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Essay on positive and negative impact of ban of Rs500 & rs1000 in India - Short essays on famous quotes

        • Free 509 words Essay on positive and negative impact of ban of Rs.500 and Rs.1000 in India for school and college students

        One of the shocking decisions taken by our Prime Minister, Shri Narender Modi that came into effect on November 8, 2016, late night.

        This day became the shocking day ever seen in history of the country like India.
        In 2016, the Indian government decided to demonetize the 500- and 1000- rupee notes, the two biggest denominations in its currency system; these notes accounted for 86% of the country’s circulating cash. With little warning, India's Prime Minister Narendra Modi announced to the citizenry on Nov. 8 that those notes were worthless, effective immediately - and they had until the end of the year to deposit or exchange them for newly introduced 2000 rupee and 500 rupee bills.

        Let us have a look at the positive and negative impacts of ban of Rs.500 and Rs.1000 notes in India.

        Looking at the positive side of ban of Rs.500 and Rs.1000 in India first:

        • Black money holders would be the most suffers. This ban put by our honorable Prime Minister to grab back money from the country would impact black money holders who were living their life peacefully earlier without paying any taxes.
      • Will put fake currency note on hault. Our market is flooded with the fake currency notes mostly of Rs500 and Rs1000 and most of the fake currency notes rackets will suffer from this ban.
        The government’s goal (and rationale for the abrupt announcement) was to combat India's thriving underground economy on several fronts: eradicate counterfeit currency, fight tax evasion (only 1% of the population pays taxes), eliminate black money gotten from money laundering and terrorist-financing activities, and to promote a cashless economy. Individuals and entities with huge sums of black money gotten from parallel cash systems were forced to take their large-denomination notes to a bank, which was by law required to acquire tax information on them. If the owner could not provide proof of making any tax payments on the cash, a penalty of 200% of the owed amount was imposed.

        But we know they are smart enough and soon move to preparing fake currency notes of 2000 as well.
    • Impact terrorism:- According to our Prime Minister, terrorists are governing our country and many other individuals who are linked directly or indirectly to them.
      On 8 November 2016, the Government of India announced the demonetisation of all ₹500 (US$7.80) and ₹1,000 (US$16) banknotes of the Mahatma Gandhi Series. The government claimed that the action would curtail the shadow economy and crack down on the use of illicit and counterfeit cash to fund illegal activity and terrorism. The sudden nature of the announcement—and the prolonged cash shortages in the weeks that followed—created significant disruption throughout the economy, threatening economic output.

      All of this is done through the fake currency. This decision will definitely impact such terrorists.
    • Impact on corruption:-This move taken by our honorable Prime Minister, Shri Narender Modi would reduce corruption to a considerable level.
      A Central Bank's report released in August 2017 stated that 99% of the ₹ 500 and ₹ 1000 notes are back in circulation. Therefore, the government failed in its aim of purging black money from the economy. India's Prime Minister Modi, had said that due to demonetisation, corrupt officials, businessmen and criminals — popularly believed to hoard large amounts of illicit cash — would be stuck with “worthless pieces of paper”. The amount of money deposited in the banks was much more than the government had expected at the time of banning the notes.Prominent economic analyst Vivek Kaul, said in a BBC article that "demonetisation had been a failure of epic proportions." It was highlighted that there were meagre or no gains as against ill effects such as the cost of printing new notes, loss of livelihoods and deaths.

    • Impact on Election: - All of us are aware of the false strategies played by the politicians at the time of Elections and all thanks go to the fake currency or Black Monet they own. This ban would force all those politicians to showcase their financial status if they really want to convert their money to white one.
      This move has generated 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.

    Moving on to the negative Impact of ban of Rs.500 and Rs.1000 in India now:

    • Inconvenience this ban is causing to the people:-Since the ban was imposed just a few days back, it has really become a difficult task for the common man to survive on notes of Rs.100 only. Surprisingly, after the implementation of this ban, banks remains closed for public service and it caused inconvenience because people who have least amount of money found it difficult to survive in those days.
      Soon after the announcement, people rushed to buy gold, a demand that drove prices up, in some cases even to a 60% premium, prompting the tax authorities to conduct surveys, according to the Business Standard newspaper. The government emphasized the need to furnish PAN (Indian Permanent Account Number) card details on purchases for accountability purposes, and many jewelry shops that were flouting the norms came under crackdowns. Simultaneously, rumors of a gold ban started to float, which led to agencies ramping up the volume of gold imports - to around 100 metric tons during November, the highest since 2015, as reported by Reuters.

    • The Common man will be affected directly: -There are many people who are not aware of the difference between the fake and the real money. Now banks would simply refuse to accept fake money and such a kind of people who unintentionally own the fake money would suffer a lot.
      Prepaid cash cards were another option that customers found useful, and that meant good news for companies like ItzCash. Other alternatives include mobile payments systems linked to e-commerce businesses like Ola Money, FreeCharge, Flipkart Wallet. Ola Money, the payment portal for popular transportation app Ola Cabs, reported a 1500% jump in money added to the accounts in less than four hours.

    • People who deal only in cash like wholesalers, retailers, garments shop, merchandisers would suffer a lot due to this ban. Real Estate Industry would adversely be affected.

    Wrapping up

    This ban is a shocking news that came as a surprise from our Shri Narender Modi but definitely it is a positive move to remove corruption and black money from the country.

    The government has different objectives behind this demonetization. The first and foremost objective is to attempt to make India a corruption free country. In his different speech on demonetization Indian Prime Minister Narendra Modi clearly, points out that this bold step has been taken to get a control over corruption in the country. Secondly, it is done to curb black money, thirdly it is also a step to control escalating price rise, fourth to stop fund flow to illegal activity. On the other hand demonetization in India is also a very well planned step of govt of India to earn proper tax from the citizen. With the help of a different article on demonetization or essay on demonetization in different media, economist and responsible citizens tried to make the common people aware of the benefit of this steps taken by the government.

    People who are or have faced inconvenience would settle down soon and all of these problems would be resolved at a faster rate.

    Tags: essay on note ban in english, essay on note ban, note ban essay, essay on currency banned in india, essay on note ban in india in english

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Latest Comments

  1. Modi ka bhagat nhi November 21, 2016

    This is not a good step at all . only poor people surf the problem’s .

    • Gopi February 9, 2017

      this is good step taken by PM only few day people suffer .now comman things happen

    • Eshana riyaz March 8, 2017

      Yessssss very true

      • hasan April 21, 2017

        This is really good step

  2. solvermn November 23, 2016

    India just made a big mistake with its currency ban

    • Abhijit November 24, 2016

      you’re right. But only the next election will show how it went down.

      Looks like the people who are suffering still support it. But it may not be so funny if they are still short of cash in a week’s time.
      Prime Minster Narendra Modi's decision to scrap high value notes of Rs 500 and Rs 1,000 has created a shortage of cash in the system, leading to a lot of discomfort for the general public and businesses. Also, since there is a shortage of newly printed Rs 500 and Rs 2,000 notes, the situation has worsened. The move has also led to a shortage of lower denomination notes such as Rs 100 and Rs 50 that are still legal tender, as people have taken to conserving whatever cash they have in hand.

      As of this instant, it’s hard to say which will happen.

      Speaking broadly again, it will be impossible for Mr. Modi’s processing infrastructure to process the outcome of the data required to address any evasion, except taxation by the institution in which the money is held.

      In 2015, the Zimbabwean government demonetized its dollar as a way to combat the country’s hyperinflation, which was recorded at 231,000,000%. The three-month process involved expunging the Zimbabwean dollar from the country’s financial system and solidifying the U.S. dollar, the Botswana pula and the South African rand as the country’s legal tender in a bid to stabilize the economy.

      Prosecutions are likely to be impossible, given the burden on our judicial infrastructure.

      Overall, I agree with the article. And the execution has not gone well enough so far. But the goal was good, if only it can be achieved by this effort.

  • mauricesarri November 24, 2016

    The problem is income tax itself. Why tax good economic activity, providing goods and services people REALLY need, enough to pay their own money for them?

    What should be taxed is use of assets and resources.

    In June, the Government of India had devised the Income Declaration Scheme, that lasted till 30 September 2016, providing an opportunity to citizens holding black money and undeclared assets to avoid litigation and come clean by declaring their assets, paying the tax on them and a penalty of 45% thereafter.

    You extracted that ore or oil you did not put underground - pay for it. You use the land you did not create - pay for it. 0 income tax is totally possible, and would bring huge economic benefits. And non-renewable resource taxes will put a permanent incentive to reduce their use, which is not subject to periodic price drops to kill all competition (like Saudis do to kill off new energy companies).
    In 2012, the Central Board of Direct Taxes had recommended against demonetisation, saying in a report that "demonetisation may not be a solution for tackling black money or economy, which is largely held in the form of benami properties, bullion and jewellery." According to data from income tax probes, black money holders kept only 6% or less of their wealth as cash, suggesting that targeting this cash would not be a successful strategy.

  • Carlshen November 24, 2016

    ile of black money they should be nailed and braught down. I’m happy even though i have to wait for an hour n a half at the bank.

    Chaos ensued in the cash-dependent economy (some 78% of all Indian customer transactions are in cash), as long, snaking lines formed outside ATMs and banks, which had to shut down for a day. The new rupee notes have different specifications, including size and thickness, requiring re-calibration of ATMs: only 60% of the country’s 200,000 ATMs were operational. Even those dispensing bills of lower denominations faced shortages. The government’s restriction on daily withdrawal amounts added to the misery, though a waiver on transaction fees did help a bit.

    Yes people have suffered no doubt, but such a bold step is needed in our country because if any new law is discussed and passed people instead of trying to accept it they start challenging it and find a way to counter it (common dialouges: yeh sab dekha jayega, iska bhi tod hai humare pass and such other slang)
    For such people such sudden rules fall flat and is extremely effective.
    Demonetization is one of the most trending topics which occupied the columns of Indian newspapers in 2016. INDIAN PM Narendra Modi took a bold step against the black money holders by declaring demonetization in November 2016. Initially, implementation of demonetization in a populous country like India was not a cakewalk for the government.The sudden declaration of demonetization in the country has created lots of chaos and confusion among the common people of the country, but gradually everything becomes normal. But as a result of demonetization in the country, an essay on demonetization (simply we can say demonetization essay) or article on demonetization has become a common question in different board exams for the students there is a sudden demand of Demonetization essay among the students. Hence, GuideToExam brings to you the ultimate solution by providing you all your needful information regarding demonetization essay.

  • rajat November 24, 2016

    On balance I don’t think the comment author truly understand the enormity of the problem that India faces. Normdo I think that their opinion necessarily has more credibility than the Indian intellectuals who analyzed and proposed the solution to their own problems.

    Many Indians switched to alternative payment avenues - a big deal in a country of 1.2 billion with only 25.9 million credit cards and 697 million ATM cards as of July 2016. The biggest gainers were mobile wallet companies that offer ease of transactions through a large network of partners. Alibaba-backed Paytm saw a sevenfold increase in overall traffic and a 10-fold jump in money added to Paytm accounts. It also saw the number of transactions double to five million a day. App downloads for Paytm increased by 300%. Paytm rival MobiKwik also saw its app downloads quadruple and a 20-fold increase in money added to the wallets, MobiKwik Founder & CEO Bipin Preet Singh, told CNBC-TV18 on November 13.

    The time is over when a western perspective is automatically right.

    Black money including counterfeited notes have been a cancer, enabled enemies of the state and held back the Indian economy.

    The hypocritical failures of economic policy as evidenced by the 2008 recession caused by corruption in US companies and the Government can be brushed aside to scam the common American person and yet those very apologists hand wring about solutions proposed by other countries due to hubris and arrogance.

    The government’s stated objective behind the demonetization policy are as follows; first, it is an attempt to make India corruption free. Second it is done to curb black money, third to control escalating price rise, fourth to stop funds flow to illegal activity, fifth to make people accountable for every rupee they possess and pay income tax return. Finally, it is an attempt to make a cashless society and create a Digital India.

    Whatever the outcome, it cannot be worse than the mess Greenspan, Goldman Sachs and the US govt made by dismantling the Glass-Seagal Act.

  • Sabkaa November 24, 2016

    Jumping the gun is as bad as jumping the Q, especially if its for changing the currency. But what if its for changing the country? I believe that we are not looking at the whole issue in right perspective.

    Under the revised guidelines issued on 17 November 2016, families were allowed to withdraw ₹250,000 (₹2.5 lakh) for wedding expenses from one account provided it was KYC compliant. The rules were also changed for farmers who are permitted to withdraw ₹25,000 per week from their accounts against crop loans.

    Change in a country of ours size, which is seventh biggest in terms of area with second biggest population globally, has always been difficult. Nice thing is that a politician at the level of PM has taken the initiative and rest assured that the ever adjusting and innovative Indian minds will do the rest.
    The Communist Party of India (Marxist) (CPM) alleged that the BJP unit in West Bengal had advance knowledge about the impending announcement, and deposited money just before the announcement. Aam Aadmi Party leader Arvind Kejriwal also claimed that there had been some leakage regarding the move. Kejriwal questioned how Sanjeev Kamboj, a BJP leader in Punjab, posted about the ₹2000 notes days before the official announcement, and alleged that a sudden spike in bank deposits between July and September 2016 was also due to information leakage. The Congress party demanded a probe into this huge jump in bank deposits before the demonetisation. Kamboj rubbished Kejriwal's allegations by saying that he only tweeted that a new ₹2000 note would be issued but nowhere did he mention that old notes would be banned and that there were already some news reports about the introduction of new ₹2000 note. He said Kejriwal is doing dirty politics.

    As far as Opposition of Indian parties is concerned, poll results of 2014 have already shown them the reality. A leader shouts in Parliament and dares PM to go for fresh polls, who did not even get a single seat in last elections.
    Initially, the move received support from several bankers as well as from some international commentators. The move has also been criticised as poorly planned and unfair, and was met with protests, litigation, and strikes against the government in several places across India. Debates also took place concerning the move in both houses of parliament. The move is considered to have reduced the country's GDP and industrial production.

    Its time to change and change now.

  • Nur November 24, 2016

    A simple question.
    Are Modi and his advisers/cronies fit to lead and uphold the trust bestowed on them by the people? It’s one thing to fight corruption and the like, it’s another thing to disrupt the economy and the everyday life of the people.

    The BSE SENSEX and NIFTY 50 stock indices fell over 6 percent on the day after the announcement. In the days following the demonetisation, the country faced severe cash shortages with severe detrimental effects across the economy. People seeking to exchange their bank notes had to stand in lengthy queues, and several deaths were linked due to the rush to exchange cash.

    The wisdom: LOOK BEFORE YOU LEAP! :=/

    • truth November 24, 2016

      Modi is doing exactly what the people put him in power for! The step of demonitization is only being criticised by those who either are hoarders of ill-gotten assets or those who cannot bear the sight of a progressive India!

      Also, it is convenient to blame Modi and his policies from the comfort of your home in Pakistan! Even the poorest in India are willing to bear the short-term inconveniences for long term stability!

  • globalv November 24, 2016

    This was a great move by government to get out the black money which almost run as parallel economy and ruins everything. And, replacement of these currency with new currency is no big deal.

    Demonetization is the act of stripping a currency unit of its status as legal tender. It occurs whenever there is a change of national currency: The current form or forms of money is pulled from circulation and retired, often to be replaced with new notes or coins. Sometimes, a country completely replaces the old currency with new currency.

    All the banks are working fast.
    There is no short cut to control corruption.

  • Spark November 24, 2016

    This is an awesome essay. I’m from India and what is explained in this essay is so true.

    After Modi's announcement, the Governor of the Reserve Bank of India, Urjit Patel, and Economic Affairs secretary, Shaktikanta Das explained in a press conference that one purpose of the action was to fight terrorism funded by counterfeit notes. While the supply of notes of all denominations had increased by 40 percent between 2011 and 2016, the ₹500 and ₹1,000 banknotes increased by 76 percent and 109 percent, respectively, owing to forgery. They said that forged cash was used to fund terrorist activities against India and that the demonetisation had a counter-terrorism purpose.

    I was just wondering how could you write like this - whatever we are going through is explained in the essay and in the comments. The government was doing this blindly without having any kind of technical knowledge of it. None of the exceptions were handled either. The market or the business is totally crashed.
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    • browneyes November 24, 2016

      Except that you are wrong. The Sensex has not crashed. It’s up 450 points today. And mobile payments are ramping up like crazy.

      The opposite of demonetization is remonetization, in which a form of payment is restored as legal tender.

      If it’s bothering you, that’s too bad. The government has already announced it’s intention to do MORE things like this. It is expected that people in the elite who stand to lose billions of dollars will complain.
      Over 3 trillion rupees, or over $44 billion in old currency, was deposited with Indian banks in just the first week after the demonetization. There was concern that the uncertainty and short-term liquidity squeeze would take some momentum off the Indian economy, the fastest-growing in the world; in particular, sectors like real estate, notorious as a harbor for cash dealings and black money, were expected to take a hit, with "luxury property prices dipping by as much as 25-30%," said Ashwinder Raj Singh, CEO of Residential Services, JLL India.

      Among the common people, approval is extremely high and that’s all the politicians care about.

  • Seema November 24, 2016

    after 16 days, Modi has only replenished 10% of the money out of the 86% of the currency he banned on 8 November.
    So India is functioning with about only 20% of currency compared to what it was doing before 8 November.

    Interest in Bitcoin also spiked: Sandeep Geonka, co-founder of Zebpay, told Investopedia that his bitcoin exchange was now adding about 50,000 new users per month. "We are seeing an increased demand for bitcoin and India clearly has shortage of supply, making the demand and lack of liquidity push up prices of bitcoin as compared to global exchanges,” said Coinsecure CEO Mohit Kalra. The virtual currency was trading at INR 55,735 in India in November (about $836), compared INR 47,725 (about $712) elsewhere.

  • Seema November 24, 2016

    On 8 November the Government of India by notification issued under Section 26(2) gave Indians until 30 December to exchange the banned bank notes at banks for the new currency. Today at 8 pm, after banks are shut for the day, Modi declares that this will not be allowed after midnight tonight.

    Prime Minister of India Narendra Modi announced the demonetisation in an unscheduled live televised address at 20:00 Indian Standard Time (IST) on 8 November. In the announcement, Modi declared that use of all ₹500 and ₹1000 banknotes of the Mahatma Gandhi Series would be invalid past midnight, and announced the issuance of new ₹500 and ₹2000 banknotes of the Mahatma Gandhi New Series in exchange for the old banknotes.

    So the Government now goes back on its own promise.
    Is this a government of sadists?
    I think the Supreme Court of India needs to step in and stop this farce and it must stay the Narendra Modi demonetization measure.
    On November 8, government announced the decision to discontinue the legal tender status of Rs 500 and Rs1000 notes. The original objectives were stated as: eliminating fake currency; inflicting losses on those with black money; and disrupting terror and criminal activities. Later, new objectives were tacked on: enabling growth in bank credit, turning India into a cashless economy. A cost benefit analysis suggests that the benefits were relatively small when compared with the costs: Expected impact on fake currency A study by the National Investigation Agency and the Indian ...

    • truth November 24, 2016

      Only thing I can’t tell from your comments is whether you are from Pakistan or are a paid Congress party troll! Either way, I am totally enjoying the pain and discomfort of anti-nationals and black-marketers who got little time to move their cash befoee it was declared worthless!

  • Seema November 24, 2016

    Modi’s demonetization pain for gain has caused at least one death from stampede in a bank queue and innumerable cases of bank customers being gratuitously beaten up by the Police . As I said in an earlier comment, please view these videos on YouTube.

    A BJP MLA from Rajasthan, Bhawani Singh Rajawat, claimed in a video that 'Ambani and Adani' were informed about the demonetisation, and made arrangements. However, he later said that it was an off-the-record conversation, and officially denied the comments.

    Modi’s demonetization has already in less than three weeks caused 4 lakh job losses.

    • Ramaswami November 24, 2016

      Unlike the common legal practice of leaving several criminals free instead of convicting an innocent, the people of India have come to a state of mind to accept some short pains to save the next generation free from these evils. And for India to do so, the country has got its rarest opportunity and determined Prime Minister.

      The plan to demonetise the rupee 500 and rupee 1000 bank notes began six to ten months prior, and was kept highly confidential with only about ten people aware of it completely. The logistical processes and preparations for printing the new rupee 500 and rupee 2000 bank notes began in early-May. The cabinet was informed about the demonetisation on 8 November 2016 in a meeting called by the Prime Minister of India Narendra Modi which was followed by Modi's public announcement about the demonetisation in a televised address.

      Hopein the days to come other major nations will also follow suit. May be the process is bitter and bit costlier. When the disease is wide spread all over the body and is life threatening, certain bold measures are inevitable and this is the first step in that direction.
      When a currency note of a particular denomination ceases to be a legal tender it is termed as demonetisation. But since our government is replacing the old Rs 500 notes with newer ones and doing away with the Rs 1,000 notes, it would be more appropriate to call the move as `scrapping' or `phasing out' of certain curren cy notes.

      • Seema November 24, 2016

        People have died because their family members had no cash to pay for medical treatment. They had Modi’s old banned bank notes but were unable to get the new currency.

      People who refuse to die like this are anti-nationals in Modi’s world.
      The Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016 was issued by the Government of India on 28 December 2016 ceasing the liability of the government for the banned bank notes, and also imposing a fine up to ₹10,000 or five times the amount of the face value of the bank notes, whichever is higher, for people transacting with them after 8 November 2016; or holding more than ten of them after 30 December 2016. The ordinance also provided for the exchange of the bank notes after December 30 for non-resident citizens and others on a case by case basis.

      Sarcasm alert.

  • Vilhelm December 26, 2016

    Reading the comments, I am amazed to see how the main reason about the cash-ban politic is steamed away by a so called “war on corruption”… The main world problem is that people are hoarding money: it kills transactions, it kills the economy and it kills the banks. The middle class was devastated by globalism since its benefits went mostly to an “elite”.

    Growth in cash-intensive sectors such as real estate, construction and FMCG is likely to take a hit in the short term as consumers are deferring purchases. However, there is a positive side to the story: over the medium term, there would be benefits through higher government spending and greater financial inclusion. Also, the movement of household savings from physical to financial will help boost growth, according to Yes Bank report. The near-term fall in growth on account of spending slowdown, could push inflation down. Also, an increase in fiscal headroom will allow the government to maintain fiscal discipline, which in turn will support inflation target in the medium term.

    Trust in governments is slowly evaporated, national debts that are piling up like never before and a new crisis is on the corner: this time, it will not be like 2008 and people are feeling it. To force money out of the accounts, some “office genius” came around with the negative interest idea: it did not work where tried, as it pushed people to retrieve their money and hoard cash! In every country those negative rates was tried, the selling of personal safes exploded.
    Since our economy is heavily dependent on cash, as only less than half the population uses banking system for monetary transactions, demonetisation has hit trade and consumption hard. With people scrambling for cash to pay for goods and services, the move is likely to take a big toll on the country's growth and output during the current fiscal. Consumption makes up for around 56% of India's GDP , hence, a drop in spending will pull down growth. The current step could also lead to behavioural changes in households' savings and their consumption pattern, say economists.

    So the solution the “office genius” came with, was to ban cash. I quote Martin Armstrong since he´s setting his finger on it “…people like Summers think they can force GDP growth by punishing people with NEGATIVE interest rates if they do not spend money.
    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.

    ” … “He will never admit a mistake and since his NEGATIVE interest rates has not destroyed deflation but encouraged more with people hoarding cash, he is now advocating ending cash to prevent hoarding and then hopefully his idea of NEGATIVE interest rates might work.” There you go: it´s all said. So when cash is gone, be ready to be savagely plundered with negative rates.
    Patel also informed that the decision had been made about six months ago, and the printing of new banknotes of denomination ₹500 and ₹2,000 had already started. However, only the top members of the government, security agencies and the central bank were aware of the move. But media had reported in October 2016 about the introduction of ₹2,000 denomination well before the official announcement by RBI. This statement has led to much debate, because the Reserve Bank governor six months before the announcement was Raghuram Rajan, while the new banknotes have the signature of the newly appointed governor, Urjit Patel.

    Then and only then, will you understand which kind of freedom you had and which you lost! For sure, black money is a problem but do you really think that the black market will disappear when cash is banned? No: it will not. It will continue with foreign banknotes, silver, gold, goods and I even expect the “mafia” to print its own money.
    The discontinuity of a particular currency from circulation and a replacement of it with a new currency is called Demonetization. In the present setting, it is the restricting of the 500 and 1000 section money notes as a lawful delicate. In other words, it can also be said that A demonetization is an act of stripping a currency unit of its status as legal tender. It occurs when a particular form of money is pulled from circulation and a new note or coin is introduced in the market as a replacement of withdrawn form of money.

    Humans been exchanging solid stuffs from hand to hand for ages: we are not ready to go fully digital since we need contact with things to appreciate real value. Good luck to India!

  • sorav December 5, 2016

    Stop issuing 2000 notes. We must look at increasing circulation of Rs.100 & below denomination notes. In next year or so we must stop issuing new 2000 & 500 series notes which will help us in getting closer to becoming a cashless economy.

    On 28 October 2016 the total banknotes in circulation in India was ₹17.77 trillion (US$280 billion). In terms of value, the annual report of Reserve Bank of India (RBI) of 31 March 2016 stated that total bank notes in circulation valued to ₹16.42 trillion (US$260 billion) of which nearly 86% (around ₹14.18 trillion (US$220 billion)) were ₹500 and ₹1,000 banknotes. In terms of volume, the report stated that 24% (around 22.03 billion) of the total 90266 million (9026.6 crore) banknotes were in circulation.

  • naresh December 5, 2016

    This could perhaps have been done earlier. anyway where are the rs.20 and fifty notes in circulation. where have they gone!!!!why cant they release some hundred rupee notes at least in a shortwhile.

  • sona December 5, 2016

    Actually banks have exhausted Rs.100.00 notes including the entire stock of soiled notes. Rs.100.00 notes are more needed than Rs.50.00 and Rs.20.00 notes.

  • biz December 5, 2016

    Why not Coins ? Coins have a much longer life span, whereas paper currencies get soiled very quickly. At the same time, admittedly to carry coins in a wallet is difficult .

  • rahul December 5, 2016

    Increase circulating small denomination currency notes than high denomination, so that common people can transact easily for their petty day-to-day needs.

  • jagdev December 9, 2016

    Modi”d popularity has already gone to drain. He would have been popular if this demonetization would have planned and executed properly.

    The Indian government had demonetised bank notes on two prior occasions—once in 1946 and then in 1978—and in both cases, the goal was to combat tax evasion by "black money" held outside the formal economic system. In 1946, the pre-independence government hoped demonetisation would penalise Indian businesses that were concealing the fortunes amassed supplying the Allies in World War II. In 1978, the Janata Party coalition government demonetised banknotes of 1000, 5000 and 10,000 rupees, again in the hopes of curbing counterfeit money and black money.

    What has done shows his education level and he blindly accept whatever Jootly and Gujju patel says. Everyday these people change the policy and experiment, Country cannot run like lab experiment.

    • saloni January 21, 2017

      I think this is perfect plan ban on 500-1000 and modi ji is not doing this for getting popularity he take this for getting india better country setting in chair say that I am doing this and this can do any one you and me also but doing with action much better I think modi is the best and real P.M of India ever

  • GC December 9, 2016

    I think this man enjoys the suffering of the people of this country. He enjoyed the death of 2000 people in Gujarat and now the immense torture of people everywhere.

    People gathered at ATM of Axis Bank in Mehsana, Gujarat to withdraw cash following deposit of demonetised currency notes in bank on 15 November 2016.

    I hope he is not looking forward to the next opportunity to cause pain to Indians.

  • Anu December 9, 2016

    Everything is fine Sir, but the planning could have been better to avoid 84 deaths. We, who are already using digital payments may not feel the heat but the poor or the elderly people who do not know what PAYTM is, suffered.

    Nitish Kumar, Arvind Kejriwal and Rahul Gandhi alleged that the BJP made large purchases of land in Bihar ahead of the demonetisation because they had prior information. Rejecting all the allegations, Bihar BJP said that all these purchases have been in public domain and that full records of the transactions are available. It also said that payments were made through drafts and RTGS. The BJP claimed that there were thousands of registries in Bihar in the last few months, some of which could have been made in the names of politicians from other parties and asked whether it meant that all of them had prior knowledge of demonetisation.

    India belongs to them too.

    • NONAME December 9, 2016

      Most of indian don’t know the use of digital money. The 86 died in banks Q, think of those who died because of this in hospital or home

  • Lakmi December 9, 2016

    i agree, its so difficult, the public had enough of this since nov 8, what is the govt doing fooling witht he common man ? why are the ATMs empty . the common people who have casted votes to you dont get things easily like you ,hope u understand ,next time dont beg for votes

  • R.K.GARTIA December 9, 2016

    Let common sense enter to the grey area of the people who act as KUBER.

    However, Petrol, CNG and gas stations, government hospitals, railway and airline booking counters, state-government recognised dairies and ration stores, and crematoriums were allowed to accept the banned ₹500 and ₹1,000 bank notes until December 2, 2016.

    Enough is enough.The world will laugh at BHARAT.
    2000 rupee is one of the most idiotic thing that has entered to human mind.
    ever since the concept of birth of currency.
    Governance is subtle.

  • sourav December 9, 2016

    This Real estate Marked should be hit very badly due to demonetization as they hiked price in last 4-5 years like anything & actually looted money from Middle/salaried people. So now time has come for bleeding.

  • Pramod December 9, 2016

    To stop black money date is mention on each note with 5 year validity, after 5 year older note is invalid according to exp. Date. Just like medicines.

  • rimp December 9, 2016

    Incompetent RBI. The Governor is acting as the Government Clerk.

    Up to 97% of the demonetised bank notes have been deposited into banks which have received a total of ₹14.97 trillion ($220 billion) as of December 30 out of the ₹15.4 trillion that was demonetised. This is against the government's initial estimate that ₹3 trillion would not return to the banking system.

    He deserves to be dismissed and he does not feel any shame for the chaos.

  • ts December 9, 2016

    PayTM should indeed be investigated. It is Chinese investor owned company and we need to find out how RSS/BJP or any of their unknown/known affiliates are involved.

    More than 30 politicians belonging to the BJP were arrested and investigated for having unaccounted money in the new 2000 rupee denomination.

    Why should PM become a model in the hand of a small private sector company. Is no government organisation capable of providing the same service - banks, BSNL, etc.

  • shobhit December 9, 2016

    it seems that government officials are living in different world not concerning to pain of common people.

  • Rakesh December 10, 2016

    This government should be soon shown the door - better earlier than 2019 if possible, through a no-confidence motion or something like that. As if rubbing salt to a wound and adding insult to injury, there is no mention what the long term gains are nor any attempt to quantify the same.

    There is a background to the current decision of demonetization of 500 and 1000 rupee notes. The government has taken few steps in this direction much before its November 8, 2016 announcement.

    It is all talk in the air with no substantive logic and reason behind the same. Government by whims and fancy should come to an end and governance by a team of good people should be brought the fore now.
    As a first step the government had urged people to create bank accounts under Jan Dhan Yojana. They were asked to deposit all the money in their Jan Dhan accounts and do their future transaction through banking methods only.

  • RAVI December 10, 2016

    Country is taking huge leap in digital economy .Our people in villages were kept out of banking & digital revolution .This move of P.M. shall educated all citizens of India in banking & digital process -WHICH IS UNMEASURABLE GAIN FOR THE NATION

  • BHARATBASI December 10, 2016


  • AnpadNotFoolish December 10, 2016

    I often wonder if Mr Modi thinks that everyone other than himself is a fool! Law of nature tells me that a vast majority of Indians can not be fools.

  • Kumarapuram Sadasivan December 10, 2016

    It is reported in newsable asianet tv that the speech by The Dictator on November 8th was recorded much earlier but was telecast as “LIVE”. As per Modi,reportedly,he got permission from the RBI on November 8th,had a cabinet meeting by the next Hour.

    Small businesses and households struggled to find cash and reports of daily wage workers not receiving their dues surfaced. The rupee fell sharply against the dollar.

    Please google for:-newsable asianet tv modi”s demonetization speech recorded much earlier than November 8

  • naminder_dhir Singh December 10, 2016

    The Govt needs to take multiple steps to ensure that the battle against black money hoarders is taken to logical conclusion and culprits are caught and heavily penalized , especially the Big fishes including Politicians, Bureaucrats, Judges, Police heads, etc. The common public is fully supportive of Govt drive against black money , with a belief that crooks will not be allowed to get away.

    This move will help the government to track the black money. Those individuals who have unaccounted cash are now required to show income and submit PAN for any valid financial transactions. The government can get income tax return for the income on which tax has not been paid.

    Anything less that that will be a HUGE letdown to Indian public !!!

  • Vishwas Kanade December 10, 2016

    Let the Prime Minister first show the courage to take action on his MP”s in Loksabha and MLA”s and MLC”s who are found with disproportionate assets and caught by CBI and punish them under the Law, only then the people will trust you.else you can continue till 2019 when people will decide whether they want you or not.same would apply to the state govt in Maharashtra. The CM only speaks lacks action.

    The ultimate 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.

    He cannot take action against his own minister what justice can be expected by the common man.

    Govindarajur Rajarethinam December 10, 2016

    Instead of demonetisation, government has intensified the searches and raids in the suspected people as that of now made which will definitely yielded good results without affecting common poor.

  • Juhi Chawla December 10, 2016

    Feku promised to create 10 million jobs & improve manufacturing sector. Both failed now turned this FAILED note ban move to extend another 2.5 years with jumlas. Feku & jootley best suitable for PROFESSOR JOBS. Only talking NO ACTION!!

  • Dinesh December 10, 2016

    I wonder how the problem will be over?

    Business is all gone for 1 year. There is a serious recession which is forced on 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. Former Prime Minister Manmohan Singh who is a noted economist, former RBI governor and former Finance Minister of the country, dubs the demonetization move as an 'organized loot and legalized plunder'.

    How will they cover failures.

    How exactly Modi can keep making false promises. And get away with it.

    Is it all about cyber cell forced propaganda in my country.

    • ind December 10, 2016

      @Dinesh: Just pray this will be over soon. We need to be worried about Modi’s desperation if this plan fails.

      A fortnight before the official announcement, a news report in the Hindi daily Dainik Jagran quoting RBI sources mentioned about the coming release of new 2000 rupee note alongside withdrawal of 500 and 1000 rupee notes. Similar news came in The Hindu Business Line on 21 October 2016 which also mentions about coming 2000 rupee note and about possible withdrawal of 500 and 1000 rupee notes.

      If most of the money finds its way back into the banking system without raising alarms - It would mean a total failure of Modi’s demonetization charade. That would imply the govt. and public both lost money, time and nothing was gained. Domestic and international media will make a joke of such a scenario.
      This article may contain an excessive amount of intricate detail that may only interest a specific audience. Please help by spinning off or relocating any relevant information, and removing excessive detail that may be against Wikipedia\'s inclusion policy. (December 2016)

      If that happens, desperate Modi will go to any length’s to find any accounts which were used as proxies or whatever he can think off. Even people with white money will be questioned and harassment will go to extremes.
      The ban on high 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 in the business of money laundering.

      And that’s going to be ugly.

  • Hemendra Malviya December 10, 2016

    Can foresee the following effects on our economy and polity:

    1. With this decision, black money in India worth few lakh crore may be at stake.

    However, there were many who still hoarded the black money, and in order to tackle them; the government announced the demonetization of 500 and 1000 currency notes.

    So it has to be converted into white through the routine banking channels, or will else turn into trash. Hence people may end up declaring an additional black money or showing an excess income in this financial year.
    The demonetization policy will force people to pay income tax returns. Most of the people who have been hiding their income are now forced to come forward to declare their income and pay tax on the same.

    Either way, the tax income is likely to sour.

    2. The real estate and the land prices are likely to collapse, as a large chunk of black money will go out of circulation. If the purchasing power of people goes down, it will impact the prices of land and properties.

    The government is taking all the necessary steps and actions to meet the currency demand and soon the trial and tribulations of the people will be over with the smooth flow of the new currency.

    3. Corrupt politicians and bureaucrats will have “bure din”, at least over a short term, till the new 500 and 2000 rupee currencies are floated in the market.

    4. Election expenditure will be a huge crisis for the political parties, as neither the candidates nor many of the voters are used to currency-free elections.

    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.

    5. Over a short term, the country will be cash-starved and there will be a huge crisis for “over-the-counter” economy (Read: Grocery Shops, Vegetable Mandis, Local Restaurants).

    6. Some businesses such as Gold Smiths, Money Lenders, Hawala Operators etc. will be the net losers in the game.

    7. Banking system may be crippled down on account of an unprecedented rush to change currency notes, obtain plastic currency & card swiping machines, amongst others.

    The announcement of the demonization of the currency has caused huge inconvenience to the people. 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.

    8. The success or failure of plastic money and eCash models might be subject to the effective Cyber Security Measures that the Banking System intends to take.

  • Nitesh Dhanuka December 10, 2016

    Is this really a surgical strike against corruption ? ” A old lady with some stitches on her saree from a rural area ( village unknown ) came to a bank with a 500 note which doesn’t have year of make printed on it so bank refused to accept that note as such notes are now not valid . It was so painful for her that she started crying . She asked for help but no one could . I asked her from where did she got that note ? She replied that she saved that note for her difficult times . #Indians specifically womens Do have a mind set of savings little part of money which they get for running house hold activity . My question to you sir is this step right for her ?

  • Rishad Alavi December 10, 2016

    Prediction - by the end of the deadline, that is 30th Dec, Modi govt will fill every “Jan Dan yojana” account having balance less than xxx amount with cash bonus (No, not 15 lakh But say, 10k or 25k)

    Effects -
    1) He will “claim” this to be dividend of black money recovered. (It’s a cheap investment compared to election rallies and other spent And part of it will come to the party itself - refer point 3)

    2) Our memory is short and votes cheaper. So, his political image will be on a high again.

    A daily limit on withdrawals from ATMs was also imposed varying from ₹2,000 per day till 14 November, and ₹2,500 per day till 31 December. This limit was increased to ₹4,500 per day from January 1, and again to ₹10,000 from January 16, 2017. Limits placed vide the circulars cited above on cash withdrawals from Current accounts/ Cash credit accounts/ Overdraft accounts stand withdrawn with immediate effect. RBI increased the withdrawal limit from Savings Bank account to Rs 50,000 from the earlier Rs 24,000 on February 20, 2017 and then on March 13, 2017, it removed all withdrawal limits from Savings Bank Accounts.

    3) God knows how many of that 1rupee account belong to actual people. Many would be binami accounts and the sum of all 25k, into these 10s of thousands of account would fund the party

    So, in the end, people forgets the hardship, “thinks” black money is recovered and distributed, and all the political oponents forced to hail the move for moral reasons.

  • Manish Jain December 10, 2016

    Leaked: Questions from Modi’s Survey which did not feature in the App.

    Q. Modi ji is solely responsible for death of over 70 innocent Indians?
    Opt 1: Fully Agree. Opt 2: Partially Agree. Opt 3: Can’t Say.

    Q. Modi ji is shamelessly lying to the Nation on preparations on the Currency Change Procedure?
    Opt 1: Fully Agree. Opt 2: Partially Agree. Opt 3: Can’t Say.

    Q. Modi ji is responsible for all the nationwide chaos?
    Opt 1: Fully Agree. Opt 2: Partially Agree. Opt 3: Can’t Say.

    Q. Modi ji tried to pull a Stunt, without any knowledge on the impact it would have on innocent Indians?
    Opt 1: Fully Agree. Opt 2: Partially Agree. Opt 3: Can’t Say.

    Q. Modi ji is working hand in glove with the corrupt Industrialists and destroying the lives of poor people?
    Opt 1: Fully Agree. Opt 2: Partially Agree. Opt 3: Can’t Say.

    Q. Modi ji is a very bad actor and gets caught everytime he tries shedding those crocodile tears?
    Opt 1: Fully Agree. Opt 2: Partially Agree. Opt 3: Can’t Say.

    Q. Modi ji is a compulsive liar and the entire demotisation was lesser abt black money and more abt filling the Banks with money so they can lend it back to the same Industrialists who looted them previously?
    Opt 1: Fully Agree. Opt 2: Partially Agree. Opt 3: Can’t Say.

    Q. Modi ji taught us to hate every Pakistani after Uri Attacks, and so by logic, he should be jailed for the death of 70 plus innocent countrymen?
    Opt 1: Fully Agree. Opt 2: Partially Agree. Opt 3: Can’t Say.

    Q. Modi ji will kill our Economy with his stupid decisions since 84% of our Economy runs on cash?
    Opt 1: Fully Agree. Opt 2: Partially Agree. Opt 3: Can’t Say.

    Q. Modi will take us back to medieval age?
    Opt 1: Fully Agree. Opt 2: Partially Agree. Opt 3: Can’t Say.

    Q.Modi ji leaked the Note Ban news to his close Industrialists before hand helping them get rid of their stash in advance?
    Opt 1: Fully Agree. Opt 2: Partially Agree. Opt 3: Can’t Say.

    Q. Modi ji is a big jumlebaaz cos why else would he be so afraid of revealing all of their 2014 Election Fund source and expenditure?
    Opt 1: Fully Agree. Opt 2: Partially Agree. Opt 3: Can’t Say.

    Q. Modi ji has all the time for Election Rallies for his party, while his duty to the Nation of attending Parliament are conveniently secondary?
    Opt 1: Fully Agree. Opt 2: Partially Agree. Opt 3: Can’t Say.

    Q. Our country has become a Circus ever since Modi ji was voted to power, with their stupid medieval ideologies on what to eat, what to pray, what to wear, what to watch, etc?
    Opt 1: Fully Agree. Opt 2: Partially Agree. Opt 3: Can’t Say.

  • Azharuddin Pilakodan December 10, 2016

    Day by day modi proves that he is not gonna become the prime minister of the poor people. He is just putting them into more trouble. And shamelessly make speeches across the country as if he did achieved something.

    The demonetization policy is being seen as a financial reform in the country but this decision is fraught with its own merits and demerits.

    Yeah, he achieved the credit of being the person who only implement blunders..

  • Ankit Chauhan December 10, 2016

    #Namo - out of the world.. best leader, legend, specialist in surgical strike…showed the world what equality is… demonetization… He is the dark knight,,, a watcher,,, fighting alone with corruption and the corrupt…. todays youth is with him….n always will be…sare chorr ikatthe ho gye hain ek sath modiji k against so guyss this is our tym to do something for our country…support modiji and fight against corruption..

  • Danish December 11, 2016

    The kind of moves happening everyday by Govt, itself shows that Govt is not sure what they really wants to do and they are hardly bothered about the inconvenience to public, Ban of currency at Petrol pumps is like sealing vaults and houses of people instead of catching thieves.

    thats big faliure and blunder at their ends and worst part that they cant acceot this, I am sure people who are getting their fuel tanks fulled are not Vijaya Malya, Adani, Ambani, and other Netas who can convert their thousands of crores black money, Modi is running after penuts and letting the big shots go.!

  • Sinst December 11, 2016

    Blackstone’s formulation - Wikipedia’s_formulation
    In criminal law, Blackstone’s formulation is the principle that: “It is better that ten guilty persons escape than that one innocent suffer”

    But our hon’bl PM is exercising the reverse of the philosophy. He must be awarded a special bravery (cruelty) award

  • Satyajit M December 11, 2016

    Mr. Jaitley, please try to go with your card (and don’t use cash) from the place you live to any direction you want by only 100 Kms through public transport and taking food from normal restaurants (not embedded with Stars*) , and spend just a day.

    But experts believed any slowdown would only be short-lived once the systems adjusted to the new normal, especially if the government heeded calls to lower interest rates by groups like the Federation of Indian Chambers of Commerce and Industry (FICCI). Credit rating agency India Ratings & Research maintained its GDP growth forecast for India at 7.8% for FY17, albeit with a downward bias.

    In a theater to nab a terrorist, if there is a frisking, it is acceptable.
    But, in a nation of more than a billion, if you try to carpet bomb the whole nation (30 days completed today), with a logic to kill some terrorists, do you think this could be a sensible plan to be taken, and executed by a Government of that nation?

  • Ibrahim Shariff December 11, 2016

    This is the problem when uneducated bigots run our country!

  • Prasham Kothari December 11, 2016

    If someone thinks that 50 days isn’t sufficient time to convert black into white or old black into new black… He/she is day dreaming.

    Yes there will be some cost but its manageable for sure.

  • Mohammad Âlï December 11, 2016

    Before banning the currency one should be ready with alternate currency and sufficient amount with them..Without making all arrangements at a sudden ban is not good .. even though now there is no limit cash in banks so many people are suffering from cash crisis .. one should take step forward on this ..

  • Pravin Kumar December 11, 2016
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