99% of Money found its way back to Bank. is this okey?

Demonetization is really a big failure or a major success?

As per RBI statement, 99% of high-denomination value notes (₹1000 & ₹500) have found its way back to the banking system. Now you may think that the total procedure has resulted in a great failure. Right?

Here are few things to know.

The intention of demonetization was not to cancel out money from the economy if a major part of the money couldn’t get its way back,  the economy could have faced a great damage and disturb due to lack of money.

The main objective of demonetization was to track all the money. As all the money found its way back to the bank, the government has information of one’s money.

Some Positive Points of demonetization are described below.

1.      What Happened to self-declared Black Money: Government has charged 50% tax on self-disclosed money (earlier which was black money) and 25% of the money was kept with the government for 4 years without any interest, only the rest 25% of the money was returned to the owner.

2.      Way out of fake currency: counterfeit money is considered to be the cancer of any economy, due to some dishonest and corrupt people our country was grabbed by the fake currency which resulted in de-growth of our economy. The step of voiding the old 500 and 1000 currencies completely removed the fake currency and for high security of the new currency, it is also very hard to print new fake currencies. so, there is less fake currency. 

3.      Increase in the Number of Tax Payers: The official number of Income Tax Payers showed that 5,60,000 new tax payers have filed returns this year compared to only 2,20,000 tax payers last year.

4.      The growth of Economy:  After demonetization, a very larger amount of black money has stepped into the white economy which helped the economy to boost. All money has come under the observation of government and it is easy to trace any transaction and they can be taxed easily too.

5.      A step towards digitization: The non-availability of currency somewhat forced the common people towards the online mode of transaction. And it is seen that now young India is preferring digital mode to cash.

6.      To stop terror funding: terrorists are mostly funded by cash and the fund used to be derived from illegal activity and fake currencies. So now there is less scope to fund terror.

At the last but not the least I would like to state as per light of above mentioned facts that demonetization is no doubt a considerable and important step which is appreciated by several international organizations and individuals including The World Bank, IMF, and ADB etc. this initiative has ignited a light of positivity in the heart of citizen in particular among the young stars which will create a positive neuro path and will result in a rapid circle of growth. The whole country will flow by the stream of prosperity, wealth, and peace towards a bright and shining future.


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