DEMONETISATION
'Demonetisation' though a vague term, means to stop circulation of
currency consisting of a particular denomination of currency notes and coins.
The government through Reserve Bank which is running under the central
government, impose ban on the legal tender of the aforesaid curreney notes
coins. It means the legality of those currency stands cancelled. These devalued
notes/coins bear no value and become a piece of rotten paper and metal from
which they are made of the most important and memorable day 8th Nov., 2016
is in Indian history, Our prime minister Sri Narendra Modi, on behalf of the
union government announced that 500/- and 1000/- denomination of currency
notes will be banned and no longer will be legal tender notes and became
devalued from the midnight of 8th Nov., 2016. A particular time limit was
announced to exchange those currency notes with the currency of other
denomination's notes and coins. The government's plea in favour of
demonetisation is its merit which will be (i) helpful to check blackmoney flow,
(ii) to stop or a brake against terror funding, naxal and terrorist activities,
(ii) to encourage digital transaction, (iv) fairness in direct tax, sales tax and
other taxes, (V) action against illegal trading and so many other illegal activites.
The government through demonetisation became successful in its mission
to a larger extent and the economical condition of the country will gradually
improve, with around success in future.
No comments: