Effects/Impacts of ban on Rs. 500 and Rs. 1000 notes in India (Pros & Cons)
8 November 2016 will be one of the remarkable date for the Indian economy with the ban of Rs 500 and Rs 1000 notes .One of the biggest reform by the Prime Minister Shri Narendra Modi have been welcomed by some people while some have felt inconvenienced.
Positive Effects/Impacts of ban on Rs. 500 and Rs. 1000 notes in India (Pros)
- This step will curb down the activities of corruption and black money. People holding black money will now not be able to use their money for any transactions nor they can deposit it in their bank accounts as if they do so they will be asked for the origin of such an huge amount. For any economy to develop it is very necessary to curb practices dealing with black money and this will be a great step.
- Banks and financial institutions will be benefited as their will be huge transactions and deposits of these notes if people will get deposited in banks instead of exchange of these notes.
- Their will not be much difficulties for the general public as they can deposit their 500 and 1000 rupee notes in the banks but they cant deposit huge amount at once and therefore they should not fear by such a big step made by government.
- Inflation will go down which will be have positive impact for the poor and middle class peoples, share market will also grow.
- People will now show interest in getting usage of digital banking services due to online mode of payments which earlier people resist in making making payments through net banking.
Negative Impacts/Effects of ban on Rs. 500 and Rs. 1000 notes in India (Cons)
- People dealing in cash in their day to day life such as businessman ,labours, vegetable vendors, pedlars might be affected . People getting married in next few weeks will also be affected as they need to deal in cash in the denomination of Rs 500 and Rs 1000 which will hamper the market and economy of India .
- People not using debit, credit cards or net banking for making payments will be affected as they have to use cash for making payments. People make payments mainly on cash on delivery through online shopping which will be adversely affected and thus will impact Indian eCommerce market.
- Real estate sector deal in cash will be also be adversely effected.
This decision was taken by the government mainly to curb on black money but what do you think is it much beneficial ? Yes it is to a large extend but what do you think how much percentage of black money does ministers have in cash? It is hardly 10 % of their total and most of it is converted in the form of buying land, jewellery, transfer into swiss accounts. But yes it is a great step to bring corruption less India.