Structure:
Introduction: Mention the brief background of demonetization and its intention to bring the black money into the main stream.
Body: Explain the overall effect of demonetization on society in general. Explain in various dimensions how demonetization has affected the poor people. Mention how the demonetization has more adverse effects on poor compared to others.
Conclusion: Conclude that the result of demonetization was different than its objective.
Content:
Introduction:
Demonetization refers to the financial step of the government to declare a currency unit invalid. Usually, this is followed by exchanging the old currency for new currency. Earlier, demonetization of 1,000, 5,000 and 10,000 rupee notes was done in India during the rule of Morarji Desai as Prime Minister in 1978. There is an overall impact on various segments as a result of demonetization.
Body:
Impact on society:
The information on demonetization was released suddenly and the worst affected was the common man. The social impact was drastic with marriages facing severe issues with cash transactions in marriages coming to a standstill. Currently, People conducting marriages must produce the marriage invitation to withdraw 2, 50,000 and above. This has caused great hassles among the public.
The impact on the health care sector was huge with hospitals refusing to accept the old currency. The common man faced severe issues transacting in the hospitals with old currencies and several cases of death have been registered for not attending the patients due to demonetization
The impact on education sector was minimal and all universities and colleges have been instructed to enable online transactions in their website for the convenience of the students and parents. However, a lot of black money was retrieved from the educational institutions through income tax raids which was received as donations from students and hoarded as black money.
Salaried people faced the issue on the opening day of the month with their salaries credited in the bank account but were able to withdraw only 2,000 rupees from the ATM machines. Many salaried people have gone to the bank branch to withdraw their full salary amount with loss of pay.
Social problems in the form of road blockades and quarrels arouse with people waiting in long queues before the banks and ATM machines. People become restless spending an entire day to withdraw money. Several deaths have been registered as a result of waiting in long queue. Pensioners are worst affected with no special provisions made for senior citizens in banks.
