1. Importantance of demonitization ... In points.... ?????
2.Features of Demonitization???
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Dear Student,
Here is your answer,
Ans Importance of Demonetisation:
1. Demonetisation as tax administration measure: It ensures that isn't there any black money on which tax is evaded.
2.Tool for savings: Demonetisation was the tool to increase the savings in the economy as many persons deposited their money into the bank accounts.
3. Making Cashless economy: Another feature of demonetisation is to create a less-cash or cash-lite economy, i.e., channelling more savings through the formal financial system.
Regards.
Here is your answer,
Ans Importance of Demonetisation:
- Increased Savings – As a result of demonetization, people will tend to deposit their cash in the bank rather than at home. This will help them save more.
- Lower lending rates – With currency demonetization, money moves from people to banks and financial institutions. Thus, there is a better circulation of money. This will lead to a lower cost of funds which translates into lower lending rates.
- Better economy – As more cash is with the banks, there is a higher circulation of money in the economy. The government receives more taxes and can undertake more development projects. This leads to a better-performing economy.
- Curbing anti-social activities – Usually, cash is the mode of transaction for anti-social activities. Thus demonetization curbs these activities. It also forces anti-social units to find ways to get rid of the old notes. As a result, there is better control over the unaccounted money in the economy.
- Reducing counterfeit currency notes – Banks check if the old notes are genuine or counterfeit before accepting them. Thus, this allows the government to weed out counterfeit notes from the market.
1. Demonetisation as tax administration measure: It ensures that isn't there any black money on which tax is evaded.
2.Tool for savings: Demonetisation was the tool to increase the savings in the economy as many persons deposited their money into the bank accounts.
3. Making Cashless economy: Another feature of demonetisation is to create a less-cash or cash-lite economy, i.e., channelling more savings through the formal financial system.
Regards.