Recently Indian honorable Prime Minister Sri Narendra Modi has demonetized the currency of India featuring Rs 500 and Rs 1000. The notes were banned on November 8, 2016. Because of this demonetization, there have been both advantages and disadvantages of the nation.
The advantages for the nation are supposed to wipe out black money, and the disadvantage is minimizing the amount of cash transaction. So, there are lots of pros and cons regarding the demonetization. However, to know more about this reason, go through this post, where I have highlighted the pros and cons of demonetization in India.
Pros of Demonetization
The bellow points are some of the prose of demonetization in India. Scroll down and check out the pros.
- The demonetization helps the nation from corruption and radically supposed to wipe out black money. As nobody will not be able to exchange the money from the bank in fears of getting penalize.
- The terrorist who involves in the counterfeit currency will not be able to carry on the business for some times. There will be a shortage of money for the terrorist.
- The India banking system will improve those cashless societies, and the credit will increase and increase financial enclosure. This will result in all the white money from the people will be saving in the bank.
- It will reduce the cost of cash handling and also reduce government responsibility. It will also reduce tax avoidance and although there may be certain trouble in the country. But this demonetization will boost the Indian economy in the coming world.
- Demonetization will help the government to track down and to recover the huge amount which is an unaccounted and unpaid tax by many people in the country. With this banning of high-value currency, there will be high impact on people with no option but to declare their money.
- By pulling out, money people will be admitted to pay the tax for their illegal amount, and this will increase the economy of the country.
- The government will have more value in world bank as with increased of tax payers the country GDP will be higher.
Cons of Demonetization
The bellow points are some of the cons of demonetization in India. So, scroll down and check out the cons.
- The limits of cash transactions lead to a severe problem to the retailing, restaurant, Jewellery, real state, luxury brand, logistic and many other segments. Those big companies face highly regarding this demonetization.
- Due to the less amount of cash withdrawal from the bank, many people in the country cannot go for shopping and marketing.
- In village area, there are lots of cash problem, no ATMs from where money can be withdrawn, no availability of bank. So, the new currency notes are not available to use.
- One of the most threats that arise due to demonetization is the impact on the economic growth of the country. So, it is expected to fall the GDP growth up to 5.8% in 2017-18.
- Lack of money for public in day to day activities and also there are certain problems that public were facing like transportation, shopping, student fees payment, etc.
- Printing new currency at the same time has an impact on government which cost of production may be high.
These are some of the pros and cons of demonetization in India. Perhaps, demonetization certainly will enhance the Indian economy in the long run. So, I hope by reading this post, you got good information regarding the demonetization India.
- cons of demonetization