Yet slowly the country is accepting digitalization and people are reluctantly but surely becoming aware of cashless currency. At the same time, this step gave rise to a cumbersome situation for the citizens of India. There was an overall cash crunch. This will help the income tax department to track individuals with high denominations currency. I am trying my best to make this speech a neutral one. More banks and businesses are also embracing electronic and digital payment systems.
Likewise, end each sentence with a mini-conclusion for the paragraph and produce a transition either in this part or at the beginning of the next paragraph. A macro and micro assessment were needed for ground level problems. In January 1978, the Government of India demonetized Rs. Hawala operations in Western and South Western India were badly hit. Economists predict that over the long term, demonetization will lead to reduced interest rates and also cause an increase in investment in the real estate sector.
However, several measures are still required to change the economy to benefit its citizens. The government decided that the 50-day window was sufficient for people to deposit or exchange all of their cash. The government can get income tax return for the income on which tax has not been paid. So what are your thoughts on demonetisation, feel free to share your thought on this topic. Here is our overview how effective it was.
This resulted in a corresponding decrease in crime across those areas. This step is considered as the biggest cleanliness drive against the black money in the history of Indian economy. Let us hope for the best. According to the critics of the government, adequate arrangements should have been made in advance to support the people in dealing with cash crunch in the wake of this move towards cashless India. And we know that you are smart enough to convert this core information in various format.
So, blaming Modi is just kidding. Demonetisation in India As per the claim of the Government of India, the demonetization step was taken to count-attack the funding of terrorism, crack down on , , and many other things. Demonetization in India Demonetization has now taken place thrice in the history of Indian till date. But I do see Indian economy crossed British economy in 150 years. These essays written in a simple language will help the students choose any one as per their requirements. In conclusion we can say that although the objectives of the 2016 demonetisation were noble; the process of implementation was sadly lacking and could have been smoother and better organised.
In addition, all future transactions would be done through banks. Second time it was done in 1978 by Government headed by Morarji Desai, when Rs 1000, Rs 5000 and Rs 10000 notes were demonetized. This not only collected a big sum of money but acting as a brutal deterrent to the corrupts. And, third, its implications for the broader vision underlying the future conduct of economic policy. However, it is important to note that the great surge in use of cashless transactions declined soon after reaching its peak levels in December, 2016. The old currencies validation at Indian Railway was also a big support to the railway transport. Many eminent economists said that it would not be effective in curbing black money and termed it a hollow move.
The government is facing several challenges in implementing the new policy. Altogether the scope of digitalization should take urban as well as rural India under its ambit. In terms of volume, the report stated that 24% around 22. The government believes that through demonetization, funds flow from illegal activities will stop. They gave a week-time for the people possessing those notes to exchange in the Bank.
They were asked to deposit all the money in their Jan Dhan accounts and do their future transaction through banking methods only. Moreover, E-commerce modes of making payments have also become popular, as most of the people have now started making payments of even Rs 50 through the digital modes. At one fell stroke, 86 percent of the cash in circulation was thereby rendered invalid. The government must put a certain limit that transaction of the certain level has to happen through the cashless form of transaction. Eventually in 1878 silver as legal tender was re-monetized by the Bland-Allison Act in response to pressure from farmers and traders.