The aftermath of Demonetization in the lives of the common man

Demonetisation | Won't Sit With Folded Hands, Can Examine Manner In Which  Decision Was Taken, Says Supreme Court

On 8th November 2016, the Modi government announced the decision to demonetize all the 500 and 1000Rs notes which belonged to the Gandhi series. It also declared the issuance of the new 500 and 2000Rs notes. It was a huge defense from the side of the opposition to the Modi government, as it puts the people of the country, especially the common man to adopt and get easy access to the new notes of 500 and 2000Rs in the country. The opposition called the Demonetization decision “A Modi- Made Disaster”, it was in a way that the ruling party was blind towards the citizens and towards the meaning of equality in the constitution. The sudden decision without information from the Modi government created a shift in the smooth functioning of society and the related sectors.

The aftermath of Demonetization switched its impacts on all sectors of society, especially the agricultural sector, Farmers tried hard to make both ends meet as most of the transactions done by them were in cash mode. The sudden demonetization disturbed the value chain of the agricultural sector. Millions of farmers didn’t have bank accounts and the flow of money came to a standstill, they had fewer options to even exchange currencies or get access to new ones. This acted as a hindrance to the agricultural sector as they struggled to get crops, fertilizers, pesticides, and other basic requirements. This affected the entire economy as the eatables such as fruits, vegetables and other products available in the market had a spike in their prices owing to the difficulty faced by Farmers in the agricultural sector.

Was demonetization good for society as a whole?

The only notable merit of demonetization is that it eradicated the counterfeit currency lobby. When the government decided to demonetize the currencies, the legal tender was canceled and this in turn destroyed the usage of counterfeit currencies. Demonetization that was introduced in India wasn’t a cent percent success as well as not a failure. It helped the banking sector undergo improvements considerably. It eradicates counterfeit currencies, which in turn will stop the flow of illegal currencies in society.

The demonetization reduced the liquidity and cash flow in the society, which in turn bought down inflation. As the flow of black money gets stops, the money supply will shrink to a degree. This is one of the notable merits of demonetization in society. It has demerits too, the sudden demonetization in the society paved the path of difficulty for the citizens as they ran for getting the newly released notes and the flow of currency to banks was slow.

In conclusion, demonetization was good as well as bad, the chaotic situation bought the lives of the common man to a standstill as they struggled to get their daily chores done with the shortage of money in hand. 

By admin

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