Demonetization refers to discontinuing of current currency units and replacing those currency units with new currency units. It is a major decision and it impacts all the citizens of the country because overnight all the money you have become a piece of paper which has no value if you do not exchange it with new currency units or deposit it in the banks. In order to understand demonetization better let’s look at advantages and disadvantages of demonetization –
Advantages of Demonetization
- The biggest advantage of demonetization is that it helps the government to track people who are having large sums of unaccounted cash or cash on which no income tax has been paid because many people who earn black money keep that money as cash in their houses or in some secret place which is very difficult to find and when demonetization happens all that cash is of no value and such people have two options one is to deposit the money in bank accounts and pay taxes on such amount and second option is to let the value of that cash reduced to zero.
- Since black money is used for illegal activities like terrorism funding, gambling, money laundering and also inflating the price of major assets classes like real estate, gold and due to demonetization all such activities will get reduced for some time and also it will take years for people to generate that amount of black money again and hence in a way it helps in putting an end this circle of people doing illegal activities to earn black money and using that black money to do more illegal activities.
- Another benefit is that due to people disclosing their income by depositing money in their bank accounts government gets a good amount of tax revenue which can be used by the government towards the betterment of society by providing good infrastructure, hospitals, educational institutions, roads and many facilities for poor and needy sections of society.
Disadvantages of Demonetization
- The biggest disadvantage of demonetization is that once people in the country gets to know about it than initially for few days there is chaos and frenzy among public as everybody wants to get rid of demonetized notes which in turn sometimes can lead to law and order problem and chaotic situation especially in banks and ATMs which are the only medium to change the old currency units to new currency units.
- Another disadvantage is that destruction of old currency units and printing of new currency new units involve costs which has to be borne by the government and if the costs are higher than benefits then there is no use of demonetization.
- Another problem is that majority of times this move is targeted towards black money but if people have not kept cash as their black money and rotated or used that money in other asset classes like real estate, gold and so on then there is no guarantee that demonetization will help in catching corrupt people.
As one can see from the above that demonetization has both advantages and disadvantages and it is up to the government to see and analyze all the pros and cons and then decide whether it is beneficial to go ahead with demonetization or not.
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a Very GOOD step to curb the black money and black money holders.
it is a verry good step to devolopment of india
anyhow in our country india..there are strong chances for the betterment of the economy… ok…we all know only the mighty and super-duper-extraordinary rich people can escape the so called trap which is thrown upto the dishonest people of india by the indian govt…
VERY FANTASTIC DECISION OF MODIJI ,THIS WILL END OR REDUCE TERRORISM
support modi he is the man who brought revolution in economy & development.
This is a great move for the government to uplift the fiscal situation.
Very good move by our prime minister but plz do fix up the cash change problem at rural areas so that no Arvind krijival nor Rahul Gandhi can create unnecessary problems.
Great step by Mr. Modi
No doubt that it’s a great move to control black money and I would congratulate our PM for his courage. Unfortunately, due to lack of availability of new currency people are facing lot of problems, for which the government should find immediate solution.
Well done Our P.M… Only you can take such bold step..
wel done our PM MOdijii
Yes its a great move….. i am not sure about the black money and its holders, but black activities like terrorism,Gambling,corruption etc will be substantially get reduced. this step will be effective only when further all the transactions are made legally and proper systems are implemented to control it. otherwise its just another wrong decision and may encourage the corruption as those who lost the huge corrupted money due to demonetization may restart to collect the new notes in the name of corruption.
I support our PM for his grt step for the betterment of the society i am 100% sure that we can proudly say India is a devoloped country
It s a great step but my friend every benefit comes with a challenge!If you want to encash this benefit then bear some problems.The result is good, I guarantee you.
i really like the idea of demonitization,but it has led to the suffering of poor people and lot of business and agricultural disasters..is there any solution for that? even though we say demonitizationit is good for future, what is the use if we don’t curb the present problems?
Brilliant and Brave Decision. Long time India didn’t see a true PM…. I Support Modi ji…
Ok i agree good step then what about unaccountability transactions right from door step of house like chits,gas delivery boy tips, hotel boy tips,finances, non monitaring ticket issuing chambers, real estate business lenders buyers, gold purchases, immovables properties, assests, private businesses , traffic police unauthorised collections, train tte collections, agents, hawkers, middle man ship, brokers etc etc first of all i request curb illegal and unauthorised unaccountability things right from ground level please think and calculate their incomes which has no account only sufferers are employees and common man without side income, farmers and daily wage coolies.
It was best step taken by pm and he is first prime minister who had guds to take this step or else congress govt the faluires couldnt have much guts to think about it I support modi and also give advice to support him
So now I understand why our modiji will take action on people having so much properties.This is going to be a big change.Thanks modiji.
Itis good step taken by Narendra Modi
It is a great step but providing new currency in the rural area little bit low needs to be increased by the govt
it’s too great step. but i m mango man n want result in future.
very good step by our prime minister……..I support my PM
it is a very good step
Very good step towards betterment of the society
It is a good step to take our India some steps ahead.I support my IndiA’S pm Mr modi ji
Extremely worried about the suffering of common people.
Why demonetization can be the only step to arrest black money ?
There are Govt departments to dig out the persons and arrest black money.
Certainly its a good step to reduce terrorism, and bar fake currency note.
But lot of money exchange on commission basis are taking place.Huge amount deposited as available on different account.
What is the next step of Govt ? will the total amount be considered as black money ? Then how can we say how much is black and how much hard earned money. That needs to be published.
It can never be said that demonetization is the only step to catch hold of black money and if so then after every specific periods this step needs to be taken ?
Moral character of people, as far as possible less cash transactions and over & above accountability of depts to be fixed giving specific target to catch hold of black money.
Only the salaried people of govt, PSUs are taxed but very little has been done to bring more people in the tax bracket who are earning in multiples.
Demonetization can not be the only way out to arrest black money.
It can only help to reduce terrorism and fake currency note.
What the Govt depts are doing to arrest Black money ?
Sufferings and death of common people are giving too much pain.
Please publish the amount of black money and hard earned money out of total deposit in banks and tax collected on such huge amount.
Also furnish the money exchange taken place on commission basis.
Home work is not satisfactory / convincing before the announcement made.
Yes,I also agree that PM MODI JI done a great work. Well done sir. We all Indian are very proud that a such great person is our PM.;-)
It is big and good step of our India but some problem created like crisis of 100 rupees not and standing 10 to12 hours In ATM & BANKS if government even do before demonitization then it will not happen problem so it is good& bad both step created
Though a very good step but poorly managed by government officials .Hope better sense prevail and every person involved in the transition will impart their best to make it a success. As it take a lot of courage to take such a dicison .Make it a success . Jai hind .
i support modi
It is a good step. But still, we see so many people were caught carrying new currency in many crores. I think government have to take necessary steps to control the flow of money towards this type of people. It is necessary for the government to make sure that the money should be in reach of every person equally, from rich to poor.
Its a very good step to uproot the deeply rooted corruption in the society……..
I SUPPORT PM MODI……
I total support it , coz terririsem gets reduse for some time
Modi doing a great job
modiji is a real hero because he knows how to rule and remove black money from society. Please support him for this powerful action against terrorism and corruption
Modiji is a real hero for corporates:-
1.Top corporates of our country got character certificate from Modiji that they had no black money.
2. Write off of corporate loans (loan waived by the Govt. after demonetisation), I think it will be larger than the black money finally will have recovered.
3. Another doubt is againg bank will give loan to the same corporates.
4. All black money will go to that corporate’s pocket.
I think above are the main purpose of demonetisation?
It is a very best decision taken by our highly respected prime minister I think it reduce terrorism and help to be us a chasless……
I think it is temporarily good for our country to reduce forged currency and terrorism. Other key things to remember -100 death of common citizen and how much pain we have to tolerate that we do not know, about people of our country who works in unorganised sector and it will be about 80%.
Are not they sufferring without cash ?
Gov. formed by the people of our country and must think for them. Govt. have any right to give pain for any moment to the common citizen? If the decision was political?
It is more effective step to control black money.
One of the courageous decision taken by a courageous leader. This is not a common decision which every leader can take it, Thnx a ton Mr. Midi Ji.
Yes. One of the biggest and major steps ever dared by any politician for the better future of nation. Modi ji. Hats of. We whole heartedly support you foe our better future.
My request to Modi ji
Please make 100% cashless society. every citizen should be given a swipe machine as like a debit card given to them previously. Every one should have a payment accepting device and even one rupee that need to be given should go through these, even if we are paying it to a cobbler, vegetable vendor or to a political party.
And government should take the relevant tax for this transaction directly without asking the payer or beneficiary. Now abolish the PAN type of taxation where it incurs 20%, 30% etc tax slabs to all the employees, professionals. This is too high for any citizen to pay so every one is trying to skip paying the hard earned money, and this becoming black money.
Modi ji once you start taking tax from every transaction that will incur more money than the tax slabs, as there are may transactions below the 1 Lac income. There are many transactions done which are unaccountable such as road side business, small retailers etc. To completely remove the black money I feel this is the only possible way.
modiji had done a great job.
Very good step taken by the govt. But the it is a fact that the govt.’s lack of understanding and preparation has made the common man suffer the most. Things have not become normal even after 50 days.
A nice and brilliant step that any prime minister could take up.it will surely lead to the betterment of country.
Demonitization is a very good step but very badly and carelessly implemented. The release of 2000 note as replacement is a bad move. A person who kept a lakh of rupees as black money is keeping two lakhs now. Replacement of old notes with new notes has been done by obtaining photo copies of Adhar cards of poor villagers and with the connaiyance of bank officials, mainly by politicians and business men.Exchange in itself is a bad decision. Instead mandatory deposit in the bank or post office accounts would have brought 100% black money into circulation.
I think demonetization is taken as remedial desperate option which will be definitely become a major weapon for the Indian govt. to reduce the unsustainable money and also demonetization will be definitely doing an impressive growth of GDP which is beneficial for long term five Yr. Plan .its a great job done by our Indian govt .
People in India are smarter than you think.
No use of demonetization as most of the cash in circulation has come back into the banking system and the amount spent in printing new notes is higher.