Demonetization: Discuss its Success & failures
Discuss Demonetization
Read group discussion points for extempore topic “Demonetization: Discuss its Success & failures“.
Page Highlights:
- The positive impact of demonetization
- The negative impact of demonetization
Extempore Topic: Demonetization: Discuss its Success & Failures
About the topic:-
On 8 November 2016, Prime Minister Narendra Modi announced those currency notes of Rs 1000 and Rs 500 denomination will not be legal tender. This was done to unearth black money and reduce the use of illicit and counterfeit cash to fund illegal activity and terrorism. But it has many pros and cons too.
Demonetization: Its Success
- The main theme behind this demonetization is to flush out the black money.
- The cost of living is reduced as loans became affordable.
- With demonetization, digital transactions have improved a lot.
- The terror rates across the border and in the other parts have definitely increased, which is evident by the cut in the supply of hard cash for their transactions
- This demonetization has further continued with denominations of Rs.100, and Rs.50 has made it clear to take steps against money laundering.
- The track systems were enabled and has a note for the movement of every rupee.
- The banks that suffered from shorter deposits are fine now and ready to give loans at a lesser rate of interest.
- So, the government has the clear footprints of the depositors who entered the banks for changing the notes.
- Over 95%, this demonetization has flushed out the black money.
Conclusion
Due to this demonetization, digital transactions came into picture and some how the black money got flushed out.
Demonetization: Its Failure
- The cost of demonetization is higher than the positive impact.
- Local vendors and small businesses have faced many problems due to the lack of availability of cash.
- Many Indians who didn’t have bank accounts also suffered a lot.
- Demonetization of Rs.2000/- note made another problem. Since there were no new 2000/- rupees, one can only take that in the form of 500/- and 1000/-.
- Real estate has a major impact since it is completely based on daily wages.
- The GDP of India has reduced due to this demonetization.
- There is no rule that black money should be in liquid cash only, it may be in different forms. The government has failed to get them.
Conclusion
Considering the above points, it can be concluded more failure than success since it didn’t reach the final goal and also caused many problems to the people.
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