The Lasting Impact of Demonetisation

Demonetisation indicates eliminating the tender rights of unspecified denomination of currency. Units of cash have deprived the status of tender. Demonetisation is an act of removing the tender rights of any currency.

The units of currency won't be considered as legitimate currency. Demonetisation is that the process of ceasing a unit of cash of its status as tender. Demonetisation may be a necessary condition for changing the old currency with the new units of cash. It is going to involve the introduction of the latest notes or coins of the same denomination or a totally new denomination. Demonetisation was a bold and revolutionary action taken by the govt of India to curb black money and one which will have a deep impact on the parallel economy within the country.

Pockets and persons with black money are often identified with this movie. a couple of businesses like property dealers, jewelers, foreign currency dealers, private money lenders generally hold huge amounts of unaccounted money in sort of currency notes. Such unaccounted money had created a parallel economy within the country. Such illegal money has reached the bank accounts through direct or indirect channels.

Fake Currency Notes are wasted by the demonetization. Withdrawing the very best currency notes out of the economy will have a significant impact on the fake currency syndicates, thus putting an end to the fear funding in Jammu and Kashmir, Naxalite operated states, and North-eastern states. The fake currency with racketeers are left vainly, and new currency notes with high security; making a counterfeit impossible. Demonetisation was a surgical attack on a fake currency circulating within the economy. Demonetisation has converted those fake currency notes into mere pieces of paper.

By: Avinash Sinha 

School Name: Birla School, Pilani