Advantages and Disadvantages of Withdrawal of ₹2000 denomination from Circulation

-

 India will withdraw its highest denomination currency note from circulation, the Reserve Bank of India said on Friday(May18,2023). The 2,000-rupee note, introduced into circulation in 2016, will remain legal tender but citizens have been asked to deposit or exchange these notes by September 30, 2023.

The value of 2000-rupee notes in circulation is Rs 3.62 lakh crore ($44.27 billion). This is about 10.8% of the currency in circulation.

Advantages of withdrawal of₹2000 banknotes

(i)  To check the fake currency

(ii)  Less impact of the economy due to printing of notes stopped from 2018-19

(iii) Also curb on hoarding of banknotes and 

(iv)  Strong flow of digital banking

Disadvantages of withdrawal of ₹2000 banknotes

(i)  Loss the credibility of bank notes due to frequently withdraw of currency for circulation

(ii)  People always in fear for deposits money in home for house wifes

(iii)  As the increasing the financial fraud through digit mode of transactions,  people believe in cash

(iv)  Financial fraud happened to me,  we not believe in digital mode of transactions

(v)  Govt take strong action on financial fraud so we can believe on bank. 





Comments

Post a Comment

Popular posts from this blog

UNIT- 1 NATIONAL INCOME AND RELATED AGGREGATES

-
Image
  1. Basic Concepts of Macroeconomics Macroeconomic   Macroeconomics is the branch of economics that deals with the behaviour and performance  of an economy as a whole. Difference between Microeconomics and  Macroeconomics Microeconomics studies the behaviour of individual economic units.  Example - demand of a consumer, price determination of a commodity It's main tools are demand and supply.  It is also called price theory Macroeconomics studies the behaviour of the economy as a whole.  Example - income and employment in the economy, money supply in the economy It's main tools are aggregate demand (AD) and aggregate supply (AS).  It is also called Income and Employment Theory.  Final Goods  Final goods refer to those goods which are either used for consumption purpose  or for investment purpose by the end user. For example - Milk, machine etc * Expenditure made on them is called final expenditure Intermediate Goods  Intermedi...
Read more

Indian Economy on the Eve of Independence NCERT Solution

-
Indian economy on the eve of independence Introduction: The sole purpose of the British colonial rule in India was to reduce the country to being a raw material supplier for Great Britain's own rapidly expanding modern industrial base. Before the British rule: The Indian economy was primarily an agricultural economy. The prominent handicraft industries which gave prime place to India in the world market were cotton and silk textile, metal industries, precious stone works.etc. During the British Rule: The main interest was to protect and promotion of economic interests of Britain's rather than the development of the Indian economy British government changed the whole structure of the Indian economy and transformed it into a supplier of raw materials and consumer of finished product of British industries.. No sincere efforts were made for estimating India's national income and per capita income but some Indian economists made efforts. It included Dada Bhai Naroji, William Dig...
Read more

INDIAN ECONOMY 1950-1990

-
  ECONOMIC SYSTEM  An Economic system is an order of an economy.  Thus. an economic system is a system of production, resource allocation and distribution of goods and services within a society. Capitalism (Free Economy/ Market Economy/ Laissez Faire) Resources are owned, managed and controlled by private individuals. The private individuals. Its main aim to earn maximum profits. Market forces i.e. demand for and supply of goods determined the price. Government’s role is limited. Socialism (Planned Economy)  Resources are owned by the society. The Government undertakes the production of goods and services. The aim, of production is welfare of the people. Economic Planning solves the basic questions. Mixed Economy  It is a combination of capitalism and socialism. Private and Public sectors co exist.  REASONS BEHIND THE ADOPTION OF  MIXED ECONOMY        (i) Economic condition of India was backward at the time of Independence. So, we w...
Read more