Essay on Demonetisation Boon Or Bane

Students are often asked to write an essay on Demonetisation Boon Or Bane in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Demonetisation Boon Or Bane

Introduction

Demonetisation is a process where a currency unit is no longer considered as legal money. It’s like taking old notes out of circulation and replacing them with new ones. In 2016, the Indian government took this step to fight corruption and black money.

Positive Effects of Demonetisation

Demonetisation can help a country in many ways. It can cut down the amount of black money. It can also stop illegal activities because it’s harder to hide large amounts of new notes. Plus, it encourages people to use digital payments which can be easily tracked.

Negative Effects of Demonetisation

On the other side, demonetisation can cause problems. People may face difficulties because of a sudden change in currency. It can also slow down the economy because people spend less when they don’t have enough cash. Small businesses can suffer the most.

Conclusion

So, is demonetisation a boon or a bane? It can be both. It has potential benefits like reducing corruption and promoting digital transactions. But it can also cause economic slowdown and trouble for common people. It’s important to plan and implement it carefully.

250 Words Essay on Demonetisation Boon Or Bane

Introduction

Demonetisation is a process in which a currency unit is no longer accepted as a form of legal tender. This action is usually taken by a country’s government to fight against black money, corruption, and illegal activities. In India, demonetisation was implemented on November 8, 2016, when the government declared the existing INR 500 and INR 1000 notes as invalid.

Benefits of Demonetisation

Demonetisation has many benefits. It can help reduce the amount of black money in the economy. Black money is the money earned through illegal activities and not declared for tax purposes. By making the old currency notes invalid, people with black money are forced to deposit it in banks, which can be tracked and taxed.

Demonetisation also helps in fighting corruption. It makes it difficult for people to store large amounts of cash, which is often used for bribes. It also promotes digital transactions, which are easier to track and more transparent.

Challenges of Demonetisation

On the other hand, demonetisation can cause a lot of problems. It can lead to cash shortages and disrupt the economy, as people have to exchange their old notes for new ones. This can be especially hard for poor people, who may not have easy access to banks.

Demonetisation can also lead to job losses in sectors that rely heavily on cash, like small businesses and agriculture. It can also cause a drop in economic activity, as people spend less due to the lack of cash.

Conclusion

In conclusion, demonetisation has both pros and cons. It can help fight against black money and corruption but can also cause economic disruption and hardship for people. Therefore, it’s important to carefully consider the potential impacts before implementing such a policy.

500 Words Essay on Demonetisation Boon Or Bane

Introduction

Demonetisation is a process in which a currency unit is no longer considered as a legal mode of payment. The government of India introduced demonetisation on November 8, 2016, by discontinuing the use of 500 and 1000 rupee notes. This step was taken to fight against black money, corruption, and illegal activities. Now, let’s discuss if demonetisation was a boon or a bane.

The Good Side of Demonetisation

Firstly, demonetisation helped in fighting black money. Many people who had stashed away unaccounted money found it hard to exchange their old notes. This led to a reduction in the amount of black money in the economy.

Secondly, demonetisation promoted digital transactions. With less cash in hand, people started using digital means of payment like online banking, mobile wallets, and credit cards. This not only made transactions easier and faster but also helped in tracking the flow of money.

Thirdly, demonetisation led to increased tax collections. As people deposited their old notes in banks, the government could track income that was previously hidden. This resulted in higher tax collections and increased revenue for the government.

The Downside of Demonetisation

On the other hand, demonetisation also had some negative effects. The sudden withdrawal of notes created a cash crunch. People had to stand in long queues at banks and ATMs to exchange their old notes. This caused a lot of inconvenience and hardship, especially to those in rural areas where banking facilities are limited.

Moreover, demonetisation impacted small businesses and the informal sector. These sectors largely operate on cash transactions. The sudden shortage of cash hit their operations and led to job losses.

Finally, demonetisation also slowed down the economy. With less cash in hand, people cut down on spending. This resulted in lower demand for goods and services, affecting industries and leading to a slowdown in economic growth.

Conclusion

In conclusion, demonetisation had both positive and negative impacts. It was successful in reducing black money, promoting digital transactions, and increasing tax collections. But it also caused inconvenience to people, affected small businesses, and slowed down the economy. The overall impact of demonetisation can be seen as a mix of both boon and bane. Therefore, it’s important for the government to carefully consider the pros and cons before implementing such a drastic measure in the future.

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