Posted by: aaisunkaata November 13, 2016
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Hi people don't understand why this and what long term affects this.. here are my some point that may open some views for you.
So first we need to understand "What is demonetization of currency is"
demonetization is the act of stripping a currency unit of its status as legal tender.
After Modi announced that the notes of Rs 500 and Rs 1000 "will not be legal tender from midnight tonight" and these will be "just worthless pieces of paper".
What I understand the reason is :
1) To tackle black money in the economy.
2) To lower the cash circulation in the country which is directly related to corruption in country.
3) To eliminate fake currency and dodgy funds which have been used by terror groups to fund terrorism, mafia funding, other illegal funding etc.
The surprise move by government is a disaster for people who have accumulated lakhs and crores of unaccounted cash under their pillows and mattresses.
It has very long term affects, we can not say that it will 100% finish the corruption or black money but defiantly discourage the people to store black money, that is the main thinking behind all this act, Obviously people have fear in mind that if I store 2000 and 500 currency again as black money not sure when they going to banns this again.... So its all mind and economic politics game.
So first we need to understand "What is demonetization of currency is"
demonetization is the act of stripping a currency unit of its status as legal tender.
After Modi announced that the notes of Rs 500 and Rs 1000 "will not be legal tender from midnight tonight" and these will be "just worthless pieces of paper".
What I understand the reason is :
1) To tackle black money in the economy.
2) To lower the cash circulation in the country which is directly related to corruption in country.
3) To eliminate fake currency and dodgy funds which have been used by terror groups to fund terrorism, mafia funding, other illegal funding etc.
The surprise move by government is a disaster for people who have accumulated lakhs and crores of unaccounted cash under their pillows and mattresses.
It has very long term affects, we can not say that it will 100% finish the corruption or black money but defiantly discourage the people to store black money, that is the main thinking behind all this act, Obviously people have fear in mind that if I store 2000 and 500 currency again as black money not sure when they going to banns this again.... So its all mind and economic politics game.