Frankfinn Institute Ahmedabad English Enhancer Submission PPT 2019 Made by ;- Dheeraj pandey

1. DEMONETIZATION

2. 1) What is Demonetization and how
demonetization impacted the Indian
economy?
2)What are positive and negative
effects of demonetization?
3)What were the after effects of
demonetization?
4) Is 100 an important number?

3. DEMONETIZATION
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: The current form or forms of
money is pulled from circulation and retired, often to be
replaced with new notes or coins.
(8TH Nov 2016-30 Dec 2016)

4. Demonetization Effects on
Economy:
It created too
such economic disruption, particularly
for the rural poor who operate only in
the cash economy, and not enough
gain. However, demonetization needs
to be seen in the context of a wider
program of reforms in India which are
significant in terms of the
nation's economy, society and real
estate sector.

5. POSITIVE EFFECTS OF
DEMONETIZATION
• Easy for government to track all the transactions
which takes place in the economy.
• Cashless society means, elimination of
intermediaries to some extent. So both
producers and consumers will get fair price.
• A jolt to people holding unaccounted money.
Now they have to pay taxes for such money to
make it white and also face legal repercussions
in some cases
NEGATIVE EFFECTS OF
DEMONETIZATION
• Poor preparation by the government for the
biggest currency clean up of India ever.
• Some district cooperative banks are not
accepting the demonetized currency. Also they
are not allowing people to withdraw their legal
limit
• Government cannot impose any restrictions on
the amount of money a person can withdraw
from his account as per section 26(2) of the RBI
ACT1934. so it's illegal

6. Impact of Demonetization on
Terrorism
• The demonetization of bank notes of Rs.500 and Rs.1000 denomination
resulted in significant positive impact on most theatres of violence in the
country.
• Since illegally held cash forms the major chunk of terrorist funding, after
the demonetization, most of the cash held with the terrorists turned
worthless. Demonetization also led to instant extinguishment of Pak-
printed high quality fake Indian currency notes. It also adversely affected
the (hawala) operators.

7. After Effects Of Demonetization:
1) A year after the country was wiped out
of old currency, the effects of Narendra
Modi's demonetization can still be felt
in the economy. Demonetization began
as a way to curb the black money from
our economy was later addressed as a
means of making India cashless and
giving digital India a boost.
2) Because of lack of digital
establishments, vendors have
found it easy to accept money
through digital wallets. It is only
the ease of paying money via a
simple phone number that has
enabled this convenience.

8. What is the impact of
demonetization in rural world
of India?
1) Cash and co operative banks are the
back bone of the rural economy. Debit
cards, credit cards, net banking and
online transactions that are popular in
Urban India, are non existent in the
rural part.
2) Rural Indians couldn't trade with the
old currency notes, people stopped
hiring daily wage labourers,as they
were unable to pay them. Purchasing
power of people went down . Daily
wage earners didn't have a chance to
eat twice daily. The economic activities
of middle lower class people almost
stopped and the best part is they were
innocent,they didn't have black money
. but they had suffering.

9. India's Demonetization Kills
100 People Apparently - This
Is Not An Important Number
1) Government refuses to pay tributes
to people killed due to
demonetization.
2) S K Sheriff 46-year-old deputy
manager of SBI bank collapsed while
working and died in the hospital. He
was working 14 hours every day.

10. What do you think?
Media 1
• India's Demonetization Kills 100
People Apparently - This Is Not An
Important Number.
• No omeletts is ever made without
breaking a few eggs. Where is the
Black Money?
Media 2
• There were news reports of some
people dying in front of ATMs while
standing in long queues in front of
banks and ATMs. The reason was
poor crowd management, bystander
apathy and lack of quick access to
emergency health services.