menu search
brightness_auto
Ask or Answer anything Anonymously! No sign-up is needed!
more_vert
Nowadays we are hearing a lot about demonetisation. India and Sweden are the first to promote demonetisation.  As we all know currency is withdrawn while on the implementation of demonetisation.
But my question is other than that what is the real advantages and aim of demonetisation? I need an expert answer.
more_vert
Demonetisation is a policy of a government or central bank to withdraw a particular type of currency from circulation, making it invalid or worthless. It is usually done to combat illegal activities such as money laundering, corruption, tax evasion and counterfeiting. The aim is to reduce the amount of cash in circulation, encouraging people to use other forms of payment such as electronic banking, debit cards and credit cards. It can also be used to combat inflation and stimulate economic growth. Ultimately, demonetisation is a measure to promote a healthy and transparent financial system, which will benefit the entire economy.

25 Answers

more_vert
 
done_all
Best answer
Demonetisation is a process by which a country discontinue it's physical currency partially or fully to promote digital ways of transactions.
People are forced to make transactions online by digital payment portals or mobile apps while demonetisation is introduced. To achieve this target a nation should have a strong internet backbone.
Yes there are some advantages of demonetisation. The ease of transactions without carrying money in your pocket is an advantage. Anti social activities using money can be controlled very effectively. Bribing will also comes to an end.
But a government may be looking for increase their income through taxes as all transactions are recorded through bank statements and tax IDs.
There are many complex situations when trying to impose demonetisation in countries like India, where internet is not available in rural areas of northern states. Moreover a cheap and reliable internet service should be there to make it possible.
Even though there are advantages demonetisation became a failure in India as the implementation was such kind of a stupid action by the government. Moreover government should bring down the tax rates in order to avoid burden to the agricultural sector and flourishing small scale sectors.
Every laws should be for the sake of the citizens in that country.
thumb_up_off_alt 3 like thumb_down_off_alt 0 dislike
more_vert
One cannot say that its a failure in India. Its need more time to move from physical currency to digital. Its not easy to move fast, as far as India like big country with huge population. My opinion is its a good step to the future.
more_vert
nice  answer
more_vert

Demonetisation means that the government has to opt for foreign sources to secure funding and in the process increase the national debt. It can reduce inflation, improve the economy, and result in financial behavior change among citizens.

thumb_up_off_alt 1 like thumb_down_off_alt 0 dislike
more_vert
It is an act of stripping the legal tender status of currency units. It happens whenever there is a change of any national currency. It involves the withdrawal of the current forms of money from being circulated usually replaced with new niten or coins.

Advantages-----

1- Getting fake currency out of circulation.

2- It helps in controlling inflation.

3- It helps in tax collection.

4- It helps in moving towards the digital currency.

5- It improved deposits and savings in financial institutions.

6- It helps in stopping fraudsters.

7- It helps in reducing illegal activities of currency.

8- It helps in growth of country's GDP.

9- Introduction of new bank note designs.

10- It helps in measuring good government practices.
thumb_up_off_alt 1 like thumb_down_off_alt 0 dislike
more_vert

Demonetization is the procces in which a country discontinue currency currency partially or fully to promote digital ways of transactions.

There are some advantages of demonetisation. The ease of transactions without carrying money in your pocket is an advantage. Anti social activities using money can be controlled very effectively. Bribing will also comes to an end.
thumb_up_off_alt 1 like thumb_down_off_alt 0 dislike
more_vert
Demonetization is the act of stripping a currency unit of its status as legal tender it occurs whenever there is change of a nation currency. The current form or forms of money is pulled from circulation and retired, ofted to be replaced with new notes or coin.
thumb_up_off_alt 1 like thumb_down_off_alt 0 dislike
more_vert
Demonetisation is being removed when the national currency had changed. It needs to be done because the value will be changed. Different countries do this to make the currency cope up with the changes and they need to change them to new notes.
thumb_up_off_alt 1 like thumb_down_off_alt 0 dislike
more_vert
I don't know demonetization but I know that 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.
thumb_up_off_alt 1 like thumb_down_off_alt 0 dislike
more_vert
Demonetization is a process in which current currency is replaced by the another currency.But the name of currency remains same.from demonetization we can tackle black money 
thumb_up_off_alt 1 like thumb_down_off_alt 0 dislike
more_vert
Demonetisation is a situation where the Reserve Bank of India which is the Central Bank of the country withdraws the old currency notes of certain denomination as an official mode of payment or removes a currency's legal tender status. It means the old notes are retired exchanged with new ones. 
thumb_up_off_alt 1 like thumb_down_off_alt 0 dislike
more_vert
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. A drastic intervention into the economy that involves removing the legal tender status of a currency. It can cause chaos or a serious downturn in an economy it it goes wrong.
thumb_up_off_alt 0 like thumb_down_off_alt 0 dislike
more_vert
Demonetization is the act of stripping a currency unit of it’s status as legal tender. It occurs whenever there’s a change in national currency.
thumb_up_off_alt 0 like thumb_down_off_alt 0 dislike
more_vert
Demonetisation is referred to as the process of stripping a currency unit of its status to be used as a legal tender. In simple words, demonetisation is the process by which the demonetised notes cease to be accepted as legal currency for any kind of transaction.
thumb_up_off_alt 0 like thumb_down_off_alt 0 dislike
more_vert
Demonetization is discontinuing use of certain currency and replacing it with new one, often done to combat illegal activities and move towards cashless society.
thumb_up_off_alt 0 like thumb_down_off_alt 0 dislike
more_vert
Demonetisation is the process of ceasing the use of certain denominations of currency as legal tender. This is usually done to combat inflation, counterfeiting and other forms of financial crime. The main objective of demonetisation is to reduce the circulation of fake and fake currency, which can be used to finance terrorism and other illegal activities. It also helps bring unaccounted money into the formal banking system and reduce the volume of cash in circulation, thereby reducing the costs associated with printing, storing and transporting large amounts of cash. Demonetisation also helps fight corruption and black money and prevents people from hoarding large amounts of cash that cannot be accounted for. Additionally, demonetisation can help reduce transaction costs and increase the efficiency of the financial system by encouraging people to use digital payments instead of cash.
thumb_up_off_alt 0 like thumb_down_off_alt 0 dislike
more_vert
Demonetization refers to the act of stripping a currency unit of its status as legal tender. This typically occurs when a government wants to replace the current currency in circulation with a new one, or when it wants to reduce the use of paper money for other reasons. In 2016, the Indian government demonetized its largest banknotes in an effort to reduce corruption, counterfeiting, and tax evasion.
thumb_up_off_alt 0 like thumb_down_off_alt 0 dislike
more_vert
Demonetisation is a term used in India and Sweden to describe the government’s decision to promote the use of silver and gold coins as instead of through the use of paper money. The coins are no longer GrameenCoin, but instead are produced by the Birla Mint in-house at around Rs. 1,000 each. This was done in order to reduce the access to financial resources by the poor and recognised, as well as to cut into the ability of the NADRA-controlled coins to be used in financial transactions.
thumb_up_off_alt 0 like thumb_down_off_alt 0 dislike
more_vert
Demonetization is the act of stripping a currency units of it's status as legal tender.it occurs whenever there is a chance in national currency. The currency form of money is pulled from circulation .
thumb_up_off_alt 0 like thumb_down_off_alt 0 dislike
more_vert
Demonetisation is the process of stripping a currency unit of its status as legal tender, typically as a means of curbing illegal activities such as tax evasion, corruption, and counterfeiting. This involves the government withdrawing the existing currency notes or coins from circulation and replacing them with new ones. Demonetisation can have significant economic and social impacts, including on businesses and individuals who rely on cash transactions.
thumb_up_off_alt 0 like thumb_down_off_alt 0 dislike
more_vert
Demonetisation is a government action that involves stripping a currency unit of its status as legal tender, typically to combat corruption or inflation.
thumb_up_off_alt 0 like thumb_down_off_alt 0 dislike
more_vert
Demonetization of the currency is expected to lead to more consumer spending as holders of money look to put it back into circulation. Increased consumer spending would likely result in higher inflation levels in the country.
thumb_up_off_alt 0 like thumb_down_off_alt 0 dislike

No related questions found

Whenever you have a question in your mind, just drop it on Answeree. Help our community grow.
...