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POSITIVE IMAPCTS OF DEMONETIZATION : WE MUST KNOW
By: Tunisha Thakur
Third Year Student, Lloyd Law College, Greater Noida.
The demonetization move which is presently considered as the mother of all change in India has begun demonstrating its positive effects in brief time. The demonetization assertion expresses that 500 and 1000 notes reformative move has brought some hard life for ordinary citizens yet it will pass soon. The general population of this nation appear to be exceptionally excited about it and prepared to take this torment. This is the means by which majority rule government works where subject takes an interest in country building and strategy making.
Positive impacts of demonetization have brought many overlay impacts on nation and society.
Over Forged currency
According to the Indian statistical institute the circulation the total amount of fake currency in India is Rs 400 crore at any given point of time, it also estimated that around Rs 70 crore fake currencies are being injected into India every year.
Over Black Money
Black money considered as a malignancy in any economy, it is parallel economy which debilitates the establishment of any nation. It is assessed that in India the aggregate sum of dark cash is Rs 3 lakh crore. With this single triumph of demonetization all the dark cash will either come to record book or will be wrecked.
Over Bank Deposits
It will-known fact that close around 86 percent money course in India was made out of Rs 500 and 1000 cash notes. Furthermore, demonetization of these notes profited which was as 500 and 1000 Rs notes into the bank. RBI had announced bank had gotten Rs 5.12 trillion worth of stores until eighteenth November. This store of cash can support Indian GDP by 0.5 to 1.5 percent. India’s biggest open part State Bank of India said that it had gotten Rs 1.27 trillion worth of money stores.
Over Real Estate Cleansing
It is repeatedly said that real estate industry is built on black money. The extent of black money circulation in the sector is huge. According to report at least 40 percent of real estate transactions in Delhi-NCR are being done in black money. The demonetization move will curb the flow of black money into real estate sector.
Over Financial Inclusion
The inflow of cash into banks will enable them to offer subsidized loans and other facilities to Jan Dhan account holder. The share of Jan Dhan accounts in total deposit base of the banking system is under 1%. The demonetization drive of higher denominated notes might proper cash deposits in Jan Dhan accounts. And this move will also make Jan Dhan accounts holders to be accustomed to Banking system.
Over Hawala Transactions
Demonetization has badly affected the Hawala rackets. Hawala is a method of transferring money without any actual money movement, intelligence reports indicate the Hawala route is mainly used as a means to ease money laundering and terror financing, with black money suddenly being wiped out of the market Hawala operations have come to constant halt.
Over Government Finances
The unaccounted money will make way into the formal channel. This will raise the income tax collections. This raised amount from income tax will help the government to reduce the fiscal deficit in the fiscal year 2017. The latest move will shift the economy from the unorganized to organized sector. And the formalization of unaccounted money will also facilitate the implementation of GST scheme.
Over Bond Market
The ban on currency notes will enhance the demand for government bond in the market. As we know it will improve cash deposits in the banks which will eventually lead to higher SLR (statutory liquidity ratio) demand.
Over Naxalities and North- East insurgency
They are the group whose oxygen is black money. They are the worst victim of demonetization. Therefore they term this move as Financial Emergency. It is estimated that their yearly turnover is more than Rs 500 crore trough funding, NGO’S, forgery, extortions and local taxes. This massive money used for recruitment, arms, foods, medicines and shelters. With demonetization move, all these stashes of money is no more than a worthless paper. However it has also comes to notice that Naxals are using villagers to deposit the money in their accounts. The authority must look into this matter seriously and prevent any further deposition of such money. It should be noted that mentioned that after demonetization crimes like theft snatching dacoity etc dipped in many places like DELHI, PUNE and MUMBAI according to recent data.
Kashmir Unrest
The four-month-long unrest in Kashmir valley is on a backburner, thanks to demonetisation. No stone pelting on security forces has been reported in Kashmir ever since the demonetisation announcement was made. An intelligence estimate suggests that Pakistan sends Rs 1,000 crore annually to the separatists for fuelling unrest in Kashmir. The money is transferred through Hawala route. With Hawala transactions completely choked up, the separatists are now clueless. It won’t be wrong to say that “stone pelter” Modi completely shattered the Kashmir unrest with his stone called demonetisation.
DISCLAIMER:This Article was prepared or accomplished by Tunisha Thakur, Student of LLC Greater Noida in her personal capacity. The opinions expressed in this article are the author’s own and do not reflect the view of the LawOF.in
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