Demonisation and it's impact on Indian economy

Demonetisation was an  important step taken by our government which aimed to decrease the amount of black money and corruption in Demonetisation was one of the crucial and most our country. The government followed a series of procedures in order to implement this throughout  the country. The first and the foremost step was to ban the old style of notes and to produce sufficient amount of new notes, then the government made the rule that each and every person of the county whoever it may be has to stand in the queue in order to  exchange their money, then the government placed limitation on the amount of money to be exchanged as a result it was difficult for the business man and officials who were involved in corruption to exchange a big amount of their black money so they were bound to destroy this money by throwing it in rivers and burning it. This decreased the amount of black money in our country although it was a bit  difficult for the common man but they bore it in order to develop our country. So the co-operation of the common man also helped the government .

The term demonetarisation is not new to Indian economy. The highest denomination of currency printed was the 10000 rupees note printed by RBI in 1938 and again in 1954 but they were demonetised   in January 1946 and again in 1978. 

The Reserve Bank of India manages currency in India and derives its role in currency management on the basis of the Reserve Bank of India Act, 1934 and a new redesigned series of Rs 500 banknote, in addition to a new denomination of Rs 2000 banknote is in circulation since November 10, 2016.The new redesigned series is also expected to be introduced to the banknote denominations of Rs 1000, Rs 100 and Rs 50 in the coming month

However, with the latest round of demonetisation, the common public and bankers are undoubtedly facing hardship since more than 85 per cent of currency in circulation has been rendered illegal in one single stroke. But  according to me it was very helpful for the economy which decreased the amount of black money in our country which will help to maintain equality in the country.

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Comments
Ashutosh Mishra - Nov 1, 2019, 1:27 PM - Add Reply

Nice information.

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