What is Demonetization?
Demonetization is a process by which a quantity of currency will not be legal tender. The quantity of note will not acceptable as valid currency. The same thing happens with the Rs. 500 and Rs.1000 note after demonetization.
What are the causes of Demonetization?
There can be many reasons of Demonetization in any economy some of them are: Introduction of New Currency, to stop Black Marketing, excess Currency Storage, High Corruption rates, and others. There will be excess fake currency in the economy is the main reason of demonetization.
What Happened on Demonetization?
On 8 November 2016, Government of India had announced that from that day onwards rupees 500 and 1000 rupee note will not be a legal tender. This means that 500 and 1000 rupee note will accept by anyone except the organization declared by the government. They can change the currency from the banks and post offices until 30 December 2016.
What is Impact of Demonetization? What are Pros and cons of demonetization in India in 2016?
Hence, there are clear Impacts of demonetization showing in all the cities of India. Nevertheless, Results of currency closure can be advantages or disadvantages. Business Batao supports the currency demonetization in India.
We are mentioning the current disadvantages or cons of Demonetization:
- All India is in line out Banks and ATM’s for Cash.
- People are waiting for more than 5 to 10 hours to get cash from Bank. Still, after waiting, some people are no getting Cash. Harassment to the public is a big con of demonetization in India.
- Nevertheless ATM’s are not adjusting according to New 500 and 2000-rupee note.
- Until 16th of November 2016, there is a report of a death of more than 35 people due to cash problem.
- People are getting the 2000-rupee note but not getting the change in the market against this note. Small currency is threatening Disadvantages of Demonetization.
- There can be a problem of Law and order in the country.
- Accordingly, All families where there is marriage in the month of November are in big trouble. Another demonetization disadvantage is with those families.
We are mentioning the current advantages or pros of Demonetization:
- All fake currencies will be stolen in one shot is the biggest benefit of demonetization.
- Bank and Card transactions will Increase. This is positively affecting the Indian Economy.
- There is big fall in terrorist activities in Jammu and Kashmir is the biggest demonetization advantage.
- There will be proper cash in the banks and condition of a bank will be going better off.
- The government Authorities keeps big Amount of Black money.
- All Black Marketers and corrupt officers are in Threat will advantage of Demonetization.
So above all were the pros and cons of demonetization. Hence, I will keep you update with the impact of demonetization regularly.
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