Advantages and Disadvantages of Demonetization Policy
Today our country is suffering from a demon, a pain, a struggle, of 'demonetization'. What is demonetization? It is a process by which a denomination of currency will not be legal tender. The denomination of notes will not be acceptable legal currency. That is what happened with Rs.500 and Rs.1000 notes after demonetization. Different people have different definitions for demonetization. As a coin has two sides, similarly demonetization has two aspects positive and negative.
On 8th November 2016, our PM Narendra Modi announced the policy of demonetization in India which shook the people who were sitting on the pile of black money. They ran towards jewelers to make their money white but every culprit was under the eye of law
No doubt whole system of trade, cycle of currency is disturbed for 50 days, we have to suffer but for only our bright future, for our nations enlighten future we have to sacrifice for few days. Demonetization is very bold step taken by Narendra Modi; it is advancing us by many advantages.
Now every person in our country is standing in same queue either rich or poor. Now each and every person is on same platform. No one can dominate or influence other on the basis of money power. This action took by our government will help to trap unaccounted black money on which income tax is not paid. This will halt gathering of high-value currency notes. This will stop circulation of fake currency in a single move which will stop terror of terrorism. By banning high-value currency notes, people would have no choice except to declare income and to pay tax on it. People are supposed to show PAN on deposit above 50,000 in cash and this will help tax department to identify culprit with high denominations. Deposit up to 2.5 lakh is a legal tender. Once the accumulation of currency is stopped, it will lead to smooth functioning of system. Demonetization is immense break in front of corruption. Once system would be properly set, it will end up with destroying roots of corruption in our country. Where we are elated with the advantages of demonetization on the other hand we are in grief of its disadvantages.
Harassment to public is big cons of demonetization in India. People used to stand in queues for 5 to 10 hours and even after long waiting hours some are returning without money. It reflects that system is not fully planned before its implementation. ATM's are not yet calibrated according to new 2000 and 500 notes. Many people died because of standing long lines for many hours. If people are getting notes from bank they can't spend it as no exchange of 2000 rupee note is available. For 6% black money holders 94% of Indians are standing in queues so, some other alternative had to be taken. In all families where there is marriages are in problem. Black money still exists as the dark cash which is invested in banks out of in India is still unaffected and untouched. Moreover government is promoting "CASHLESS ECONOMY" which is very good move but with lot of problems, it is leading to more and more cyber crimes prevailing in our country. Some insurance or guarantee should be granted by government that if our card or account number is misused our money should be returned.
Disadvantages of demonetization is short termed but it need to manage as it is leading to lot many deaths and advantages of demonetization is having long term impacts on economy of our country. So, each and every member of our country should raise their hands against their dark cash which will ultimately leads to dark future.
- Sakshi Sharma
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