Demonetization

Economic status of India

In India, people count the investment by GDP or the incomes earned by the residents of the domestic territory of a country. The formula of GDP is the total investment by total number of employees (around India). For example- my mom gets 100 rupees, my dad gets 100 rupees, and I get 100 rupees so the formula will be: 100 plus 100 plus 100 which is equal to 300 and divided by 3 ( three members are getting money) so the economic status of my family is 100 rupees.

What is monetization?
Monetization is the process of converting or establishing something into legal tender while it usually refers to coining of currency or printing of banknotes by central banks; it may also take the form of a promissory currency.

What is demonetization?
Demonetization is the act of stripping a currency unit of its legal tender. Demonetization is necessary whenever there is a change in national currency.

Why demonetize the currency?
Terrorists of course won’t have money so how do you think the terrorists get money? Where do they get the money from? They do terror funding. This means terrorists take money from others’ bank accounts.

Advantages
As I said, demonetization can aid in nabbing the terrorists who do terror funding. We can even increase cashless payments, so like this there are many advantages of demonetization.

Drawbacks
On the other hand, there are some drawbacks also. Just to exchange money, people are wasting their time by standing in long queues. The banks are only giving 500 and 2000 rupees notes and the buyers are facing problems to pay money for minor items. These are only two of them.

As Narendra Modi said, there might be better future. So let’s wait and watch! :)

About the author: Hello! My name is Kashvi and I am from 6B. I’m writing this article to inform everyone about demonetization in detail so hope you enjoy, as well as, understand.