Demonetisation led to greater penetration of banking - both population and area wise. The RBI data shows that post-demonetisation, 2.33 crore new bank accounts were opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY).
Announcing demonetisation on November 8 last year, Prime Minister Narendra Modi listed fighting black money, fake currency and terror funding, and promoting digital transaction as its objectives.
by India Today on 21st Oct 2017 • 34 Views
Demonetisation proved to be a major disruption in the Indian economy and brought great hardship to people who spent hours in the serpentine queue to get Rs 500 and Rs 1,000 notes exchanged or deposited in their bank accounts.
Demonetization means stopping a form of currency from being legal tender. That means that this currency can no longer be legally used. It cannot be used to buy things and if it is paid into the bank, your bank manager should not accept it.
Data released by the Reserve Bank of India indicates that demonetization has failed to flush out black money. While short-term indicators show that the Indian government has failed to meet stated objectives, demonetization could be an economic success in the long term.
Indian government has demonetized the high value currencies i.e currency notes of 500 and 1000 with objective to unearth the black money, and to curb the corruption, counterfeit currency as well as terror financing. This decision was considered as biggest cleanliness drive against the black money in the history of Indian economy.
Demonetization of Currency - Merits and Demerits
At the stroke of the hour on midnight of 9th November 2016, India lost 86% of its monetary base. The print, electronic and social media has been praising Prime Minister's masterstroke by which he has reportedly destroyed the base of corruption in India.
On the heels of The Undisclosed Foreign Income and the Income Disclosure Scheme of 2016, the Narendra Modi government has announced demonetization of Rs 500 and Rs 1000 currency, which has been referred to as a masterstroke by many experts .
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 legally or illegally.