500 and 1000 rupees notes were a part of our life, we deal with them on a daily basis but on 8th November, our Prime Minister Narendra Modi ji announced that both 500 and 1000 rupee notes will no longer be legal tender and will be a just a piece of paper with no value. Both notes were made invalid for use but people were given time to exchange their old notes with new ones till 30th December 2016.
Hospitals, airports, railways and petrol pumps accepted both the notes for some time. People were directed to submit their money in banks and take new currency from the banks, new 2000 rupee note, and new 500 rupee note.
Our government took this step to break the backbone of corruption and lower the rate of corruption in India, they succeeded a little bit but not what was excepted from this big firm step towards corruption. As the bank managers of different banks took advantage of this and they black the new currency notes, they increased the corruption by exchanging old notes and submitting old notes in poor accounts without permission. People got injured in a long queue waiting outside banks, they got fainted, etc. Police misbehaved with them, people were supporting this step of demonetization and government try to issue new notes in large quantity so that people can get some to buy essential items for survival.
Addressing the nation, PM Modi ji said that ‘this firm step was needed to tackle the disease of black money’. He also said that ‘Corruption is deep-rooted in our nation. Our enemies are running a racket of fake currency from outside. Corruption, fake currency, and terrorism are festering wounds, holding back the economy’.
The government gave the option to the people of India, who were unable to exchange money till 30th December 2016; they can exchange their old money from Reserve Bank Of India till 31st March 2017.
Invalidity of 500 and 1000 rupee notes was a big step towards root out the black money from India and also it was beneficial because our enemies were making fake Indian currency but with this step they were at loss and all of their notes will be invalid and they cannot make new notes so fast and so the terrorist attacks were minimised and all the illegal activities were stopped, minimised to some extent. The Naxalite group of people was also affected by this step and this was an advantage for us. The market of fake currency was affected and the people related to it were at a great loss.
During this period our Income Tax department was active and raided many places and took all the black money and illegal property in their possession and took actions against the black money holder.
Demonetisation had affected many areas like-
- Banking- This is the area which was most benefitted in the period of demonetization as they collected money from both sides, people and government and was benefitted the most.
- Human Trafficking– There was a huge fall in the number of cases of human trafficking.
- Radical Groups– The invalidation of 500 and 1000 rupee notes shooked the Maoist and Naxalites. These people surrender and rate of surrender reached its highest because of demonetization.
- Deaths– It was reported that several people died during the period of demonetization while standing in queues outside banks for hours to exchange their old notes.
- Stock Market and Business– Both the areas were affected from demonetization as both suffered loss, there was fall in the stock market and in business, there was a slow rate of working.
- Agriculture– Our agriculture sector is highly dependent on cash as every transaction is in cash and they were at a great loss because of it and demonetization led to unavailability of cash to pay for food products and to buy items to produce more products.
This whole scenario of invalidation of 500 and 1000 rupee notes had both good and bad impact on the people of India. But at the end, people were in support of this step as it was a good initiative started by our government.
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