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9th November, 2016: Daily Summary and Analysis of The Hindu
Demonetization means to remove the legal status of a currency tender. Government of India demonetized the legal tenders of INR 500 and INR 1000 from the midnight of 8 November. This move is bound to have a huge positive outcome which is described as follows – 1. Income tax collections will increase as everyone has to deposit their cash with banks which in turn will scrutinize the sources of income and income tax history 2. People who are having unaccounted wealth have to come out clean as getting their cash converted to replacement tenders will be extremely difficult 3. This will drive India towards a cashless economy as everyone will be wary of keeping cash with them 4. It will control the menace of counterfeit currency and thus reduce the damage on the economy as the new tenders will have improved security features which will be hard to copy There are some short term inconvenience and cost which will result as part of this measure. Printing new currency notes will cost the Government around 12000 crore Indian rupees. Common people who have collected hard earned cash at their homes will feel anxious till the time new tenders become accessible through banks or ATMs. This move of Government can be termed as historical as it has the potential to curb widespread corruption and thereby increase the growth rate by leaps and bounds. To ensure that this currency reform is a success, it is the responsibility of every citizen to embrace it wholeheartedly. There will be small hiccups in the initial days, but things will become normal and most importantly level playing as people with illicit wealth have to start fresh and compete with others through hard work and honesty. .
Rashmi Bista
3 years ago
thank u for ur answer. good one