By Manraj Singh, Class 10 Heritage School Jammu
It was November 8 during the night time, me and my parents were at a marriage. Everyone there was very happy suddenly a message came in everyone's mobile and all the gossips and talks at the marriage started to happen on the same topic i.e नोट बंद्घी or demonetization. Everyone there had a different opinion about this, some were happy with this decision of the PM while some were unhappy. There were people who were very happy that with this corruption will finally end in our country. People who had black money hidden somewhere in there house or to some other place were very frightened with this. They were worried about the raids by Income Tax and the CBI. At that moment I was not even able to understand what everyone is talking about. I heard someone talking that this act of demonetization is a nice step to end up corruption. Then I opened google and searched the meaning of the word demonetization and I came to know that “Demonetization is the act of stripping a currency unit of its status as legal tender. It occurs whenever there is a change of national currency.” In India all ₹500/- and ₹1000/- were no more a part of our currency instead new notes were going to be introduced. All this was planned at such a time when people cannot do anything to hide there black money or to change there ₹500/- and ₹1000/- notes as the banks were closed and also the banks were to be closed on the next day too i.e November 9. When we were going back to home from the place of marriage, we saw number of cars queued up for filling up of their fuel tanks and also to give away there ₹500/- and ₹1000/- notes. Media was also there to know the views of the people on demonetization.
Next day everyone was worried that how are they going to change the left over notes of ₹500/- and ₹1000/- notes and get the new notes. On the next day all the government departments such as the Income Tax and the CBI started raids on the people they were having a doubt. A lot of black money was seized and many people were behind the bars. The day banks opened there long lines, people were standing in lines to exchange there currency. There was a shortage of new currency notes and everyone was not getting the desired amount. If one wanted money he/she could get only ₹4000/- from ATM's which created a chaos in the country. Many people went to the Supreme Court to file a case, but the court's decision was in favour of the Government. The date of exchanging the notes was 31st December. For many days there were long lines in front of the banks and all bank employees were getting really tired because of there hectic schedule. Raids were being conducted daily and a lot of black money was seized from different parts of India.
It took a little time but everything became like it was before and corruption from India was alleged to have been removed to a great extent. However, it was reported that some people indulged in corruption in new currency.
The most interesting thing regarding the demonetization was that people had devised various unique methods for transforming their black money in to white one. Some of these methods were as follows -
- Depositing money in the accounts of their poor relatives or friends.
- Asking their employees to stand in the long queues in front of Banks and ATMs for getting money exchanged.
- Paying a few months salaries to employees in advance.
- Converting black money in to gold.
THE IMPACTS OF DEMONETIZATION
The impact shall be that people will have lower expenditure power. With that they will not be able to purchase luxurious things.
The things may be cheaper. Indian Currency may get respect at the international market. There may be a great check on the terror-related funding and therefore on terrorist activities. Corruption shall be down to a great extent as people will stop the tendency of accumulating money using wrong means. This big move will certainly bridge the gap between the haves and the have-nots i.e the rich and the poor. However, it was claimed by government that there may be some difficulties for a couple of months. But this inconvenience shall be temporary and for short-term.
Government till date has not disclosed how much old currency has come back, what was the effect on black money.
There are many instances of fake currency in spite of new currency notes of Rs. 2000 and Rs. 500.
Terrorist activities have also been reported after demonetization.
So the exact analysis of impact of demonetization is still going on.