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Demonetization happended in November, 2016. Know all about demonetization in india and their effect/impact.

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demonetization | demonetization in india pros and cons | demonetization in india impact | demonetization in india effect | about demonetization | demonetization in india pdf

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Demonetization in India PowerPoint Presentation

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Description : Demonetization happended in November, 2016. Know all about demonetization in india and their effect/... Read More

Tags : demonetization | demonetization in india pros and cons | demonetization in india impact | demonetization in india effect | about demonetization | demonetization in india pdf

Published on : Jan 18, 2019
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Demonetization in India
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Slide 0 - Demonetization in INDIA
Slide 1 - Demonetization in India Prime Minister Narendra Modi’s sudden announcement to demonetise Rs 500 and Rs 1,000 notes in circulation, though welcomed by people across the country, has left many in the lurch. Despite facing the opposition’s ire, the Prime Minister, in an impassioned plea on Sunday, urged the people to support the move while asking them to bear the “pain for 50 days” to help him deliver the “India of your dreams”. He also warned that several other steps were in the offing to curb the menace of corruption.
Slide 2 - But what is demonetisation? Demonetisation is a radical monetary step in which a currency unit’s status as a legal tender is declared invalid. This is usually done whenever there is a change of national currency, replacing the old unit with a new one. Such a step, for example, was taken when the European Monetary Union nations decided to adopt Euro as their currency. However, the old currencies were allowed to convert into Euros for a period of time in order to ensure a smooth transition through demonetisation. Zimbabwe, Fiji, Singapore and Philippines were other countries to have opted for currency demonetisation.
Slide 3 - Demonetisation in India by PM Narendra Modi On November 8 evening, Prime Minister Modi, in his televised address to the nation, made Rs 500 and Rs 1000 notes invalid, saying that it was aimed at curbing the “disease” of corruption and black money which have taken deep root. People holding notes of Rs 500 and Rs 1,000 can deposit the same in their bank and post office accounts from November 10 till December 30. All notes in lower denomination of Rs 100, Rs 50, Rs 20, Rs 10, Rs 5, Rs 2 and Re 1 and all coins continued to be valid, and new notes of Rs 2,000 and Rs 500 were introduced. There was no change in any other form of currency exchange be it cheque, DD, payment via credit or debit cards etc.
Slide 4 - Demonetization - Broad Learning for Childern In the wake of the recent demonetization drive by the government, Indian parents have reported guiltily breaking open their children’s piggy banks for small change to tide over the cash crunch. After the initial shock of seeing their piggy banks broken, children have been only too happy to oblige, given the promise that the money will be replaced with double the amount taken. As the country slowly comes to grips with the impact of this move, it’s a great time to impart some life lessons to impressionable young minds.
Slide 5 - Demonetization - Broad Learning for Childern WHY SAVING AND CONSCIOUS LIVING IS IMPORTANT Most children treat their parents as an ATM and think that pocket-money is only for spending and not saving. While small children want every toy they see, teenager’s demands for gadgets and expensive products is never-ending. This is why teaching your child to save for a rainy day is essential. Help them make conscious choices about how they spend money; is what they want value for money or are there better alternatives available?
Slide 6 - Demonetization – Broad Learning for Childern THE IMPORTANCE OF A CASHLESS SOCIETY This is a good time to teach children the basics of banking, financial management and how daily living can be managed without cash. Talk to them about the pros and cons of using credit cards, the difference between debit and credit cards, net banking, digital wallets, how you can pay bills and order groceries online. Stress also on the precautions to be taken with each medium, like keeping passwords and pins safe and protection from digital fraud.
Slide 7 - Demonetization – Broad Learning for Childern FAMILIARIZE THEM WITH THE IMPORTANCE OF PAYING TAXES Per a report released by the income tax department, only 1% of a total population of 123 crore Indians paid tax for the assessment year 2012-2013. Imagine if all Indians paid their taxes honestly and there was no corruption, how much money would be available to improve the roads, bridges, airports and other development work of the country?
Slide 8 - Demonetization – Broad Learning for Childern EVERYONE IS EQUAL IN THE EYES OF THE LAW The long queues for cash outside Banks and ATMs have blurred the class divide. Rich or poor, everyone is affected. The limits for exchange of old notes with new, deposits of old notes and withdrawal of money is the same for everyone. Anyone breaking this rule will be fined and will have to give the government tax on earnings they did not declare earlier.
Slide 9 - Demonetization – Broad Learning for Childern BLACK MONEY VERSUS WHITE MONEY When people pay tax to the government on money they earn, the money is called white money. When people do not tell the government about how much they are earning, don’t pay tax and hoard cash, it is called black money. Even fake notes made to look like real money are called black or counterfeit money. The government introduced de-monetization to remove black money. Though we can’t go to the border to protect our country like our soldiers, we can do our bit by fighting the war against black money.
Slide 10 - 1978 Demonetisation The government’s move to demonetise, even then, was to tackle the issue of black money economy, which was quite substantial at that point of time. In January 1978, the Indian government demonetised Rs 1,000, Rs 5,000 and Rs 10,000 notes  which was quite substantial at that point of time. The move was enacted under the High Denomination Bank Note (Demonetisation) Act, 1978. Under the law all “high denomination bank notes” ceased to be legal tender after January 16, 1978. People who possessed these notes were given till January 24 the same year - a week’s time - to exchange any high denomination bank notes. The main difference between then and now is that currency of higher denomination was barely in circulation, unlike the Rs 500 and Rs 1000 note today.
Slide 11 - Demonetisation is not sufficient In 1978, demonetisation was carried out in India but that policy did not end black money. In fact, black money possibly increased over time, thereafter. So this time again the demonetisation announced on 8 November 2016 may not end or even significantly dent black money, unless there are structural reforms in the rest of the economy on a sustained basis to reduce black money. There is a need for stricter collection of taxes and further simplification of tax laws, and reasonable regulations in areas such as real estate, foreign trade, remittances, political donations, mining and gold, so that incentives to deal in black money in the first place are minimised.
Slide 12 - How Demonetization of India is Different In India’s case, the move has been taken to curb the menace of black money and fake notes by reducing the amount of cash available in the system. It is also interesting to note that this was not the first time the Government of India has gone for the demonetisation of high-value currency. It was first implemented in 1946 when the Reserve Bank of India demonetised the then circulated Rs 1,000 and Rs 10,000 notes. The government then introduced higher denomination banknotes in Rs 1000, Rs 5000 and Rs 10000 in a fresh avatar eight years later in 1954 before the Morarji Desai government demonetised these notes in 1978.
Slide 13 - Thanks You !!! At the end of the day, your actions and how you explain the ongoing situation will leave a lasting impact on the young minds who will decide the future of the country.
Slide 14 - Banned Notes Constitute 90% of Total Currency
Slide 15 - People Standing in Line
Slide 16 - Welcomed New and RIP Old Currency
Slide 17 - This is How Media Reported
Slide 18 - Prime Motive is Cash Less Society
Slide 19 - Thank You