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In 2016, the indian government decided to demonetize the 500 and 1000 rupee notes, the two biggest denomination notes.
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In india connected 8 th November 2016, demonetization was a government decisiveness whereby a first was made to get currency billboard and corruption low control.
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The mental process of demonetization involves either introducing red-hot notes of the same currency operating room completely replacing the old currency with new currency.
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Essay on demonetization in india 200 words
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What does it mean to demonetize a currency?
Demonetization happens when a government legally bans the coins and notes of a certain denomination. The currency which is banned may or may not be replaced by the new currency. The aim of Demonetization is to target multiple problems like illegal activities and their funding source, terrorism, tax evasion, and counterfeit currency.
Where did the idea of demonetisation come from?
Origins of the idea: Demonetisation has earlier occurred two times in the Indian economy, both times the goal was to combat tax evasion through black money. The first demonetisation occurred in 1946, during the rule of the interim government under Jawaharlal Nehru.
What are the advantages and disadvantages of demonetization?
Another notable advantage of demonetization is reduced liability for the government. This is because demonetization reduces the risk and liability of liquid currency. Furthermore, handling soft money is far easier than handling hard money. Also, every note is a liability for the government.
Can you write a long essay on demonetization?
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Last Update: Oct 2021
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