Sunday 27 November 2016

DEMONETIZATION

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What is demonetization?


Demonetization is the act of stripping a currency unit of its status as legal tender.
The old unit of currency must be retired and replaced with a new currency unit.
Demonetization means Withdrawal of a particular form of currency.
(Recent event: - demonetization of Indian currency note of 1000 AND 500 denomination)




             Demonetization in WORLD 



India is not the only country faced the demonetization there are many country faced the demonetization 


Nigeria

During the government of Muhammadu Buhari in 1984, Nigeria introduced new currency and banned the old notes.




Ghana

In 1982, Ghana ditched their 50 cadis note to tackle tax evasion and empty excess liquidity.





Zimbabwe

Zimbabwe used to have $100,000,000,000,000 note. Yes a one hundred trillion dollar note.

Australia
Yes Australia too faced the same but the whole sole purpose for the same is to replace the paper notes with plastic ones


There are many other countries which faced the demonetization.






      
                                 Demonetization in INDIA 


In year 1978

It was on 16 January 1978 that the country was told that the Janata Party coalition, has decided to scrap Rs 1,000, Rs 5,000 and Rs 10,000 notes.


                           

In year 2016

Demonetization in Year 2016 that is what on everyone lips from 8th of November 2016 when Mr. NARENDRA MODI (Prime Minister of India) on self announced the demonetization to be effected from 9th of November 2016.

In his speech he announced that notes of 500 and 1000 will no more be the legal tender and same is withdrawn. He stated that one having the same can exchanged/deposit the old currency notes in their bank account or post office account and takes the NEW CURRENCY NOTE of Rs. 2000 and 500.


                         


Great Initiation by Government

World knows Mr. NARENDRA MODI (Prime Minister of India) as Pro-Active leader again proved by this step,
Where Mr. NARENDRA MODI (Prime Minister of India) takes a surprising and brave step of demonetization

YES it is BRAVE step, Replacing / taking out 86 percentage (%) of currency which amounts to around Rs 115 laces crores, particularly in an economy which believes in cash transaction do matters a lot
                                                               AND
Surprising for whole nation when whole nation is back in to their home after their day schedule around 8 o clock this epic announcement is made.

Secrecy is maintained to its peak level

Where the whole nation are thinking about the releasing of new Rs 2000 Note they might not even thinking that this will happens to them next moment

Intentions of Government

Intentions for this step are very much clear they stated that demonetization helps the country to
·         

  •        Remove black money from system
  •           Cutting Terror funding
  •           Eliminate counterfeit currency  
  •           Remove corruption
  •           Reduce interest rates
  •           less Cash economy
  •        Economical parity in country

                            The step of demonetization made the honest person feels prideful.
By :- Young Minds Consultancy

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