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[ Ссылка ] Hey welcome back to the series of business environment
in this video we are going to learn about Demonetisation
As we all know Government of India, announced on November 8, 2016 that The two largest currency notes, `500 `1,000, were ‘demonetised’ with immediate effect, came to an end………. to be legal tender
This led to eighty-six (86%) per cent of the money was invalid.
So people has to deposit their invalid currency in the banks
but restrictions placed on cash withdrawals.
In other words, restrictions were placed on the convertibility of domestic money and bank deposits.
The aim of demonetisation was to control corruption,
To eliminate fake use of high denomination notes for illegal activities;
and especially the accumulation or gathering of ‘black money’ generated by income that has not been declared to the tax authorities.
Next
Moving on to the Features
1. Demonetisation is basically viewed as a tax administration measure.
On time of demonetisation Any one can easily deposited in banks and exchanged for new notes.
But those with black money had to declare their unaccounted wealth and pay taxes at a penalty rate.
Second Feature
2. Government Straightly indicating that tax evasion will no longer be tolerated or accepted.
Third Feature
3. Demonetisation also led to channelizing savings
into the formal financial system.
Though, much of the cash that has been deposited in the bank and new schemes offered by the banks will loans, at lower interest rates.
Fourth Feature
4. demonetisation is to create a less-cash or cash-lite economy, like, Digital transactions amongst new users like RuPay and digital wallets.
Next moving on to Impact of Demonetisation
This is a simple chart it shows on which area, what are the affects.
Area Effect
1 Money/Interest
rates i. it Decreases in cash transactions
ii. it increases in Bank deposits
iii. it also Increase in financial savings
2 In Private wealth It Decreases due to some high demonetised notes were not return and real estate prices fall
3 In Public sector
wealth No effect on it
4 In Digitisation It help to transact amongst new users like RuPay and digital wallet it increases
5 In Real estate Prices falls down
6 In Tax collection It helps to Rise in income tax collection
Click here to watch next video……. which in on
Impact of Government Policy Changes on Business and Industry Or….. go back and watch Liberalisation, Privatisation, Globalisation
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