What is the benefit of demonetisation?
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What is the benefit of demonetisation?
While demonetisation imposed short-term costs, there have been important benefits via the above-mentioned increase in direct tax collections as a proportion of GDP, and the sharp, persistent rise in digital payments, said KV Subramanian, chief economic adviser to the government, in this Livemint article.
Was demonetization a good decision?
The government insists that demonetisation was a success, saying that it led to the formalisation of the economy, reduced dependence on cash, increased tax compliance and gave a boost to digital payments.
What are advantages and disadvantages of Demonetisation?
A Comparison Table for Advantages and Disadvantages of Demonetisation
| Advantages | Disadvantages |
|---|---|
| Demonetisation can result in a decrease in tax evasion by individuals and ensure the implementation of practical public measures. | Every ATM in the country needs to be remodified to allow the exchange of currency. |
What is demonetization advantages and disadvantages?
A major advantage of demonetisation is that it helped the government track black money. Large sums of black money was kept hidden by tax evaders. Demonetisation helped government uncover huge amount of unaccounted cash. Demonetisation is acting as an effective countermeasure against such activities.
What happened on demonetisation?
On 8 November 2016, the Government of India announced the demonetisation of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series. It also announced the issuance of new ₹500 and ₹2,000 banknotes in exchange for the demonetised banknotes.
Was demonetisation a good policy decision Quora?
It was a very wise decision. The intention of November 2016 Demonetization was to attack black money. It was a great success. Black money in India was destroyed.
What is Demonetisation and its advantages and disadvantages?
What were the advantage and disadvantage of demonetisation in India?