CHALLENGES FOR DEMONETIZATION IN INDIA (2016)



     The demonetization announced on 8th November, 2016 was sudden and unexpected. So there was scarcity of cash in the banks due to which demonetization creates confusion, problem for public in depositing or exchanging them with new ones and also led to long queues outside banks and ATMs.

   There was non–availability of currency change as Rs.2000 banknotes was of high denomination and so many individuals were getting difficulties in getting change of Rs.2000.

  The demonetization was a bad hit for those individual who need urgent medical treatment and need cash for surgeries and medicines etc.

  The demonetization badly affected those people who were having marriages in their families and they are allowed cash withdrawal of Rs.2.5 lakhs only.

  The general public also facing problems as they are not able to buy daily necessities product because of shortage of cash.

  Farmers started incurring losses as there was scarcity of cash and thus prices  of their products have fallen.

  The demonetization was bad hit for daily wagers and laborers as they are not able to get there payments and wages on time .

  There was emergence of online transactions but those who are illiterate and of old age were not able to make use of smart phones and laptops.

  The foreign tourists who were enjoying there holidays were badly hit due to this movement as due to demonetization they were not able to  make transactions through older currency notes.

  The demand for land holding drives the property costs in the country.

  The huge number of traders have started incurring losses due to non availability of cash in the market.

Comments

Post a Comment

Popular posts from this blog

POSITIVE IMPACTS OF DEMONETIZATION IN INDIA (2016)

Image
The demonetization has brought many changes in the economy and impacts the Indianeconomy and especially the issues for which it has been undertaken by the Government Of India. 1.) BLACK MONEY – The government has estimated that around Rs.5 lakh crore would be removed from circulation permanently. But, according to RBI report for the year 2017-2018, more than 97% of Rs.500 and Rs.1000 banknotes i.e. around 15, 311 lakh crore out of 15, 418 lakh crore   have been recovered and deposited with the banks. Only a little amount of banknotes have not been recovered and deposited with the banks. 2.) TAX COMPLIANT SOCIETY – There is an increase in direct tax collection by 25% i.e. around 12 lakh crore in year 2017-2018 as compared to previous year 2016-2017 from 9 lakh crore. INCOME TAX FILINGS Year Filing Of Income Tax Return New Return Filers Corporate Returns 2015-2016 4.7 cr 66.2 L 7.5 L 2016-2017 5.5 cr ...
Read more

HOW DEMONETIZATION WAS IMPLEMENTED IN INDIA (2016)

Image
The demonetization was announced on 8 th November, 2016. When demonetization was announced, there was not much information available to the public. It was sudden and unexpected. The new currency notes are quite different in terms of its size, colour, looks and design. The plan of demonetization was started in February, 2016. The RBI had presented to Government an analytical notes about the merits and demerits of this idea, the impact, challenges, consequences associated with it and alternatives ideas and necessary preparation for its implementation. There were several rounds were conducted on ideas, pros and cons etc, again and again regarding this move and regarding its implementation. In may 2016, the Reserve Bank Of India has started the printing of new currency notes and confirmed the design of Rs.2000 banknotes in August, 2016. The new banknotes were started printing in October, 2016. RBI has spent around Rs.3,500 crore to print new banknotes in 2016-2017 ( July to J...
Read more