D for demonetization=D for development/destruction?

Bonjour! Welcome to this week’s hot topic on “Talk Back Thursday” which is on one of the latest changes which has ripped us all.As we head towards the end of 2016, let us know in details about demonetization.Demonetization is the act of stripping a currency unit of its status as legal render. Demonetization is necessary whenever there is a change of national currency. The old unit of currency must be retired and replaced with a new currency unit.

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There are multiple reasons why nations demonetize their local units of currency. Some reasons include to combat inflation, to combat corruption, and to discourage a cash system. The process of demonetization involves either introducing new notes or coins of the same currency or completely replacing the old currency with new currency.

On 8 November, Prime Minister Narendra Modi’s announcement of demonetizing ₹500 and ₹1,000 currency notes in order to rid India of the menace of black money was widely welcomed.These notes accounted for 86% of the country’s cash supply. The government’s goal was to eradicate counterfeit currency, fight tax evasion, eliminate black money gotten from money laundering and terrorist financing activities, and promote a cashless economy

The later results were what you would expect: confusion, chaos, and fear. The past couple of weeks have been an emotional roller coaster. From being excited and hopeful that black money hoarders will finally be caught to being frustrated and tired of waiting in long queues outside banks and ATMs, we’ve experienced many emotions in a very short time span.

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While there’s hope that black money hoarders will be brought to justice, precious lives of innocent and poor people simply trying to exchange money have been lost. Arguments have been made, both for and against demonetization as a policy to combat black money. But illustrators and cartoonists, wielding their pens and brushes, seem to have had the last word.

Let us have a look at the advantages and disadvantages of this huge step and decide are we for it or rather against it.

PROS:

  • Massive decline in black money: This decision is really a pain for black money holders having trucks of money undeclared and enjoying without paying any tax. All Black Marketers and Corrupt officers are in threat.
  • Almost end of Fake currency racket initially:  If implemented correctly and effectively then it will result in end of fake currency racket as most of the fake notes are of Rs500 and Rs1000 but later criminals will make fake Rs2000 note, which has actually begun.All fake currencies will be swiped in one shot is the biggest benefit of demonetization.
  • Obstacle for terrorism: There is big fall in terrorism activities in Jammu and Kashmir is biggest demonetization advantage.
  • Reduce in corruption for few months:Shameless corrupt traitors will find other methods but it will take time.There will be proper cash in the banks and condition of bank will be going better off.
  • Fair Election:-we all know how much black money is used by political parties at least for upcoming 5 state election it will be very tough task to use trucks of money in election like EC caught in Tamil Nadu.Cw9JFR6VEAADLMu.jpg

CONS:

  • Inconvenience to people: burden in exchanging notes by common people.All India is in line outside Banks and ATM’s for Cash.People are waiting for more than 5 to 10 hours to get cash from Bank. Still after waiting some people are no getting Cash. Harassment to public is a big cons of demonetization in India. ATM’s are not calibrated according to New 500 and 2000 rupee note.
  • Loss to common people: Till 16th of November 2016 there is a report of death of more than 35 people due to cash problem. Many people have fake currency that it unintentional or earned by hard work and they are using it without knowing it.Now banks will refuse to take fake money it becomes a direct loss for innocent people.
  • People are getting 2000 rupee note but not getting the change in the market against this note. Small currency is threatening Disadvantages of Demonetization.
  • There can be a problem of Law and order in the country. This can affect the economy of our country.
  • All families where there is marriage in the month of November are in big trouble. Demonetization casts shadow on wedding season.

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So i would like to conclude by telling that it’s a masterstroke by Modi and it’s success highly depends on it’s implementation. Mr Modi, in a rousing rhetorically rich speech, requested the nation for 50 days to launch this self-labeled war on black money. He asked the people to make short-term sacrifices in the interest of long-term gains by virtue of all the money that will be seized from hoarders. Both the activist and the non-activist sections of social media have equally raved about or ripped apart this rhetoric.

While it is too soon to declare whether the long-term gains are indeed forthcoming, the “short term” sacrifices have been more than just significant. They have been immensely painful.What do you feel about this? Are you for demonetization or completely frustrated by this? Do you feel it is a golden step for eradicating corruption or just another way to torture common man? Please share your reviews with us. Next week we will be back again with some amazing topic to share with you. Till then, ADVANCED NEW YEAR WISHES. We hope the coming year will be with less surprises and prosperous indeed.

Draft by:

Ginu Abraham

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