Demonetisation Essay

It was back in 2016 when the Indian government pulled the plug on 500 and 1,000 rupee notes-worth of currency in an effort to curb black money. Here are some sample essays on demonetisation.

100 Words Essay on Demonetisation

The move, dubbed demonetisation, has had a number of positive and negative effects for the citizens of India. Let's take a closer look at both sides of the spectrum.

On the plus side, demonetisation has led to a decrease in corruption and an increase in tax revenues. It has also led to a slowdown in real estate prices, which is good news for buyers. The negative side is that the move has caused a significant amount of pain for the average Indian citizen. Many small businesses have been forced to shut down, and people are struggling to get by due to a lack of cash.

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1. 100 Words Essay on Demonetisation
2. 200 Words Essay on Demonetisation
3. 500 Words Essay on Demonetisation

200 Words Essay on Demonetisation

Due to the demonetisation policy in India in 2016, the government withdrew 500 and 1,000 rupee notes from circulation, in an attempt to crack down on black money.

Demonetisation in India: History, Overview

Demonetisation is not a new phenomenon; it has been tried in countries all over the world, with mixed results. India, too, has a long and complicated history with demonetisation. In 2016, Indian prime minister Narendra Modi announced that all 500 and 1,000 rupee notes (approximately $7 and $14 USD) would be abolished overnight and would no longer be considered legal tender.

Aim | The goal of this move was to crack down on black money—undeclared funds that are illegally held and used. Modi and his administration believed that demonetisation would force people to bring their black money into the open, where it could be taxed and regulated.

Impacts on Indian Economy

On the one hand, it led to an increase in digital transactions, as people switched to using electronic methods of payment. This boosted the country's fintech sector, and helped to increase the number of people with access to banking facilities.

On the other hand, demonetisation caused a lot of chaos and hardship for ordinary people. Many small businesses were forced to close down, as they were unable to operate without cash. The policy also led to a steep decline in GDP growth, as well as a spike in unemployment.

500 Words Essay on Demonetisation

I remember my father standing in long queues at the bank to get our money exchanged or deposit cash. The demonetisation policy in India in 2016 had a number of positive and negative impacts on the Indian economy.

Benefits of Demonetisation

The Indian economy shifted after the demonetisation policy came. Let's look at a few benefits of demonetisation.

• Demonetisation will help to rid the country of black money. This will in turn impact many social issues, including crime, corruption and tax evasion.

• It will provide a boost to the digital economy as more people adopt cashless transactions.

There are certainly some short-term costs involved with this transition, but these are outweighed by the long-term benefits for India as a whole. It is important to note that the positive effects of demonetisation will not be immediate, and will take some time to materialise. But in the end, it is clear that this is a necessary and transformative step for India.

Demerits of Demonetisation

The consequences of demonetisation weren't entirely positive for India or its citizens.

• There was a massive disruption to the economy and everyday life. As cash suddenly disappeared, it caused a cash crunch, with people struggling to access basic goods and services in the days following the announcement.

• Many banks have tried to provide ways to deal with this cash shortage, including ATMs and digital banking, even these are struggling to meet demand. After all, not everyone has access to these technologies or has the knowledge required in order to use them effectively. This has caused a lot of frustration among citizens who rely on cash transactions.

• With banks unable to cope with increased demand, citizens have found themselves facing long queues outside banks and ATMs as they struggle to withdraw money. For those living in rural areas, this may be an even bigger problem as fewer banking facilities exist in such areas; this has led to vulnerable communities being especially hard hit by demonetisation.

Impacts on Businesses

When it comes to analysing the positives and negatives of demonetisation in India, it’s important to consider the effects on businesses.

• Businesses have seen increased access to digital payment methods and better transparency for transactions. This encourages people to buy items using digital platforms, such as mobile wallets or bank cards, instead of cash.

• Demonetisation has resulted in a huge decrease in the demand for goods and services. Since a large portion of Indian citizens rely on cash-based transactions, many people were affected by not being able to access their funds after the demonetisation announcement. This has put pressure on businesses who now have to compete with customers who are spending less money or switching to alternative brands due to reduced disposable incomes.

• Businesses that rely heavily on cash payments experienced a rupture in their daily operations, such as vendors who sell items at street markets and small business owners who run their operations through day-to-day collections. This has had an overall negative effect on India's economy and business landscape as more people are now hesitant to purchase goods and services - even if they have access to digital payment methods.