Project on Demonitisation - Economics Class 12

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its going good

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Project file on economy behinds demonitazation

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Demonetization - Economics Class 12

Demonetization refers to the act of stripping a currency unit of its status as legal tender. In 2016, the Government of India announced the demonetization of all ₹500 and ₹1,000 banknotes. This decision was taken to curb black money, reduce corruption and promote digital transactions. Here are some of the key aspects of demonetization:

Impact on the Indian Economy

Short-term disruption: The sudden withdrawal of high-value notes caused a short-term disruption in the economy, affecting small businesses, daily wage earners and farmers who depended on cash transactions.

Shift to digital transactions: The government's push towards digital transactions led to a significant increase in the usage of digital payment methods such as mobile wallets, UPI, and debit/credit cards.

Reduction in black money: Demonetization aimed to reduce the circulation of black money in the economy by making it difficult for people to hoard unaccounted cash.

Impact on GDP: The impact of demonetization on GDP was mixed. While some sectors such as real estate and construction saw a slowdown, others such as manufacturing and services showed resilience. Overall, the impact on GDP was estimated to be around 1-2%.

Effect on Banking Sector

Deposit mobilization: Demonetization led to a surge in bank deposits as people rushed to deposit their old currency notes. This helped banks to mobilize a significant amount of low-cost funds, which they could use for lending purposes.

Increased financial inclusion: The push towards digital transactions and the opening of Jan Dhan accounts helped to increase financial inclusion in the country.

Challenges in currency management: Demonetization posed significant challenges to banks in terms of currency management, cash logistics, and customer service.

Impact on the Common Man

Short-term inconvenience: The sudden withdrawal of high-value notes caused inconvenience to the common man, who had to stand in long queues to exchange their old notes for new ones.

Increased awareness about digital payments: Demonetization led to an increase in the awareness and usage of digital payment methods such as mobile wallets, UPI, and debit/credit cards.

Reduction in corruption: Demonetization aimed to reduce corruption by making it difficult for people to hoard unaccounted cash. However, its impact on corruption remains debatable.

Conclusion

Demonetization was a bold move by the government to curb black money, reduce corruption and promote digital transactions. While it caused short-term disruption to the economy, its impact on the long-term growth and development of the country remains to be seen.

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Project file on economy behinds demonitazation

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what help you  want in that?

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i also

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Withdrawal of status of 'legal tender' to the currency In circulation

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Best attempt .

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