Demonetization policy will help India to become corruption Free? Demonetization of currency means discontinuity of the particular currency from circulation and replacing it with a new currency. In the current context it is the banning of the 500 and 1000 denomination currency notes as a legal tender.
Demonetization policy will help India to become corruption Free? – India Virals
The announcement of the demonization of the currency has caused huge inconvenience to the people. It has deeply affected business. Due to the cash crunch, the entire economy has been made to come to a standstill. Many poor daily wage workers are left with no jobs and their daily income has stopped because employers are unable to pay their daily wage.
They are running to the banks to exchange, deposit or withdraw notes. The sudden announcement has made the situation become chaotic. Tempers are running high among the masses as there is a delay in the circulation of new currency.
The government is finding it hard to implement this policy. It has to bear the cost of printing of the new currency notes. It is also finding it difficult to put new currency into circulation. The 2000 rupees note is a burden on the people as no one likes to do transaction with such high value currency. Some critics think it will only help people to use black money more easily in future.
Further, many people have clandestinely discarded the demonetized currency notes and this is a loss to the country’s economy.
Economists are busy in listing out many more merits and demerit of this policy. The government is saying that there are only advantages of demonetization policy and this will be seen in the long term.
However, if we compare the merits verses demerits, it will be safe to conclude that the former outweighs the latter..
- The small traders and shopkeepers faced the most difficulties as their whole unit depends upon cash. So many small business units struck off leading to unemployment.
- The workers and the students also faced the problems. Some workers returned to their villages as the work was not available.
- There was the slowdown in the GDP and the rise in the unemployment. With 99% of the demonetized notes back in the banking system, little of the stock of the black money in the country was evidently extinguished which means it was successfully converted into other forms which is a big blow to the idea of Demonetisation.
Those individuals who have unaccounted cash are now required to show income and submit PAN for any valid financial transactions. There are many peoples in our India Still Don’t have Pan Card. Now, these people are suffering the many problems that how they will submit their large amount of piece. The government can get income tax return for the income on which tax has not been paid.
Demonetisation Is Helpful?
The move will stop funding to the illegal activities that are thriving due to unaccounted cash flow. Banning high-value currency will rein in criminal activities like terrorism etc.
The ban on 500 or 1000 value currency will also curb the menace of money laundering. Now such activity can easily be tracked and income tax department can catch such people who are involve in the business of money laundering.
This move will stop the circulation of fake currency. Most of the fake currency put in circulation is of the high value notes and the banning of 500 and 1000 notes will discontinued the circulation of fake currency.
This move will encourage people to use all the online methods of transactions to become Digital India Successful.
This move has created interest among those people who had opened Jan Dhan accounts under the Prime Minister’s Jan Dhan Yojana. They can now deposit their cash under this scheme and this money can be used for the developmental activity of the country.
The demonetization policy will force people to pay income tax returns. Now Many people who have been hiding their income are now forced to declare their income and pay tax .
The Government Stated that even though deposits up to Rs 2.5 lakh will not come under Income tax scrutiny, individuals are required to submit PAN for any deposit of above Rs 50,000 in cash. This will help the income tax department to track individuals with high denominations currency.
The Main objective is to make India a cashless society.
All the monetary transaction has to be through the banking methods and individuals have to be accountable for each penny they possess. It is a giant step towards the dream of making a digital India. If these are the merits, there are demerits of this policy as well.
And, The government is taking all the necessary steps and actions to fulfil the currency demand and soon the Problems of the people will be over with the smooth flow of the new currency.