a simple ppt including meaning,history,pros & cons etc.

2. INTRODUCTION
-DEMONETIZATION

3. MEANING…?

4. BACKGROUND
 Demonetization has been embraced in the past by several other countries. They include:
 Some of the countries have met the purpose and whereas some others have failed.

5. Demonetization in India: History
1946 : 1000 and 10,000 rupee notes were recalled.
1978 : 1000, 5000 and 10,000 rupee notes were demonetized.
Difference in 2016 with that of
earlier one’s is obviously the size.

6. Demonetization 2016
 Announcement on 8th November 2016 by
Hon. Prime Minister Narendra Modi.
 “Surgical strike” against black money- PM
 Rs.500 and Rs.1000 notes became invalid.
 Issuance of new Rs.500 and Rs.2000 notes.
 Up to 97% of the notes have been deposited
into banks (Rs.14.97 trillion out of Rs.15.4
trillion) till December 30th.

8. Purpose / Need …?
 To tackle black money in the economy.
 To eliminate fake currency and dodgy funds which have been used by terror
groups to fund terrorism in India.
 To curb the use of such funds for subversive activities such as smuggling of
arms, drugs and other contrabands to India.
 Cashless economy argument.

9. Impacts…
 Positive Impacts:
 Badly hit Maoists and Naxalits.
 Setback to Hawala operations.
 Track of unaccounted cash.
 Increased tax revenue for Government.
 Reduced loan rates.
 Increased bank deposits (helps in cashless economy).

10. Impacts…
 Negative Impacts:
 Cash shortage at banks.
 Chaos, conflicts and reported several deaths.
 Strikes.
 Stock market crash.
 Adverse effect on agriculture and transportation.
 Business falls by 30%-40%.
 Expects a fall in GDP by almost 2% (i.e; from 7.6% to 6%).

12. PROCESS…

13. Reactions of famous personalities…
 SUPPORT
1.“Would help curbing black money”- Arundhati Bhattacharya(Chairperson SBI), Chanda Kochhar(MD of ICICI Bank).
2. N.R Narayana Murthy(Infosys), Chief Ministers of various states, The President of India Pranab Mukherjee, etc.
3. International Monetary Fund(IMF), Prime Ministers, Presidents and Vice-Presidents of various other countries.
4. Many international newspapers, articles, journals supported the move by calling it as a “bold decision”.

14.  CRITICISM
1.“despotic action” (Amartya Sen, Indian Economist).
2.”organized loot and legalised plunder of the common people, monumental mismanagement”
(Dr.Manmohan Singh).
3.“major mistake and damage is likely to be much greater than any possible benefits”(Kaushik Basu,
World Bank).
4.International newspapers and articles including NYT and HBR said that it was “atrociously planned” and
called it “a case study in poor policy and even poorer execution”.

15. Conclusion…
So far, it can be said that this is a historical step and should
be supported by all. One should look at the bigger picture
which will be definitely fetch results in the long term. May
this decision make a massive change in the development of
our economy. Hoping for a better tomorrow…
“Proud to be an INDIAN –Jaihind”

16. THANK YOU…..!!!!