My opinion on Demonetization policy.
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.
Recently, On November 8, 2016 Government of India announced the demonetization of all 500 and 1000 rupee notes.
My opinion on this act is completely against the government because of the negative effects it created in the society and I list them point by point.
1. Cash shortage:
As this was announced suddenly by the government people had no clue that they should already have hard cash with them and when they were in their senses they could not because of India’s huge population.
2. Stock Markets:
Due to the sudden announcement the stock markets faced a lot of loss in points.
3. Agriculture and Transportation:
Farmers could not meet their needs because old notes were not accepted and in highways truck drivers faced a lot of issues in toll booths because old notes were not accepted.
4. Drop in Industrial output and economy rate.
5. Small scale industries faced a lot of losses.
Ex: All the cigarette companies faced around 30% to 40% losses
6. This act led to the circulation of fake 2000 rupee notes which was a big blow to the government.
7. Introduction of Card payments in all sectors including Railways would mean very difficult for the people who are illiterate.
8. Finally Deaths, as people waited for a very long time in front of banks to exchange their old notes.
So, Even though Demonetization has some positive effects like the reduction of human trafficking and increase in the revenue of the government the negative effects of it dominate and prevail.
Within one day of the announcement fake notes were printed and circulated.
It would have been a lot better if the act was carried out with prior information so that the people of India would have been prepared and the huge tension and urge would have reduced.
Apart all this, It was introduced for a better India and so I wish India will be and become a better nation to live in.