November 8th, 2016 was the historical date, which changed the economic scenario of India. On this day, Prime Minister, Narendra Modi announced the demonetization of 500 and 1000 rupee denominations to curb black money in Indian economy.
From that day on, there has been various levels of chaos all over India for getting the new currency notes.
People are waiting in queue to exchange the old currency notes.
I’m standing out in the cold, without any money. See the queue of another ATM @ICICIBank_Care, @ICICIBank #DeMonetisation #BlackMoney pic.twitter.com/7lV20TUlEK
— ✨Shipra Sinha✨ (@SinhaShipra) November 17, 2016
Bank employees are working hard to provide the common man with the new currency.
Respect ! Krishnan, Retired Bank employee, PNB came forward to work in crisis. Volunteering in the same branch he worked ; Via @Madrassan pic.twitter.com/ucogLJbPDv
— Manoj SavarimuthuRaj (@manojprabakar4) November 12, 2016
Black money holders are getting sleepless nights thinking of new schemes to hide their illegal wealth.
Amidst all of this, there is a vision behind this decision that will bear fruit in future. Here, we are discussing the five ways in which the demonetizing scheme will help the common man.
It Will Lower the Prices of Real Estate
Well, it’s a well-known fact that more than 50 percent of realty market deals in black money. If you have ever dealt with property, you would have a better idea of it. The demonetizing scheme will curb the liquidity flow or cash flow in the market that will reduce the demand for property and eventually lower the price of property.
It Will Lower the Inflation Rate
The demonetizing scheme will curb the money flow in the market. The low availability of money in the market will reduce the demand for goods and service in the market, and it will limit the inflation rate, if not reduce it. Demonetization will also lower the prices of import items like petrol, gold, etc.
It Will Help In Getting Rid Of Fake Currency
The fake currency always comes in the form of large denominations of 500 and 1000. If somehow we get the fake currency, we have to suffer a loss of five hundred bucks or thousand bucks. The current ban will help us to get rid of the fake currency, which causes significant loss to our pocket and our economy as well.
It Will Strengthen the Value of Rupee
According to the economists, if more money will come under the banking system it will increase the value of money. The increase in the value of money will further lower the price of various import items. It will inevitably affect the pocket of a common man in a positive way.
It Will Help In Curbing the Corruption
Earlier, people used to offer money for any service and to offer the bribe of some sort. If we observe the current cash crunch, it won’t be possible for anyone to offer and to take the bribe. So, this way the demonetization will curb the existing corruption in the system.
