DEMONETISATION IN INDIA: ADVANTAGES AND CHALLENGES

Journal Title: IJAR-Indian Journal of Applied Research - Year 2017, Vol 7, Issue 9

Abstract

This paper focuses on the Demonetisation of all Rs 500 and Rs 1,000 banknotes in India. The main Objectives behind this move were to unearth black money, to put check on corruption, curbing of terror nancing, and demolish counterfeit currency. Another motive of the government was to create a cashless economy. Cashless transactions have the benet of transparency i.e all transactions can be traced and tracked. This helps the government to track payment to terrorist organizations and other anti-national activities. According to Government of India the cashless policy impact will be felt in modernization of payment system, Convenient mode of payment, Capital formation , Unearthing of black money, Tax collection improve , Terrorist and naxalites funding control, Transparency and monitoring, Reduction in the cost of banking service, Reduction in high security and safety risk and also curb banking related corruption. Demonetisation has encouraged the entire economy to use less cash but has left various challenges for the people like India is a currency dominated economy. It is noticed high level of cash circulation in India. The biggest disadvantage of the cashless economy is that not everybody has the knowledge of doing digital transactions and hence its reach is limited to urban and semi-urban centers only. The biggest fear is the risk of identity theft. Another demerit of the cashless economy is that digital mode of payments like the credit card, wallet payments, internet banking involves some transactions fee which is not the case with cash transactions. As one can see from the above that cashless economy has advantages as well as disadvantages and any government thinking of adopting cashless economy model should carefully analyze the merits and demerits and then take the decision as the cashless economy cannot be imposed on the people rather it can be gradually adopted by the people of the country.

Authors and Affiliations

Dr Virender Koundal

Keywords

Related Articles

DEMOGRAPHIC AND SOCIOECONOMIC PROFILE OF FEMALE DOMESTIC WORKERS IN AN URBAN SLUM OF CENTRAL DELHI- A MIXED METHOD STUDY.

Background: Labour pool engaged in informal or the unorganised sector is still among the least investigated employment conditions in ambit of public health research. Present study aimed to assess the living conditions an...

EVALUATING THE ROLE OF LIFE STYLE MODIFICATIONS IN THE PATHOGENESIS OF SHEETAPITTA~URTICARIA

Life style diseases are defined as diseases linked with the way people live their life. It includes daily routine of people comprising their food habits, sleep pattern, other activities, emotional set up etc. keeping thi...

Comparison of the analgesic efficacy of tramadol and diclofenac sodium rectal suppository in patients undergoing aproscopic tubal ligation

Background: The aim of our study was to compare the analgesic efficacy of tramadol and diclofenac sodium used as rectal suppository in patients undergoing laproscopic tubal ligation and also to compare their side effects...

HYPER TACTILE DYSFUNCTION IN CHILDREN WITH AUTISM

Autism is a lifelong developmental disability that affects how people perceive the world and interact with others. Autistic people see, hear and feel the world differently to other people. A Descriptive and Qualitative s...

Analysis of Money Supply in India during 2009-10 to 2013-14

Money supply plays an important role in terms of affecting the national income, prices, trade etc. Th-ere fore, regulation of required changes in money supply is pre requisite for the smooth functioning of the economy. I...

Download PDF file
  • EP ID EP460711
  • DOI -
  • Views 83
  • Downloads 0

How To Cite

Dr Virender Koundal (2017). DEMONETISATION IN INDIA: ADVANTAGES AND CHALLENGES. IJAR-Indian Journal of Applied Research, 7(9), 58-60. https://europub.co.uk/articles/-A-460711