Different sections of the society were affected differently because of note ban decision. Here’s a reality check of the positives and negatives the Economy and society faced as an aftermath of Demonetisation.
How Demonetisation NEGATIVELY affected us:
- As per various reports, around 100 people lost their lives ‘due to demonetisation’. While some died standing in long queues for hours, others died of starvation because of no money in their houses. Some also died because they didn’t have any money to pay for the medicines at various hospitals and pharmacies, as some of them were initially refuting to accept demonetised currency
- The note ban has reflected negatively on the country’s Gross Domestic Product as well. Where on one hand Government claims that economy has grown post demonetisation, figures say that GDP was at 7.4% before demonetisation, whereas after note ban GDP came down to 6.1%
- Not just economy, several people had to face hardships after note ban, especially elderly people who are on their own, as they had to spend hours standing in long queues for getting their old currencies converted. Even uneducated people had to suffer great deal as they were clueless why shopkeepers refused to accept their money and had to return empty handed from shops
- Another major problem faced by people was lack of cash on ATMs and in banks. Many people even after standing in queues for hours had to return empty handed as ATMs and banks didn’t have sufficient amount of new currency
- As a result of demonetisation, several people lost their jobs as many businesses were hit hard.
How demonetisation POSITIVELY affected us:
- One of the biggest positive changes after demonetisation was an inclination towards Digital mode of payments. Many people, who had no idea about digital payments, educated themselves as they had no choice. Even small vendors and cab drivers moved towards Digital money
- As per Government’s data, the tax payers’ base has increased after demonetisation. The government claims that 1 lakh 25 thousand new tax payers have emerged in one year
- The Government also claims that 2 lakh shell companies which were open only to store black money have come into light and have been sealed
- The government also claims that the funding which was being received by the terrorists to create ruckus in India especially Kashmir has reduced after banning of old currency and introducing the new one
- One of the biggest beneficiaries of note ban has been commercial banks who were under debts as big as Rs 8 lakh crore