By Anshika Verma08, Nov 2023 11:01 AMjagranjosh.com
What is Demonetisation?
It is a process by which countries opt to reintroduce defunct currencies as legal money. With it's announcement in November 2016, the goal was to root out black money. Tap to read how it impacted India!
India has become cashless
People in India now make fewer cash transactions, seven years after demonetisation thanks to UPI (Unified Payments Interface) and other digital payment methods.
Putting a complete full-stop to corrupt practices
The complete cessation of illicit activities occurring inside the black money market. People are now scared to participate in cash hoarding since they will naturally fear legal action.
Witness a sophisticated banking system
One of the most definitive benefits of demonetisation lies within the finance and banking sectors. The government has always made an effort to move the country toward a cashless financial transaction system.
Reduced liability for the Government
The action has lessened the liability and risk associated with managing liquid money. Soft money is usually simpler to manage than hard money.
Increased GDP levels
Over the years since demonetisation took place in 2016, the growth of GDP (Gross Domestic Product) in India has increased.
A Necessary Move
Although the demonetisation decision was initially met with criticism. Demonetisation has partially eliminated the prevalence of fraud and corruption in the Indian banking system.