Even international organizations like International Monitory Fund IMF have criticized this step of demonetization taken by Indian Government last year. But the government had tried to prevent people from depositing demonetised currency by changing rules during the day period.
As told to Anuradha Raman. The High Court dismissed the PIL stating that it could not interfere in monetary policies of the government. People of India faced the situation with patience and hope that they are assisting the Government in curbing the presence of black money from the Indian economy.
Large numbers of Shell farms are identified and their registration gets cancelled.
The decision of demonetization affected the election policy of the parties. Further, anticipating the failure of demonetisation in itself, the government started saying that demonetisation is only one of the many steps to tackle the black economy. The high value properties, those do not file income tax returns, are identified.
Due to this entire process, the GDP growth of India has fallen down from 7. The decision met with mixed initial reactions.
There is enough work that suggests that people with black money hold a very small proportion of it in cash. The original intent of demonetisation was to address the issue of black money, or what the Prime Minister called kala dhan. There are various reasons due to which the process of demonetization took place in India.
Reasons behind Demonetization in India: Consider the gains that may accrue in the coming year once tax authorities have combed through accounts with suspiciously large deposits. First it was cashless, then less cash economy, then formalisation of the economy.
Note that the demonetisation impact would only have been registered in the final four to five of Then the goalposts started shifting when it became apparent that the main reason was not justified by what was happening. The reduction in demand that arose in turn led to a crash in the prices of crops.
Demonetization in India was no doubt a bold step taken by the Government. Demonetization - A Success or A Failure Introduction Demonetization refers to the process of stripping the currency unit from the status of it as the legal tender. There must be a decrease in land price and various commodities due to demonetization.
But after the money supply started coming back to some semblance of normal, those dropped. That is now in the tax net. The big failure of demonetisation is that it was carried out without preparation and caused big losses to the unorganised sector.
Recently the new currency notes of Rs. It may later have all kinds of side-effects, positive and negative, but nevertheless the touchstone is its original intent.
It is now fighting hard in the Supreme Court against giving one more chance to deposit the demonetised notes that may have been left with the old and the infirm.A surprise announcement on 11/8/16, demonetization of India's and rupee notes meant most of the country's money had to be swapped for new notes.
A surprise announcement on 11/8/16, demonetization of India's and rupee notes meant most of the country's money had to be swapped for new notes.
Even though demonetization move created adverse short-term policy impact the real impact of demonetization must be assessed in the medium/long term,at this point of juncture we cannot precisely conclude whether demonetization is a failure or a success.
Indian banknote demonetisation Jump to Reuters reported that all the farmers they had spoken to in Uttar Pradesh and Madhya Pradesh said that demonetization had made things worse for them.
Background. The Indian government had Demonetisation process. Nov 08, · It is hard for the common people of India to form an opinion whether this process of demonetization is a success or a failure?
Government of India talks about the parameters to prove the success of eradicating black money, increasing tax collection and digitizing the economy. Hence, in my opinion the demonetization, though could have been more successful, was not a failure at all, it exposed the people with black money like never before and thus need to covering up does not arise.
Unlike most editing & proofreading services, we edit for everything: grammar, spelling, punctuation, idea flow, sentence structure, & more. Get started now!Download