What is Demonetization? – Meaning
- The act of stripping down a currency note to stop corruption by introducing a new currency note.
- The process of discontinuing a currency to introduce the new one.
What are the Positive Effect of Demonetization?
- Economic Uplifting: It helps in improving the financial status of a country as all the illegal money is discovered as is added back to the market.
- Digital payments got more popular: People understood the benefits of digital payments and started relying on it more.
- Control over the Fake currency: As new currency was introduce, the old one lost its value and so did the fake currency notes which were being circulating since years.
- Reduced Black-money: In easy terms, demonetization helps the country to get rid of the black money.
- Transparency: As every penny you own is accountable for, it brought transparency in the real estate business.
- Lower Interest in bank loans: As the economy of the country becomes better, the government is providing people with easy loans in less interest.