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  As we all know currency is withdrawn while on the implementation of demonetisation.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.
in Business+Finance by 2 10 35

9 Answers

+2 votes
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.
by 4 7 22
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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.
nice  answer
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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.

by 4
0 votes
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.
by 4 7 19
0 votes

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.
by 4 8 33
edited by
0 votes
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.
by 3 4 17
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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.
by 10 14 75
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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.
by 2 3 8
0 votes
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 
by 5
0 votes
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. 
ago by 1 6

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