Demonetisation a biggest step by our Prime Minister, According to this from November 8th 2016 onwards 86% of India’s currency was nullified in a great effort which aimed to clean out the black market’s cash supply and counterfeit notes which completely disrupted the social, political, and economic spheres of the world’s second largest emerging market and this sudden action overtook the country like a flash flood. People faced so many problems because of this step, moreover our economy also faced so much of loss but slowly these problems were solved by different steps of government and this decision let out to be useful and profitable. Though many problems are being solved but still there are some loopholes in this system like:
- The Supreme Court recently pulled up the Centre and the RBI over demonetisation measures taken, asking why they did not give a window to citizens to deposit old currency notes or exchange their notes after December 31 as Prime minister in his speech on November 8 himself said that people with genuine difficulties can deposit the demonetised currency till March 31 2017. The Apex court gave the Central government and the RBI two weeks’ notice time to reply the notice.
- Another point which is very common nowadays which is fake or misprinted notes from ATM. Recently, a man named Atlaf chaki reportedly received six misprinted Rs.500 from a Bank of Baroda ATM in Jamnagar, Gujrat.
- Recently the Centre proposed to lower the limit of cash transactions to Rs.2 lakh from the earlier proposal of Rs.3 lakh in the Union Budget. The penalty for violating it will be a Fine equivalent to the amount of transaction.
- SBI research has attributed the lower outward remittances and massive jump in travel receipts,which bumped up the December quarter CAD, to the note ban impact that dominated the review period. The upward revision in exports is one of the main reasons in containing CAD, says the report.
- Many cases of fraud are coming forward in which people have converted their black money into legal money by various ways of frauds like by converting their money into gold or silver, or some people who had their links in banks they took their help for exchange of the currency .