Thursday, 24 November 2016

Demonetisation 2016

The country has been under a lot of excitement the last few weeks following the demonetisation wave. The country has seen similar currency devaluation in the ninteen forties and under the Morarji Desai government in 1978. Following the cash crunch there has been widespread panic and unrest. Queues in ATMs for basic survival. The poor are mostly affected specially, the people in the rural areas. The industries are running into trouble with low cash in flow. As in case of any emergency rapes, suicides are creating widespread panic. The demonetisation which has been to curb the flow of black money and corruption has been quite a success so far with banks receiving more than six lakh crore as deposits. Due to reduced cash flow in the country the country's GDP might fall over the current and next financial year. Since most part of real estate transactions takes place with unaccounted black money, following demonetisation real estate prices may drop significantly. People may invest more on gold as a wiser investment. Terrorists will also find it hard to crack operations with the new currency notes. The Demonetisation of 2016 has been in some ways easier than the previous years because of digital transactions. As Bill gates said demonetisation will be a big step to a more Digital India.

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