Free 1000 words essay on Impact of note ban in India for school and college students.
India witnessed a historical decision in the month of November 2016, when Rs.500 and Rs.1000 notes were banned and completely withdrawn from the market, as per instructions of our Honorable Prime Minister Shri Narendra Modi. All of a sudden, there was a sudden growth of anxiousness amongst the Indian citizens as these were the highest denominations notes till date. Therefore, almost 87% of cash in the Indian economy suddenly became invalid that amounts to around Rs. 14lakhs crores! Aimed at curbing black money and use of it in terrorist activities, this step was undoubtedly a big step towards ending corruption by Shri Narendra Modi. However, there have been various other implications of this step in almost every sphere of the lives of the common people of India as well as broadly over the whole of Indian economy. Let us have a detailed look at some of the pros and cons of the recent note ban.
Positive Impact of note ban in India
Bright Sides: The advantages of demonetization in India in the short as well as a long run can be summarized as below:
- Ban of black money: There will be a drastic drop in the amount of black money in India. This is because all the unaccounted money of India today are solely in Rs.500 and Rs.1000 denominations and there are only two-way outs for the holders of the same. Either those have to be exchanged in the banks with valid ID and address proofs that will definitely attract Income Tax attention or those have to be simply disposed of off as they are of no use at present. Quite obviously, the basic aims to identify the black money holders and take strict actions against them have been more or less successful, at least to a certain extent. The unscrupulous black money holders have finally come out of the comfortable cot of corruption!
- The resultant decrease in criminal and terrorist activities: It is an open secret that all these black money was used to fund all kinds of criminal and terrorist activities. Therefore, this note ban will in turn help to bring down the level of terrorist and other criminal activities to a large extent. In other words, a very serious issue of national security is also been taken care of by the pros of note ban. Moreover, all kinds of illicit and illegal activities carried out by the land and underground mafia will come to a screeching halt. The most affected sector will be real estate as this sector involves only cash transactions and a huge amount of black money transactions.
- Fall in fake currencies: Almost ninety percent of fake notes circulated in the Indian system every year are comprised of Rs.500 and Rs.1000 denominations. Therefore, quite evidently, the note ban has completely abolished these fake notes from the Indian banking and economy.
Read Also : Essay on fake Currency and its impact on economy
- Inhibiting Inflation: Less cash in the hands of common man will make them spend less and in turn, will keep the prices of regular commodities at check. Less black money also will in turn cause a complete downfall in the level of inflation, as there will be less cash as compared to the number of goods. This will definitely help to check inflation. The major crucial sectors that will be benefitted from this inflation check are the medical and higher education sectors.
- Dive towards digitalization: The cash ban will automatically force the people to use more plastic money in the form of online transactions, credit cards, debit cards, mobile wallets and the like. This obviously is going to enable India to go cashless and the dream of Digital India will definitely come true. As fewer currency notes are present in the system, there will be less environmental issues.
Negative Impact of note ban in India
Dark Sides: Apart from the above-mentioned advantages, there are various disadvantages related to this latest note ban of India. Some of these are mentioned below:
- Uncontrolled rush: There will be an undesirable and uncontrolled rush of the common mass towards the ATMs and banks for the purpose of currency exchange. As the public to staff ratio in the banks is alarming already, this escalating increase of public footfalls in the banks can create a huge confusion and chaos in the bank’s premises leading to the extreme fiasco. There have been incidents of fights also due to which police protection was taken in various branches of the banks. Moreover, although ATMS are the alternative sources of cash, availability of the new notes is extremely low and this can seriously cause more queues and unnecessary harassment.
- Vices of illiteracy and nil awareness in the rural areas: The people from the tinsel towns or the cities can still be armed beforehand in various ways to combat this newly developed situation. They can also make use of plastic money in doing the transactions. But, the people in the villages are hardly aware of the new developments and the effects of the same can adversely affect their livelihoods as they are completely dependent upon cash transactions.
- Ill Impacts on certain sectors: Some sectors are there, which are absolutely dependent on cash such as daily wage earners, vegetable vendors, auto rickshaw pullers and various related and allied sectors. They will definitely be hit by the impact of note ban. Moreover, they do not get adequate time to visit the banks for currency exchange and they even do not have the necessary knowledge about the systems and procedures related to bank transactions. All these can grossly give rise to a grim situation for the people working these sectors.
- The increase of misguides: No matter whatever good happens in a society, there will always be some people who will misuse the same to misguide the common people such as the opposition parties who will try to reap some benefits by focusing more on the ill effects of note ban and creating unnecessary panic amongst the public.
Well, after a thorough outlook and 360-degree view of the whole issue, the bottom-line can be summed up as – A little suffering today can lead to a much better India in the future.