Demonetization is the act of stripping a currency unit of its status as legal tender. It occurs whenever there is a change in national currency. It is current forms of money that is pulled from circulation and it is often replaced with new notes or coins. Sometimes a country completely replaces the old currency with new one.
The dictionary meaning of demonetization is “to deprive (a metal) of its capacity as a monetary standard” or to withdraw from use as currency”. Finance minister Arun Jaitely said that demonetization of Rs. 500 and Rs. 1000 notes will expand the size of economy, increase revenue base and make the system cleaner while preserving its credibility.
Demonetization is the act of changing the existing currency in another form.…show more content… • A considerable hue and cry from the public for getting their money exchanged.
• Little violation at some places by public.
• A few deaths were accounted resulted from stress of not getting money, ultimately due to demonetization of currency.
• Bank employees have to work for longer hours.
• People are unable to withdraw huge amount for the big occasions at their home.
• Swipe machines found to be not working properly at many places whatever may be the issue (i.e. personally observed in trade fair)
• Illiterate or less educated people are not so much aware about the cashless transactions.
• Lack of ATM’s especially in rural areas creates big problem.
• In present time, there are still villages/areas which are unbanked even today resulting their routine work disturbed as they have to go to nearby villages or cities to get exchange their notes.
• Most of the cashless transactions are connected through internet which demand proper network that is still inadequate in some parts of India.
• Many illegal agents (Dalals) are emerged who are indulged in exchange of notes with a huge commission resulting in moral