Demonetization are the lack of cash in banks, and at the time of demonetization, people also have to stand in a row outside the bank to change their currency.

Essay on Demonetization in India | 500 Words


Introduction

Demonetization refers to the withdrawal of currency, coin, or other valuable from being used as legal tender.

The possessor of the currency has no option but to get it exchanged in a bank, thus, declaring it to the government and paying necessary taxes.

Merits of Demonetization

The government of India, in a historic decision, demonetized the currency note of Rs500 and Rs1000 on 8th November 2016.

Before Demonetization, there was a high amount of black and counterfeit currency notes in the India market.

And with that, there is a lot of untaxed currency that is there in the market of India and available with many individuals and agencies in the form of hard cash.

Getting that much of counterfeit and untaxed money back into the mainstream or the hands of government was necessary to strengthen the nation’s economy and banking system.

This move will stop the circulation of fake currency.

By banning the high value notes like Rs500 and 1000 will eliminate the circulation of fake currency notes as most of the counterfeit currency notes put in circulation are high value.

The demonetization of currency will force people to pay Income Tax Returns.

Most of the people who have been hiding their income to save tax are now forced to come forward to declare their income and pay tax on the same.

Even though deposits up to Rs 2.5 lakh will not come under Income tax screening, individuals are required to submit PAN for any deposit of above Rs 50,000 in cash.

The ultimate objective is to make India a cashless society.

All the monetary transaction has to be through the banking methods and individuals have to be accountable for each penny they possess.

It is a giant step towards the dream of making a Digital India.

Demerits of Demonetization

Though the move of demonetization was supported by the banks and some international commentators, it also faced a fair amount of criticism from various gangs inside India.

Many opposition parties deemed the move as useless and unnecessary.

The critics were of the opinion that demonetization will hamper economic growth, rather than boosting it.

Long queues of people outside the banks after demonetization were made an issue.

They claimed that the real possessors of black money had somehow already convened with the banks to exchange their illegal currency, thus resulting in the shortage of cash.

The government was also accused of poor planning and management.

The government is finding it hard to implement this policy.

It has to bear the cost of printing the new currency notes. It is also finding it difficult to put new currency into circulation.

The 2000 rupees note is a burden on the people as no one likes to do the transaction with such high-value currency. Some critics think it will only help people to use black money more easily in the future.

Conclusion

Whatever might have been the controversies surrounding the demonetization and whatever might be the claims which are made by reviewers, there is no denying the fact that the decision was taken in the national interest.

Though it might have missed achieving some goals, it did hit some significant ones like – bringing black money into the banks, reducing inflation, curbing anti-national, illegal activities and making India a digital economy.

Even though there are suffering and agony among the masses right at the moment but the forecast is that its benefits will be seen in the long run.

Best Essay on Demonetization | 1000 Words


Introduction

Demonetization refers to the withdrawal of currency, coin or other valuable from being used as legal tender.

In this process of Demonetization, a particular unit of currency is completely banned for the use of the general public and government.

Demonetization of the currency means discontinuity of the particular currency from circulation and replacing it with a newer one, means the monetized currency money loses its worth or value in the market.

The possessor of the currency has no option but to get it exchanged in a bank, thus, declaring it to the government and paying necessary taxes.

Merits of Demonetization

The government of India in a historic decision demonetized the currency note of Rs500 and Rs1000 on 8th November 2016.

Prior to Demonetization, there was a high amount of black and counterfeit currency notes in the India market.

And with that, there is a lot of untaxed currency that is there in the market of India and available with many individuals and agencies in the form of hard cash.

Getting that much of counterfeit and untaxed money back into the mainstream or into the hands of government was necessary to strengthen the nation’s economy and banking system.

This move will stop the circulation of fake currency.

By banning the high value notes like Rs500 and 1000 will eliminate the circulation of fake currency notes as most of the fake currency notes put in circulation are high value.

The move has generated interest among the people who have opened Jan Dhan accounts under the Prime Ministers Jan Dhan Yojana. They can now deposit their money or cash under this scheme and this money can be used for the developmental activities of the country.

The demonetization of currency will force people to pay Income Tax Returns. Most of the people who have been hiding their income to save tax are now forced to come forward to declare their income and pay tax on the same.

Even though deposits up to Rs 2.5 lakh will not come under Income tax screening, individuals are required to submit PAN for any deposit of above Rs 50,000 in cash. This will help the income tax department to track individuals with high denominations currency.

The ultimate objective is to make India a cashless society.

All the monetary transaction has to be through the banking methods and individuals have to be accountable for each penny they possess. It is a giant step towards the dream of making a Digital India.

Bringing Untaxed Money to the Mainstream

Prior to the demonetization, there were many fairs players in the Indian economy who were out of the precincts of the banking system. These constituted a small farmer, businessman and there was a need to bring them back into the mainstream.

Curbing Corruption

Corruption deals with unaccounted and undeclared money.

There was a huge amount of money circulated in India in the form of Rs 500 and 1000 currency notes, for corrupt deals in private as well as government sectors.

The presence of this unrecorded money in high amounts, not only was fuelling corruption but also making the value of Indian currency (Rupee) weaker.

Demonetization was the strong need of the time, to curb corruption as well as to strengthen Indian Rupees in the International Market.

Boost to Cashless Economy

Demonetisation was effective in many ways. Initially it di lead to chaos the confusion due to the shortage of new currency and long queues in banks and ATMs: nevertheless, the decisions had some positive effects too.

Indian Demonetization of 2016 was effective in making India a cashless economy.

With the scarcity of cash and due to the long queues outside banks, people and businessmen turned towards digital transactions.

Any Digital transaction if dome comes in the radar of government and government will have its information, ultimately resulting in more tax payment and less circulation of unaccounted money in the market, subsequently, resulting in strengthened banks and improved economy.

Gave way to Digital Transaction

Digital transactions in many cities had doubled after demonetization happened. Digital payment gateways like Paytm and MobiKwik recorded a remarkable increase in the number of users.

Apart from an increase in the digital transactions throughout India, there was also a high amount of deposition of old currency, bringing it back into the mainstream which was hidden from the government of India.

According to the records more than three Trillion Rupees were deposited in banks during the period of demonetization which is a huge amount.

Demerits of Demonetization

Though the move of demonetization was supported by the banks and some international commentators, it also faced a fair amount of criticism from various gangs inside India.

Many opposition parties deemed the move as useless and unnecessary.

The critics were of the opinion that demonetization will hamper economic growth, rather than boosting it.

Long queues of people outside the banks after demonetization were made an issue.

They claimed that the real possessors of black money had somehow already convened with the banks to exchange their illegal currency, thus resulting in the shortage of cash.

The government was also accused of poor planning and management.

A Public Interest Litigation (PIL) was also filled by Indian National League, in Madras High Court, requesting abradant of demonetization decision; however, the Court refused to interface in between the government’s monetary decision.

The government is finding it hard to implement this policy.

It has to bear the cost of printing the new currency notes. It is also finding it difficult to put new currency into circulation.

The 2000 rupees note is a burden on the people as no one likes to do the transaction with such high-value currency. Some critics think it will only help people to use black money more easily in the future.

Conclusion

Whatever might have been the controversies surrounding the demonetization and whatever might be the claims which are made by reviewers, there is no denying the fact that the decision was taken in the national interest.

Though it might have missed achieving some goals, it did hit some significant ones like – bringing black money into the banks, reducing inflation, curbing anti-national, illegal activities, and making India a digital economy.

Even though there are suffering and agony among the masses right at the moment, but the forecast is that its benefits will be seen in the long run.


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