Demonetization Of Currency

Now lets have a large discussion on demonetization of currency that is presently trending in India.Media has got it's coverage focused on problems faced by people due to demonetization of currency and government is striving hard to get the black money holders into the light and of course this will be discussed until new year eve.So a lot is going to happen these days due to demonetization of currency. Peoplezmind intend to discuss effects and the benefits of demonetization of currency.

What is Demonetization?
                                Demonetization is the act of cancelling the currency from it's status as legal tender.Whenever there is a need in the change of currency system,demonetization is necessary.The old unit of currency is replaced with the new currency.In this case the old 500 and 1000 currency were banned and the new 500 and 2000 currency were brought into use.

So what is the necessary for demonetization?
                                    Some countries opt out demonetization as an act of improving living by eradicating the black money and black money holders.Economic conflicts may arise due to demonetization.Presently India is facing those economic issues and lets hope this is a good step for a sustainable future.

In 2016,november,Indian government has announced demonetization by cancelling the 500 and 1000 rs notes which account for the 86% of the country's cash supply.Prime minister Narendra Modi announced Digital India and the main aim of demonetization is to eradicate black money earned from laundering,scams and other resourses,fight tax evasion and promote a cashless economy.So by this the black money holders who were having huge amount of money need to convert them into white money by depositing in the bank which needs the proof to show the income tax.If failed to show the proof,then as per the law 200% income tax will be levied on them so there by dragging the black money holders into public.

Problems faced by common man
                       Now demonetization is in act,there are many problems faced by common people.As India is largely populated country the reserve bank of india could not provide sufficient new currency as per the needs.People had to wait for long hours in queue in the banks to deposit and near ATM's to withdraw money.As this process is a time taking,the government had already told people to be patience since this act is going make future more brighter than now.But for the common people , mostly who have weddings in the month of demonetization needs to face lot of problems due to lack of money.Government is trying to go cashless by invoking every citizen to make cashless payments.But in the future cyber crime may increase by hacking and cloning of credit and debit cards.The question is "de we have perfect cyber security that stops all the cyber crimes?"

There is a rumor that is going on in every street and everyone's talking about it."government has informed some of the millionaires and billionaires in the country before making it to the public.As a result most of them converted their black money into white money by investing in firms and establishing new companies for example 'JIO'."

So there is nothing common man can do.He can neither tell his problems about his financial crisis to Prime minister nor he can resolve them by himself.Every time common man is the victim.

Please leave a comment of your opinion about the problems faced by common people due to the act of demonetization.