1. IMPACT ON GENERAL PUBLIC
DEMONETIZATION
AND ITS
IMPACT ON GENERAL PUBLIC
Presented by:
S.udaykiran
B.com-A

2. WHAT IS DEMONETIZATION ?
“Demonetization is the withdrawal of a particular form of currency from circulation.”
It is a process by which a series of currency will not be a legal tender.
The old unit of currency must be retired and replaced with a new currency unit.

3. HISTORY OF DEMONETIZATION IN INDIA
Earlier it was done in 1946 with the complete ban of Rs.1000 and Rs Notes to deal with the unaccounted money i.e. Black Money.
Second time, it was done in 1978 by Morarji Desai’s government where Rs.1000, Rs.5000 and Rs Notes were demonetized.
On November 8, 2016 the Prime Minister gave a call for Demonetization of Rs.500 and Rs.1000 Notes

4. Reasons for Demonetization
To eradicate counterfeit currency
Eliminate black money
Curb terrorist funding activities
Promote a cashless economy
Fight tax evasion
Eradicate corruption
To bring more transparency

5. IMPACT ON GENERAL PUBLIC
Scarcity of cash
Slowdown in consumer spending
Tax revenues increased
Loan burden decreased
Farmers faced problems regarding the purchase of seeds, fertilizers and pesticides
Easy loans
People started opting cashless transactions

6. Pros
Cons
Increase in GDP
Every transaction will be
accounted
Transparency increases in
the economy
End of huge donations
Towards a cashless
economy
Rush at banks
Shortage of money
Negative effect on
trade
Short term inflation
Unemployment rate
increased

7. THANK YOU