An Essay/ Article on Demonetisation ( नोट बंदी) in India with its social and economic impact - भारत में नोटबंदी पर निबंध / लेख - Read Nov 2018 Historic Decision of the Union BJP Govt
When PM Modi announced that Rs with the denomination of 500/- and 1000/- would cease to be the legal tender from 9th of Nov, the whole country was stunned. This decision caused sensation in the whole country. Social Media was flooded with messages and information. People started counting the trash they had accumulated for years illegally.
Rumours became rife. People devised new ways for saving their hard earned money !. Some tried to invest their dying currency in gold. Some contacted their near and dear ones in this miserable hour. People could get only Rs 4000/ of old denomination exchanged with the new one. Big queues before the banks and ATMs became the order of the day.
Instead of getting shorter, these queues were getting longer with every passing day. The last date for the whole process was 30th of December. The persons could deposit the old cash worth Rs 2.5 lac till the said date.
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The main objective of this move was to curb the black money, corruption and fake money menace. All the people but those who were indulged in malpractices welcomed the move. The whole opposition shook hand against this move under one pretence or the other. They called this decision a draconian law and wanted the govt to roll it back. Tirades were made to target the decision. Govt also carried out counter attacks.
The new currency which replaced the old one was in the denomination of 500/- and 2000/-. Though the people faced a lot of inconvenience owing to shortage of funds, they did not criticize the govt for the move. Rather they lauded the Modi govt for this historic move. Prime Minister also addressed the people many times telling the people that it was a mahayajna (महायज्ञ ) and they must offer their own ahuti ( आहुति ) in it.
He further said he was aware of the hardships they were suffering from but he sought only 50 days for setting the things right. He jibed at the chief political leaders who had stashed big amount of money and therefore, joined hands to force govt to rollback its decision.
The most interesting thing regarding the demonetisation was that people had devised various unique methods for transforming their black money in to white one. Some of these methods were as follows -
- Depositing money in the accounts of their poor relatives and friends.
- Enticing the people with some percentage of money for exchange.
- Asking their employees to stand in the long queues in front of Banks and ATMs for getting money exchanged.
- Hiring labors for some Rupees ranging from Rs 500/- to 700/- for becoming the part of long queues in front of banks/ ATMs.
- Converting black money in to gold.
- Paying a few months salaries in advance.
- Paying back loans forcibly.
- Using their influence / links with bank employees and so on.
Impact of Demonetization on Indian Society/ Economy -
We saw a great impact of this move of the Central Govt on Indian Society and Economy. The first impact was that people had to lower expenditure power. With that they could not purchase luxurious things.
There were no ostentatious expenditures on marriages and other ceremonies. So the society grew lesser materialistic and people more prudent. With the fake money destroyed, Indian economy was expected to see a big boom and resultant so-far-booming-real-estate-sector fell on the ground.
People had the following expectations - The things would be cheaper. Indian Currency might get respect at the international market. There might be a great check on the terror-related funding and therefore, on terrorist activities. Corruption would be down to a great extent as people would stop the tendency of accumulating money using wrong means.
This big move was greatly expected certainly to abridge the gap between the haves and the have-nots. "However, there might be some difficulties for a couple of months. But this inconvenience would temporary and for short-term" had assured the govt.
On the first anniversary of Demonetization, read what big leaders of the country had said -
Finance Minister Arun Jaitley - It was ethical drive, watershed moment ...
Former PM Manmohan Singh - Demonetization was organized loot, hit economy ...
PM Modi - I bow to the people of India ...
Unexpected things the people felt -
- Recession in the business
- Not much control on the corruption
- No receiving of much expected black money from Swiss Banks and so on ....