Hindi IAS100
ias100.in Official Website for Civil Services Chronicle
Perfection is not attainable, but if we chase perfection we can catch excellence.

Vince Lombardi

9582219047/ 9582219048/ 9582948810


Quick Contact

You are here: Daily Dose
India Trashes the Cash

In a surprise announcement by the Prime Minister of India, at the stroke of midnight of November 8-9, 2016, the existing large denomination notes of Rs.500 and Rs. 1000 were demonetized in India. As per Reserve Bank of India data, the notes of Rs.500 and Rs.1,000 account for more than 85 per cent by value of all rupee bills in circulation and for Rs.14 lakh crore of the Rs.16 lakh crore-plus in circulation. This is by all means one of the boldest and biggest step taken in eradication of black money from the country. The secrecy with which the operation was conducted has left the country reeling in its after-effects.


The basic reasoning behind this step is that large currency notes are used more to conceal than to purchase. Cash plays a big role in drug trafficking and money-laundering schemes. While given its sudden implementation, the demonetization move will be very inconvenient to the common citizens but the government seeks to compensate this by significant benefits in the long term for all law-abiding citizens. Some deflationary effect will be observed in sectors where cash is a major component like real estate. But like the objective, greater proportion of the economy should shift from black to white. It is not going to be easy to convert black money in form of cash to white via real estate or gold. These high value notes of Rs.500 and Rs. 1000 will be worthless pieces of paper after December 30, 2016.


Cash notes of Rs.500 and Rs. 1000 are new trash and India is expected rise to new heights in its wake.


Share Button

Subscribe IAS100 Newsletter

  UPSC Daily Dose : Current Affairs
Government gave a go ahead to TN NEET ordinance
India keen on expansion of oil import sources
Economic Survey lowers growth forecast
Rationalising Subsidy, Centres expenditure framework
Upper house passed Banking Regulation (Amendment)Bill
Why AIJS is not a good idea
The deaths which shook Gorakhpur
ISRO set to launch Earth Observation Satellite
Hue and Cry around Article 35 A
Swachh Gramin Survey 2017, Bharat moving towards ODF
National Food Security Act lacks governance
States unwilling for stricter Anti-Racism Law
Government skipped procedure on Cattle trade ban
Clouds hover over Finance Act
Make in India needs Effective Implementation
Home | About Us | Contact Us | Terms & Conditions | Refund Policy | Delivery Policy | Disclaimer | Copyright Policy | Privacy policy |
Partner sites :  chronicleias.com | chronicleindia.in

Copyright © 2018 Cgmantra Digital Media Pvt. Ltd.


Please Give Your Valuable FEEDBACK To Serve You Better.

Please enter security code, displayed below !
(Note: code should be entered in small letters)