In this Demonetization Essay, we have given detailed information on the topic of demonetization in India (note bandi).
Demonetization Essay – need, aim, and how many times demonetization has been done in India, are some of the topics covered in this article.
Advantages and disadvantages of demonetization have been explained in detail.
Short essay on demonetization :
When the government legally closes the old currency and introduce a new currency, it is called Demonetization. In this short Essay on Demonetization, we had discussed the demonetization in details.
India is a developing country which is touching the heights of development day by day. In such a situation, the decision to ban notes was a very difficult decision, which was taken by some governments.
In such a situation, many common people suffered but problems like corruption and black money have reduced, due to which it can be said that a new revolution of reforms has come in the economy of India.
Importance of Demonetization is discussed in Demonetization essay in 150 words.
After banning the note, citizens are given a limited time limit, under which they can go to the banks and exchange the banned notes and get new notes of the same price.
Demonetization has put a check on black money, terrorism and drugs and has also led to digitalization of India as the entire transaction was digital and has proved helpful for the country.
Essay on demonetization in 100 words:
In this Essay on Demonetization, we have a provided detailed discussion on the topic of demonetization (note bandi) in 100 words.
What is Demonetization explain?
Demonetization means the closure or ban on the use of notes by the government in any country so that they remain of no use. Neither any transaction can be done from them, nor can anything be purchased.
In other words – when the old notes and coins are discontinued and new notes and coins are introduced it is called demonetization.
Impact of Demonetization in India is discussed in Demonetization essay 500 words.
Demonetization is a process in which the government closes the old currency prevalent in the country and implements the new currency. Most big notes are exchanged under demonetization.
Old notes are exchanged from banks and ATMs. The exact time is set for the exchange of notes. Notes can be exchanged with the help of a bank.
Demonetization essay in 150 words:
When a Country’s government legally closes an old currency, it is called as Demonetization. In this Demonetization essay, we had discussed the “Importance of demonetization” in detailed.
Importance of demonetization:
First of all, the question arises in the mind of everyone that why any country needs demonetization?
The need for demonetization comes to any country when there is an excess of black money and fake currency business. In such a situation, people started doing more cash transactions to steal tax, which mostly consisted of big notes.
A lot of fake notes were also found before the note closure in 2016 which was spoiling our economy. Demonetization is also needed to ensure the country’s economy.
We had discussed Demonetization in India, history in Essay on demonetization in India 200 words.
Demonetization can be used only to control corruption, black money, fake notes, inflation and terrorist activities.
Economists believe that in terms of security, some changes should be made in the notes every 5 years, although closing the notes itself is a big change in itself.
The number of fake notes had increased so much that news of getting fake currency from bank and ATM was also found.
Essay on demonetization in India 200 words:
In this process of demonetization, a particular unit of currency is completely banned for use by the general public or members of the government. In this Essay on demonetization, we had discussed Demonetization in India history.
Demonetization in India history:
(i) Demonetization was not new to our country of India. For the first time in our country in 1946, it was decided to discontinue 500, 1000 and 10 thousand notes.
Even in the 1970s, the Wanchoo Committee on Direct Taxes Enquiry suggested demonetisation, but the suggestion became public, which led to the demonetisation.
(ii) In January 1978, the Janata Party government of Morarji Desai made law and closed the notes of 1000, 5000 and 10,000. However the then RBI Governor IG Patel opposed this note-halt.
(iii) In India, in 2005, the Manmohan Singh Congress government demonetized 500 notes before 2005.
(iv) In 2006 also Narendra Modi government decided demonetisation of 500 and 1000 notes. These two currencies occupied 86% of the Indian economy. These notes were the most used in the market. For this reason, it led to such a huge disorder and consequence.
The whole of India became ‘cashless’ during demonetisation. During the demonetization, people faced many problems.
Demonetisation did give people trouble for a few days, but it has also benefited vastly. The plan for demonetisation has not been as successful as it should have been, but to a large extent, it has benefited immensely.
Demonetization essay in English 250 words:
In this Demonetization essay in English 250 words, we had discussed Demonetization in India 2016.
Demonetization in India, 2016:
The objectives announced by the government behind the Demonetization policy are as follows:
First of all, India is trying to get rid of corruption. It is an endeavour to create a cashless society and digital India.
The government has taken some steps in this direction, as announced on 8 November 2016.
As a first step, the government of India asked the peoples to create bank accounts under the “Jan Dhan Yojana Scheme”. He asked them to deposit all the money in their new accounts and deal with their prosperities through their banking practices.
The second step is the government announced the income tax on the initiative and give the 30, October 2016 was the deadline for them. With this method, the government was able to increase the yield on a large scale.
However, many people still have black money and the government have to deal with it, so they announced the demonetization of 500 and 1000 notes.
Demonetization is a financial reform in the country, but this decision has many merits and demerits.
While some people were saying Prime Minister Narendra Modi’s demonetization plan was incorrect, the Opposition party was stating that his decision was unsuccessful and the country was lagging behind, but the Prime Minister remained adamant on his decision.
Demonetization Essay in 300 words on demonetization:
In this Demonetization essay, we had discussed Demonetization effects.
The demonetization will help India to get rid of corruption. Corrupt practices involved in bribery should be avoided as it is difficult to hold their account secure.
This step had help the government track the black money. Individuals have to show their income and submitted PAN for any legal financial transaction. The government can get an ITR for a tax-paying on income.
The move stops funding due to improper cash flows resulting from illegal activities. Criminal actions such as currency terrorism, etc., to ban high prices.
Merits & Demerits are described in Demonetization essay 500 words.
Higher value payments for black money laundering will also be restricted.
Now such kinds of activities had stopped and the Income Tax Department can track the money laundering business.
After this step, the circulation of fake notes was stopped. The maximum fake currency is kept in circulation and the ban on notes of 500 and 1000 will end the operation of fake notes.
Now they can deposit their money in “Jan Dhan Bank Account” under this scheme and this money can be used for the development work of the country.
The demonetization policy has forced the people to file ITR. Most of the people, who were hiding their income, are forced to announce their earnings and pay taxes.
Although a deposit amount of up to Rs 2.5 lakh will not be included in the Income Tax, individuals will have to deposit money over Rs 50,000. The Income Tax Department will be able to track the persons with high currency mobility.
Demonetization essay 500 words:
In this Demonetization essay, we had discussed the Impact, Advantages & Disadvantages of demonetization in detail.
Merits of demonetization:
This decision made by the government attacked all the reasons that are weakening the country. During the time of note-ban, people had to face a lot of trouble but there have been many benefits as well –
1. When people went to change money in banks, then every information of their money went to the government.
Those who got more money from the income tax were investigated by the Income Tax Department and the black money held by many people was caught.
For Demerits read full Demonetization essay in 500 words.
2. It is black money that promotes terrorism, non-violence. Terrorism has also decreased due to less black money.
Because the black money that they were using to spread terror was left to paper only due to demonetization.
3. Due to demonetization, a lot of black money has gone to the government’s fund.
Due to which the government has increased funds and the government has used those funds in the development of the country.
4. Due to the liquidity in banks, interest rates have also come down.
5. Due to the money in the banks, people are also given a large amount of loan so that they can establish industry, thus employment has also increased.
6. Due to demonetization, the common people have realized their responsibility towards the economic tax and it is a big thing.
7. All online, digital payments are being made due to demonetization. Even the one with tea, grocery, Xerox, and printing, also now pays online.
8. Due to demonetization, the work of printing fake notes has also stopped, due to which large amounts of fake notes have been removed from the country.
Demerits of demonetization:
1. Tourism destinations suffered the most due to lack of local money. Many people also cancelled their tour of India. There was a slowdown in work.
2. There is a problem in everyday life of common men. Standing in front of banks and ATMs for hours, faced hospital bills, electricity bills, rental problems, and many more.
3. People could not do weddings with as much ceremony as they thought.
4. In today’s time, many questions are being raised on demonetization. Some people say that demonetization has failed. For Impacts of demonetization, read the whole Demonetization essay in 500 words.
It is a scheme in which black money is made white. Some people say that there has been no benefit. India’s economic growth rate has come down from 7.5 to 6.3.
5. a lot of money was spent printing new notes but terrorist funding is still ongoing. We cannot even avoid those allegations, perhaps the level that was expected from the note-ban was not achieved.
Impact of demonetization in India:
Demonetization was not as successful as the government had hoped. But whatever results have come to contribute to the interest of the country –
The black money corrupt people kept cash in the form of 500 and 1000 notes, in this time it has become a mere paper.
There is no cost to black money. Because of the demonetization, the corrupt people had to surrender their hidden black money to the government.
Many people burnt black money and many threw it away.
The notes which were fake were of no use in the market. Due to which the loss to the country has reduced considerably.
All online, digital payments have started due to demonetization.
Due to demonetization a lot of money has been collected in the government fund which is used for public welfare.
Demonetization essay conclusion:
Demonetization has happened many times before in India. The need for Demonetization has been felt from time to time. The note-bandi has given the country, momentum for development.
Demonetization and GST are very big decisions. Hardly such big decisions have ever been taken in history.
If India has to move forward then even bigger steps will have to be taken. Everything has some qualities and there are some drawbacks too, but we should always move forward with positive thinking.
Sometimes it is a great thing to have the courage to do some good things, to win the trust of millions of people.
We should help the government on such big decisions and also question the poor outcome. Both the government and the public have to take the country forward together, this is a democracy.
The plan for demonetization has not been as successful as it should have been, but to a large extent, it has benefited immensely.
Demonetization must be done after a few years to strengthen the country’s economy. By doing this the black money of the country will end simultaneously and all the problems related to terrorism will also be eliminated.
We all should respect this process of demonetization and it will be successful only with the cooperation of the people.
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