This video tells about the merits & demerits of Demonetization. Very few of us may know that Demonetization process has taken place two times in India earlier to the current one.
First Demonetization was taken place in 1946 by then Government of India. RBI offered clients to exchange their old notes of the denomination of Rs.100 with the new one.
Second Demonetization took place in 1978 by then Janta party Coalition government. Notes having the denomination of Rs. 1,000, Rs. 5,000 and Rs 10000 were withdrawn from the circulation. Three days were given for exchange. Later 5 extra days were given for exchange. This Demonetization process was implemented in the better way than the first one.
As we all know the third demonetization took place on midnight of 8th November 2016 by current BJP government led by our prime minister Sh. Narendra Modi. All notes of the denomination of Rs. 500 and Rs. 1000 were demonetized. The total currency of these denominations is expected to tune of Rs. 14.50 lakh crores to 15.00 lakh crores.
These measures are proving successful to the large extent in pressurising businessmen/others having black money to avoid these practices in the future. But poor ones, which look happy in initial stage suffered the most when they have to stand in the long queues in front of banks & ATMs and returned back home without money due to the shortage of funds in banks and ATMs. The death toll reached near to 100. Workers also suffered because of lack of funds with their employers. GDP declined sharply. Most of the persons having black money managed to adjust their money in one way or another.
These all points are beautifully & precisely visualised in the attached video. The duration of the video is 7 minutes only. Slides are in English and explanation is done in the Hindi language by audio.
Watch the video and give your feedback.
CMA Sawinder Singh Chug