Merits and Demerits of Demonetization in India
The decision to demonetise the currency of India by the Modi led government has taken the people aback and there are mixed reactions to this decision. Well as we all know that every decision has its merits and demerits and similarly this decision also has many. This action has been accepted by a few people and has been opposed by many as well. As they say; doing the right thing will always get you into trouble as it will benefit the weaker section and cause a hurdle to the powerful lot and stop them from becoming more powerful. Let us take a look at the merits and demerits of the demonetisation in detail.
Merits of the demonetisation in India
- The decision to demonetise was to evade the black money which was prevalent i0n the system from quite some time now. This was because the black money being stored in higher denominations and was not circulating into the system from the fear of being caught by the Income Tax department.
- It is known that 86% of the money circulation has been wiped off from the system in a night’s time.
- This will keep off the corruption as well as high value of money will now be unable to be given as corruption.
- This move will get the investment from physical assets like gold and real estate into the financial system of shares and mutual funds.
- This has also made the cashless transactions to boost up and make less use of physical cash and use it directly from the bank accounts.
- It will help the government to keep a track on the spending and question the huge transactions which have gone unquestioned due to the black money.
Demerits of the demonetisation in India
- In spite of the master stroke by the government to evade black money, the unpreparedness has led to the common man suffer a lot with no availability of cash and lesser bank withdrawals.
- For the people who are dependent on the per day wage basis suffer a lot as the demonetisation has led to little or no cash in banks and ATMs making these labourers go out of work.
- The long queues at banks and ATMs with little or no cash to provide has put the entire system into jeopardy and go haywire.
- The people in villages and small areas have been hit majorly as most of their dealings have been in cash and with the lack of cash in banks they have become handicapped and are not able to do business.
- It has been over a month now and still there are cash crunch being faced even in banks.
- The figures have been giving nightmares to the government as almost 4 lakhs jobs have been vanished from the system and 31.9 million people employed in textile and government jobs have been on no wages since the announcement day.
All this has led to a mixed reaction among people of India and everyone is doing their best to get out of the situation. Let us hope that the decision brings positive results and clears the air as soon as possible.