Speech on Demonetization in India
Hello all, I am here today to give a small speech on demonetization in India.
On 8th November 2016, the government of India, announced demonetization of 500 and 1000 rupees notes from the midnight of the same date. The notes with those denominations would not act as legal tender. These notes were to be deposited in banks as soon as possible and the last date that was given for it was 31st December 2016. Banks, post offices and ATMs got jammed as everyone wanted to deposit those notes. In lieu of the old notes, brand new 500 and 2000 Rupees notes were brought into the market. However, the circulation of the new currency was quite slow and at that time transactions became really difficult.
There were actually two motives, which ran behind this whole demonetization plan. The first motive was to combat the problem of black money in the Indian economy and to curb corruption in the biggest way possible. After the initial phase of demonetization, the government said that they could track huge amounts of black money and brought measures to address the issue.
The second plan which fueled demonetization was making of digital India. The government emphasized on the use of technology for making transactions rather than using paper money and coins for the same. Emphasis was laid on digital banking modes like use of credit cards, debit cards, online banking through NEFT, RTGS, IMPS, virtual wallets, etc.
It was a heavily chaotic situation when demonetization took place in India. In fact, it took quite a long time for the whole situation to get under control.