"Do good intentions matter if they lead to bad outcomes."

Yes I agree with the statement that good intentions are always appreciated even if they lead to bad outcomes. This is because things are not same for all. Even if that thing is causing harm to anyone then it surely has a reason behind it and its impact will be seen soon.
Demonetization simply means ending something as no longer the legal tender of country.  The currency which was legal has now become illegal. This drastic step of demonetizing 500 and 1000 rupees notes taken by our Prime Minister is to eliminate black money from our country.

Problem faced by people due to application of this scheme:
• It will not eliminate black money completely from the economy as it is mostly kept in gold, assets or any other thing with which it will be kept on a safer side.
• The people working in unorganized sector largely depend on cash for the transactions and thus facing problems.
• Difficulty in finding change for the new high denomination currency, which helps in rich purchases but not the normal middle class people.
• People have to stand in long queues in front of the banks to exchange their old currency and still not getting it sometimes due to shortage of new currency in banks.

Positive impact of this scheme:
• Black money kept in the form of 500 and 1000 rupees notes will be eliminated from the economy soon.
• Terrorism would be severely affected as their funds are now dried up.
• It will inculcate banking habits among the vast population who are not yet familiar with the banking system.
• Inflation will go down which will benefit poor and middle class people.
• Real estates related transactions will be benefitted from this move.
• With the effect of transparency there will be a constant check over the monetary usage in the country.

Conclusion:
Although it is a drastic change, but it is for our betterment. Its long term impact will definitely be beneficial for our country. Instead of complaining or getting frustrated, we should support our Prime Minister. It is our chance to raise India back to what it was.

Yes good intention matter they lead to bad outcomes so as my opinion about demotization there were good intention behind whole thing is happening in india but currently every comman man suffering from lack of cash even now a days bank also saying that have no cash.
The idea of demonetization is good but it has to be taken into consideration that most of the black money is kept in the form of land, buildings or gold or kept abroad. What is in cash constitutes only 4% of the total amount of black money on which taxes are not being paid. Out of this, a lot of money is in circulation in everyday transaction like if someone is building a house; the bill is not paid through banks for sand, bricks etc. This money goes into the other systems though it has been drawn from bank. These things will come under control with this step.

Small farmers, sellers, merchants, daily wage labourers and traders are suffering because of lack of proper planning, intelligence and foresight such as recalibration of ATM machines. There was need to pile up enough 100 Rupee notes and other smaller denomination notes in the market before taking this step. It is being said by critics that this step was taken only to bolster the image of the Prime Minister as he has been unable to deliver on GDP growth, inflation and bringing the black money from abroad.

Demonetization is an established practice in monetary policy to tackle black money. The Prime Minister has explained why this is a financial surgical strike. It was meant to be suddenly implemented. In the past, demonetization has taken place twice but it fails because the idea is to tackle the black money existing in circulation. This is not tackle corruption per se or the Government is not saying that 100% corruption will be tackled. If announcement and time would have been given, this step might not have been successful in controlling black money and counterfeit currency in circulation coming from Pakistan, Nepal or other countries.

People are facing problems because the limit of withdrawal has not been kept at a higher level. If this would have been kept at a higher level, there were chances that the recycling of black money might begin. The ideal money in circulation has to come to the banking channels.

It is also being said that what is being attempted is replacement of currency and not demonetization itself which was unnecessary. This is a terrible setback for the international standing of the Indian economy. At this time, the economy is struggling with slowdown. There is demand sluggishness in the economy leading to practically no private sector investment and stagnant industrial growth. If we look at the farm sector, this is the harvest time. Farmers generally deal in cash and India is also largely a cash economy. The cash transactions in this economy are far more than the total number of electronic transactions done on a daily basis. In the tribal heartland of the country, the poor people through middlemen are getting their currencies exchanged for Rs.300 or Rs.400 because of lack of proper information which is hitting them.

The stock of the black economy constitutes a major part of the GDP is significant. Even if 50% of this amount is withdrawn, the kind of relief that RBI will get on its liabilities and the sort of deposits commercial banks will get will lead to a rise in the deposit and later on there will be decrease in lending rates plus fiscal deficit. The black money in circulation is like a steroid in the economy which keeps the demand going gives a feeling that everything is working well. The problem is that investment is not taking place in the economy and the rate of growth of capital formation is down. The only way to bring this up is to divert more funds into investments which will happen when the cost of capital comes down

“Good intentions often get muddled with very complex execution.”
According to Investopedia, demonetization is the act of stripping a currency unit of its status as legal tender.

Now negative effects of demonetisation are:
1. It is affecting the comman people of the country, there is a shortage of money at the ATMs, long queues in and outside banks. The people of the nation are suffering.
2. The rural people and the uneducated people are not aware of online transactions. Most of them don’t even have bank accounts. They don’t have credit or debit cards so. It is really difficult to get their cash exchanged or utilize their money.
3. It is causing inconvenience amongst the people of the nation.


The black money economy is estimated to be around  Rs 30 lakh crore of which only 4-8% is in cash. 85% of the total cash has been rendered useless, of which 50% is estimated to be black money. India is estimated to have 2.5 lakh dollar millionaires. Hence the rich only represent the top one per cent of India.  Therefore demonetisation is aimed at top one per cent and against $110 billion in cash.
Discussing about the postive affects-
GST: the cash economy may multiply again within 6-9 months as Indians are more into cash transactions the cash transaction would reduce and more formal bank channels transaction would begin. The rotation of money and increased tax compliance would happen due to GST implementation.
REAL ESTATE: the industry is already suffering due to unsold inventories and now due to shortage of liquidity the market value of real estate is going to decrease. Another impact would be that now people would not save the tax from real estate.
CASHLESS ECONOMY: the cashless economy may grow at a rate of more than 100 per cent after demonetisation. This may soon turn out to be a habit- forming event for the country.
FAKE CURRENCY & TERRORISM: as fake currency is no more a legal tender, it is expected to largely impact the financing of anti-national activities.
ELECTION: It is believed that political parties spend 8-15 times more than the officially allowed amount during elections.
One should not look at demonetisation in a vacuum as it will bring out better policing, tax reforms, access to formal banking, transparency and progressive monetary laws and actions.



Here is the link to video showing the impact and effects of demonetisation.

At the stroke of the hour on midnight of 9th November 2016, India lost 86% of its monetary base. The print, electronic and social media has been praising Prime Minister’s masterstroke by which he has reportedly destroyed the base of corruption in India. In this single move, the Government has attempted to tackle all the three issues affecting the economy i.e. a parallel economy, counterfeit currency in circulation and terror financing. There is no doubt that Prime Minister has pulled out a major coop and substantially enhanced his reputation as a strong leader.

The idea of demonetization is good but it has to be taken into consideration that most of the black money is kept in the form of land, buildings or gold or kept abroad. What is in cash constitutes only 4% of the total amount of black money on which taxes are not being paid. Out of this, a lot of money is in circulation in everyday transaction like if someone is building a house; the bill is not paid through banks for sand, bricks etc. This money goes into the other systems though it has been drawn from bank. These things will come under control with this step.

Small farmers, sellers, merchants, daily wage labourers and traders are suffering because of lack of proper planning, intelligence and foresight such as recalibration of ATM machines. There was need to pile up enough 100 Rupee notes and other smaller denomination notes in the market before taking this step. It is being said by critics that this step was taken only to bolster the image of the Prime Minister as he has been unable to deliver on GDP growth, inflation and bringing the black money from abroad.

Demonetization is an established practice in monetary policy to tackle black money. The Prime Minister has explained why this is a financial surgical strike. It was meant to be suddenly implemented. In the past, demonetization has taken place twice but it fails because the idea is to tackle the black money existing in circulation. This is not tackle corruption per se or the Government is not saying that 100% corruption will be tackled. If announcement and time would have been given, this step might not have been successful in controlling black money and counterfeit currency in circulation coming from Pakistan, Nepal or other countries.

People are facing problems because the limit of withdrawal has not been kept at a higher level. If this would have been kept at a higher level, there were chances that the recycling of black money might begin. The ideal money in circulation has to come to the banking channels.

It is also being said that what is being attempted is replacement of currency and not demonetization itself which was unnecessary. This is a terrible setback for the international standing of the Indian economy. At this time, the economy is struggling with slowdown. There is demand sluggishness in the economy leading to practically no private sector investment and stagnant industrial growth. If we look at the farm sector, this is the harvest time. Farmers generally deal in cash and India is also largely a cash economy. The cash transactions in this economy are far more than the total number of electronic transactions done on a daily basis. In the tribal heartland of the country, the poor people through middlemen are getting their currencies exchanged for Rs.300 or Rs.400 because of lack of proper information which is hitting them.

The stock of the black economy constitutes a major part of the GDP is significant. Even if 50% of this amount is withdrawn, the kind of relief that RBI will get on its liabilities and the sort of deposits commercial banks will get will lead to a rise in the deposit and later on there will be decrease in lending rates plus fiscal deficit. The black money in circulation is like a steroid in the economy which keeps the demand going gives a feeling that everything is working well. The problem is that investment is not taking place in the economy and the rate of growth of capital formation is down. The only way to bring this up is to divert more funds into investments which will happen when the cost of capital comes down.

Demonetizing a currency simply means to devalue the physical money. This move is a drastic move and takes no time to implement it but the actual time to change the currency or replacing it with the freshly made note takes time. This also affects the government economically as to mint fresh notes it cost a nominal amount.
In my opinion good intention matters as move taken by Prime minister of India will help in bringing more flow of money in economy and help in reducing interest rates, which is bound to bring more investment in production and manufacturing. Cheaper loan may work as booster dose for all sector Industries.
Controlled Inflation & Lower interest rates will help strengthening India rupee against major foreign currencies. Improved Banking systems and low inflation is bound to bring lot of foreign investment in form of FDI. This is going to give good strength to Prime Minister’s “Make in India” plan.
This is a Historical decision by government of India. Prime minister of India Shri Narendra Modi has announced that Rupees 500 and Rupees 1000 currency will be discontinued from today 8th November 2016.
In one of the biggest reform in the history of India was announced live on television by honorable Prime Minister Shri Narendra Modi on 08 Nov, 2016 – i.e. Ban on Rs. 500 & Rs. 1000 currency notes with immediate effect. This is one of the boldest decision taken ever. The announcement lasted for 40 minutes and was first addressed in Hindi and then English.
The decision was taken to prevent the illegal financial transactions such as fake currency, black money, corruption and money laundering which has been India as a whole for years. Removal of big currency is the first step in preventing illegal financial activities. This big decision was not taken in a day or two. Lot of research was done in the initial phases to arrive at this conclusion. Moreover according to the estimates by the World Bank and various Indian and international agencies, the estimated size of shadow economy in India is near to 20% which has been badly impacting the economy.
Who and what might get impacted because of this decision?
1. Although the decision is in the favor of the whole country, it might affect individuals/businesses who accept/use cash only. For e.g. if someone is getting married next week then cash transactions involving Rs. 500 & 1000 notes won’t be accepted. This might affect people and economy might get destabilize for a while.
2. Those who have limited currency note of lower denomination will have to face trouble while purchasing items like vegetables, groceries, and others.
3. Share market is likely to see the impact because of this decision. Stock prices will shoot higher.
4. Rupee will strengthen as the time passes. Inflation will go down which will benefit poor and middle class people.
5. Abroad travelers who may not be visiting India in the near time might suffer.
6. Investments in gold and jewelries will increase as trust on currency will go down. More people will try to convert paper into gold. It will eventually increase investment in the government’s gold monetization scheme.
7. Rise in plastic money like debit card, credit card, online transactions.
8. New opportunities will open up for poor and middle class people.
9. Funding for arms, smuggling, terrorism will take a blow. This is most important advantage to the country.
10. Shortage of Rs. 100 notes will increase.

The entire nation was hit by a financial hurricane on November 8, 2016 when the prime minister announced the demonetization of Rs 500 and Rs 1000 currency notes and the same to be replaced by new notes of Rs 500 and Rs 2000.
The now “illegal” currency accounts for 86% of the total money that is in circulation, valued at Rs 14 lakh crore and 12% of the country’s GDP. Clearly, with these going out of circulation and new currency coming in the impact will be felt by one and all. To put things into perspective, let us look at the short, medium and long Term view of this decision.
The aim behind the government’s action was to combat tax cheating, counterfeiting and corruption. Eliminating large denominations makes it harder to hide large amounts of cash. Modi noted that the move complements the country’s swachh bharat abhiyan (Clean India campaign). “For years, this country has felt that corruption, black money and terrorism are festering sores, holding us back in the race towards development,” “To break the grip of corruption and black money, he has decided that the currency notes presently in use will no longer be legal. The goal of this is to clean transactions to clean money.

IMPACT
1) Black money
Black money stored in the form of Rs 500 and Rs 1000 notes will be taken out of our system. As predicted by ICICI Securities Primary Dealership the government's plan to scrap ₹500 and ₹1,000 notes will uncover up to ₹4.6 lakh crore in black money.

2) Terror funding


Fake Indian Currency Notes (FICN) network will be dismantled by the demonetisation measures.Taking out 500 and 1000 rupee notes out of circulation will have a lasting impact on the syndicates producing FICN's, thus affecting the funding of terror networks in Jammu and Kashmir, North-eastern states and Naxalite hit states.

3)Real estate may see significant course correction


The demonetization decision is expected to have far reaching effects on real estate.Resale transactions in the real estate sector often have a significant cash component as it reduces incidence of capital gains tax.Black money was responsible for sharp appreciation of properties in metros; real estate prices may now see a sharp drop.

4)Political parties in crisis ahead of polls


With nearly five state elections in 2017, demonetization has stunned political parties.Especially, in large states like Punjab and Uttar Pradesh, cash donations are a huge part of "election management".In one stroke, big parties will find themselves hamstrung as cash hoards are often undeclared money.Parties will have to completely rejig campaign strategies in light of expected cash crunch.

5)Moving towards digital payments


Demonetization will likely result in people adopting virtual wallets such as Paytm, Ola Money etc.: This behavioural change could be a game changer for India.

6)Temporary chaos and confusion


Public will face minor problem for a few days owing to the scarcity of lower denomination notes in the system.

”Good intentions are useless until they are expressed in appropriate action”

Demonetization is the act of stripping a currency unit of its status as legal tender. Demonetization is necessary whenever there is a change of national currency. The old unit of currency must be retired and replaced with a new currency unit.
In my opinion good intentions matters like in the current scenario Narendra Modi has announced the demonetization of Rs 500 and Rs 1000 but if it lead to bad outcomes it can effect the economy in opposite way .Narendra Modi has made an announcement on 8 Nov. 2016 that from now rs 500 and rs 1000 notes will be invalid and announced the issuance of Rs 500 and 2000 notes. This decision was taken to stop the notes used for terrorism and to cut short the black money & to reduce corruption in the economy But from his decision small farmers, sellers,merchants,daily wage labors and traders are suffering because some them are not having bank accounts and other people are standing in line to exchange their old notes from morning till evening and the ATM machines are also not working properly. Before taking this step their should be enough Rs 100 notes and other smaller denomination notes available with the bank so that people can exchange their currency.Hawala transaction would come to an end for a short period due to liquidity crisis BUT it will gain strength ,once the liquidity crisis is resolved



What Troubles Present Demonetization?
1) The rural people are facing problem because of not having bank accounts.
2) Several ATM's across the nation continue to be useless because of not having enough fresh notes.
3)  Shortage of Rs 100 notes because of improper planning.
4) New Rs 2000 note is useless for daily or day to day transactions.
5) People have to stand in that long line to exchange the money and wait for long hours.
6) Foreign tourist are facing problem.
7) Small farmers, sellers, merchants, daily wage laborers are suffering because of lack of proper planning.

Impact of demonetization:
1) Consumption will be hit due to liquidity shortage.
2) India's rate of growing faster will be affected.
3) Real estate sector will take a big hit.
4) Uprooting of parallel economy.
5) Increase usage of online transactions and alternative modes of payment.
6) Demand in the sectors like consumer good, real estate, gold and luxury goods will fall.


How will deal with corruption-

1) Fake currency- It will remove the fake currency used by terrorist and other organizations to use Indians for their benefits. Funding for arms, smuggling, and terrorism will take a blow.
2)Transparency -It will bring more transparency in the long run (cashless economy). Since circulation in counterfeit currency will see the end soon.
3) Security/faith- with security features new 500 & 2000 Rs notes are hard to fake and put people faith in Govt
4)Ensure equity & rebalance - According to FATF most of the money used in criminal activities, bribe,laundering schemes, racketeering and drug ,money kept by corrupt officials are in high end notes. Also hording of money will decrease & equality would be there.
5) Election Funding-Most of the money used by political parties are high end money use to buy candidates so it will put a stop here.

But there are certain caveats-
1) Alternative route- Most of the people will use that money in gold buying, land etc
2) Tax Heavens- The money spends in tax heavens will hardly have any affect. So little effect on black money stashed away in foreign tax heavens.

Provisions are very good but behavioural change is also required like honesty ,intregrity. Also govt should consider the various stakes and stakeholders while implementing the provisions, with utilitarian Principle in mind.

Former Prime Minister Dr. Manmohan Singh, a respected economist also called the implementation of demonetization as 'monumental management failure' and urged the Prime Minister to find a practical and pragmatic solution to give relief to the common man."It is important to take note of the grievances of the people suffering. 60 to 65 people have lost their lives, what has been done can weaken our people's confidence in currency and banking system.The former prime minister also said that the way demonetization was implemented would hurt agriculture, small businesses and informal sector and that the GDP would see a decline of at least 2.5%.Taking on RBI for every day modification of rules."It is not good that every day the banking system comes out with modification. The cooperative banking sector which is serving large number in the rural sector is not operational. PM must come with some constructive proposal on how we can implement the scheme."

Yes, I appreciate this move of our p.m narendra modi to eliminate corruption from country. India has huge black money which govt. can’t tax and that huge amount of money can form an island away from main economy. This move of stripping 500 and 1000 rupee notes may help in merging the good chunk of money with main economy. However it’s a herculean task to remove all the black money from country but a great beginning towards the mission already taken place. We’ve led a fatalistic “chalta hai” policy. Corruption cant go. The black money economy cant be hit and now that changed overnight.
This was great one time action for cleanse the system but people with black money using it in a wrong way to convert their money. People are seeking to convert cash into more agreeable holdings in gems and jewellery. People are finding ingenious ways to hide their money from tax inspectors. People are looking to line up friends, domestic staff and even senior citizen to legally exchange the cash in small enough chunks to avoid scrutiny from banks.
A fresh example; Indian railway was accepting old bills until Friday. Generally the numbers of train tickets for high class like 1st AC were around 3000 per day but on that day the number surged to 27000. That means people are paying agents for expensive first class tickets with old bills and then cancelling them to get reimbursed in new notes, all in order to get around the tax man.
The impact of demonetization can be seen in various sectors of economy. The demonetization of 500 and 1000 rupee notes the two highest currency denominations available in india will likely to hit the economy hard in short term.
The way demonetization is implemented, that would hurt agriculture, small business and that the GDP would see a decline of around at least 2.5%, according to a report.
 The service sector which dominates economic activities and involves big chunk of cash transactions is likely to be hit the hardest.
The demonetization is expected to have a neg impact on inflation. Many obstacles nowadays have been seen in consumer’s spending activity. Consumers are refraining from making any purchase except any essential items. Activity in the real estate sector which includes a lot of cash and undocumented transactions, slowed down significantly. A report states that metropolitan and tier 1 cities reported up to a 30% fall in house prices.
On the other hand, demonetization is likely to have minimal impact on the new property market. Because the new property market which is driven by home loans usually has minimal cash component in its transaction. so the probabilities of prices coming down in new property market as a result of demonetization is pretty low.
Due to more than 80% of the value of the currency notes in circulation going out of financial system the supply and demand of food items fell and it will exert more downward pressure on inflation.
According to a report the nifty 50 and the S&P BSE Sensex fell on each trading day since demonetization has been implemented. Nifty fell 6.3% from November 8 until November 22, the S&P BSE Sensex fell 5.9&
Banks already started reducing their deposits rates and due to this demonetization the lending rates are expected to fall as well. Due to expected fall in inflation the RBI will likely to consider more cuts in repo rates.
And maybe these rate cuts aim to boost consumption. This might be able to help to get the temporarily derailed economic growth back on path. Cuts in interest rate boosts the economic activity and hoping that after a lull for two or three quarters economic growth will rise.
Due to this major implementation, its quite apparent that we are now moving towards cashless economy and there will be more importance of digital transactions. People will prefer doing online transactions. That will give a boost to E-commerce. People will be using online purchasing and payment portal.
It is an open secret that both terrorism and naxalism run on counterfeit notes coupled with black money and now they have been severely hit as their funds have totally dried up. And major setback to hawala and Angadia operations in country.

Yes,Good intentions matters,but if they lead to bad outcomes good intentions become bad.In case of demonetisation intentions were good but proper planning was not there,government itself changes from their opinions which they said ealier & which they are saying now.And also new notes of 500 & 1000 was not loaded in the ATM when this heavy decision was taken due to this people facing lot of prblems.

Demonetisation is the act where old unit of currency is retired and replaced with the new one.

first of all demonetisation of 500 and 1000 Rupee notes,this initiative was taken by the Government of INDIA on 8th Nov,2016.This initiative was very much required in the INDIAN economy.As we can see the country is fully loaded with the:

1.Corruption
2.Growing Terrorism
3.Drug Menace
4.Smuggling
5.Tax(people are not paying tax)
6.Increase in Fake currency
7.Parallel economy/Unaccounted Money.

Almost all the sectors are badly affected by Demonetisation.Be it a Agriculture Sector,Stock market,Indian Railways,Businesses,Labors(Daily Wages),Real Estate, or a Automobile sector etc.With the synopsis I just want to explain how it is affected:

IMPACT OF DEMONETISATION:

(A) STOCK MARKET: Due to demonetisation, share market indices fall down.

                9th November 2016--BSE SENSEX falls approximately by 1689 points, which was a huge no.
                9th November 2016--NIFTY 50 falls by 541 points.
                15th November 2016(Intraday)--BSE SENSEX falls by 565 points.
                15th November 2016(Intraday)--Nifty was below 8100 points.

So by looking at the above figures one can easily estimate the bad affect of demonetisation on Stock Market.

(B)INDIAN RAILWAYS: INDIAN RAILWAYS is greatly affected by this move.When the demonetisation was announced by the Honourable Prime Minister Modi ji large number of people started booking there tickets particularly in classes 1A and 2A for the longest distance possible to get rid of unaccounted cash.

                   Date                           Class              Quantity(Ticket Sold)
                 
                  9th November 2016       1A                   27,237

                  9th November 2016       2A                   69,950
                   
                  13th November 2016     1A                   1209
           
                  13th November 2016     2A                   16,999


One can easily see the fall in quantity of ticket sold in Indian Railways, just after the day the demonetisation was announced and the situation 4 days later.

(c)AGRICULTURE: As agriculture sector is fully dependent on cash and were highly affected by domonetisation.Due to limiting & scarcity of the bank notes, many farmers have insufficient cash to purchase seeds ,fertilisers and pesticides which are required for plantation of rabi crops(cereals,wheat,barley,mustard,pulses) which is usually sown around mid november.

Positive Impact of Demonetisation:

(1)Rise in indian currency.
(2)Terrorism Funding & money laundering will decrease.
(3)Cashless economy,more transparency.


Benefitted sectors to demonetisation:

(1)The demand for Point of scales(POS) or card swipe machines has increased.
(2)E-payment options like PAYTM & PayUMoney has also seen a rise.

Atlast, In my opinion this was a good initiative taken by the government of India.I highly appreciate this inititaive.And also after 74 years this
step was taken, earlier demonetisation of 1000 and 10000 was taken on January 1946.In short term there will be a problem of liquidity but in long
term the growth of economy rises.

Yes good intentions matter a lot because if you have taken any major decision one will be benefited and others will be in trouble.
A special shlok from mahabharat " Do your Duty and never Expect the results"
when we talk of demonetization it has helped a lot to so many people who are doing right business and not doing any corruption and it is of a great concern to those who are doing corruption and those who are not paying taxes at all and doing business ill legally
Advantages of demonetization
1. fake currency which is running will be of no use
2. prices of property will fall because lots of black money is there in real estate
3. terrorist activities will not get any money because lots of fake money is being printed in Pakistan
4. value of Indian currency will be increased in near future

Disadvantages of demonetization
1. lots of trade has being affected by this
2. some people are facing great trouble because the are not having any accounts
3. some people keep money only in cash the are facing a lots of problem

Yes, I strongly believe so.  I think we judge something good or bad by how it aligns with, or it's fitness to our desired outcome. Or perhaps, to the way we would like or believe the world should be. On 8th November at 8pm when whole world got shocked by announcement of Indian Prime Minister Narendra Modi declared demonetization of 1000Rs. Currency as well Remonetization of 500Rs. Currency. From demonetization biggest benefit was gained by the digital mobile payment platform such “paytm”. Because due to shortage of cash  in the market most of the people are using mobile wallet and some other online platforms for payment.
According to me the rural people  are facing trouble because they don’t have bank accounts and on the other side daily workers, senior citizens, farmers, people those are on medication are facing most of the troubles, either they don’t have bank accounts or it is difficult for them to get the currency exchanged.
We all got effected from this decision of  demonetization directly or indirectly.Our day to day life is not the same now  because we have to think before doing any transaction because we all need cash to manage our day to day life we all faced some troubles to handle it but we all should respect this decision because in the short time  period it is hard to handle but in the long  it is  beneficial for us.

Impact of demonetization are :

Positive impact :
1. Black money is out from the system.
2. Flow of counterfeit currency will stop in the economy.
3. Terrorist funding will get affected by this decision.
4. Real estate may see significant course correction.
5. Moving towards digital payments.

Negative impact :
1. The rural area and uneducated people are facing many problems in online transactions.
2. Share market is  getting affected.
3. Corporate sector is also facing many problems.
4. Our day to day life has slowed down.
5. Temporary chaos and confusions.

I think demonetization is the decision which has affected our life badly as well as it leaves negative impact in the short run but in the long run it will prove to be a great and historical decision for the Indian economy.    




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Good intention not maters if they lead to bad outcome because at the end the thing which is most important is outcome.Other person or world will judge us on the basis of only outcome because the cannot understand what is our intention.if we are good and the outcome is bad than the world will see us as bad,whatever is the reason.
      In Term of Present case of demonetization our respect Prime Minister took the big      decision of banning the 1000 and 500 rupees ,so that the India can become free of black money.And the India can move to cashless economy and all the occupation which include only black money can be reduced.The decision is taken with good intention but due to some current difficulties which every body is facing after demonetization .it is felt by some people,group ,party that it is bad outcome or we can say that the good intention is not seen and only output is seen at the end.
   The trouble of Demonetization are
1.Need Cash for Daily Transaction which majorly include 1000 and 500 for business group  
2.They are depositing money in ATM Which is less than needed
3.Everyone have to wait in queue ,i.e wasting most time of Day
4.The supply of 100 rupees note is limited as it has to take place the 500 and 1000 rupee
5.Rural population don,t have there account in bank.

Impact :
1.Mostly the Daily wage worker are affected by the decision as they get daily wage in 500 rupee note and now it is stopped.
2.Each and every business is effected as there is requirement of cash in purchase and sale and for getting it everybody is standing in queue.
3.The Family in which there is marriage is affected.
4.Its is forcing business man to do there transaction in white only,as most of the transaction were in black.
5.Real estate is effected as it include more black money than white money.
6.There will be increase in no of tax payer.
7.It will increase our GDP as there will be more no of taxpayer
8.Terrorism in there region of Kashmir is reduced as the members were paid in Indian currency
9.The fake currency which was printed by some private organisation or gang is now finished
10.The use of banking and financial system will increase which will create more employment

It merely means that sometimes intention isn't good enough. I can appreciate when someone is truly trying to make a difference and they fail at it, causing unforeseen harm or pain. However, most times the failing can be prevented by thinking things through more thoroughly and making better plans.

This needs loads of bravery and boldness to take this kind of decisions and  Honorable Prime Minister Mr. Narendra Modi shows it and, surely this will be really a great decision in the long term but in the short period of time it would leave a negative impact.

I think mostly the people those who belong to rural area will face big troubles from this  because they are not that much educated and the rural areas are not that much developed so they will face lot of issues  in this  duration. The  rural areas are not that much digitalized so they will face many issues to exchange their currency. This decision will also  affect the day to day life.

This decision leads to the Demonetization of the 1000Rs. note from the economy as well as Remonetization of the 500Rs. not from the economy.

Impact of this Decision :

Positive impact :

1. Black money will be vanished from the economy.
2. Fake currency will be stop flowing in the economy.
3. Circulation of the money in the economy.
4. terrorism funding will get affected.
5. Moving towards digitilization.

Negative impact :  

1. Share market got affected.
2. Shortage of liquidity in the economy.
3. Political parties in crisis.
4. Temporary chaos and confusions.

I think this is a really good move for the betterment of the country.Ii support this decision.

Impacts of Demonetization in India:

1)Black Money
Black money stored in the form of Rs 500 and Rs 1000 notes will be taken out of our system. As predicted by ICICI Securities Primary Dealership the government's plan to scrap ₹500 and ₹1,000 notes will uncover up to ₹4.6 lakh crore in black money.

2) Terror funding
Fake Indian Currency Notes (FICN) network will be dismantled by the demonetisation measures.Taking out 500 and 1000 rupee notes out of circulation will have a lasting impact on the syndicates producing FICN's, thus affecting the funding of terror networks in Jammu and Kashmir, North-eastern states and Naxalite hit states.

3)Real estate may see significant course correction
The demonetization decision is expected to have far reaching effects on real estate.Resale transactions in the real estate sector often have a significant cash component as it reduces incidence of capital gains tax.Black money was responsible for sharp appreciation of properties in metros; real estate prices may now see a sharp drop.

4)Political parties in crisis ahead of polls
With nearly five state elections in 2017, demonetization has stunned political parties.Especially, in large states like Punjab and Uttar Pradesh, cash donations are a huge part of "election management".In one stroke, big parties will find themselves hamstrung as cash hoards are often undeclared money.Parties will have to completely rejig campaign strategies in light of expected cash crunch.

5)Moving towards digital payments
Demonetization will likely result in people adopting virtual wallets such as Paytm, Ola Money etc.: This behavioural change could be a game changer for India.

6)Temporary chaos and confusion
As most of the unaccounted wealth is particularly widespread in real estate sector, the central government’s latest decision on note ban is expected to cause problems for developers. As there will be the liquidity stress on them, they may slow down the construction works and it would eventually increase the number of residential projects getting delayed on its completion.

Cashless Economy.
The gradual transition towards digitization and a cashless economy will definitely help curb corruption in the long run. The increased transparency and record of transactions will make it considerably difficult to hold black money and carry out under-the-table deals. The added convenience of using digital payment solutions and virtual wallets can’t be ignored either.

While virtual wallet firms like Paytm are going the extra mile to make things easy for everyday consumers and small vendors, solutions like Happay are working their way towards making business transactions go cashless. Automated expense reporting solutions, coupled with their Visa and MasterCard integrated credit cards, have gained significant traction over the past few days for their complete- food, travel, medical and ad-hoc, cashfree solutions.

When the government is doing its part to curb corruption, I think switching to these cashless solutions is the least of the contributions we can make.
Demonetisation impact - Demonetisation impact decoded:Gainers and losers

The government has pulled off arguably the most significant reform measure in its tenure. While this expeditious move to boldly counter the black money and parallel economy threat is likely to have significant repercussions, importantly, this effort will have a visible impact on how the current government's policies are perceived in international circles of economic power. Most of the macroeconomic impact will be felt in the short-term, though there are larger implications in the medium- to long-term. We have tried to answer some of the more immediate questions:

What are some of the short-term impacts?
There will be a disruption in the current liquidity situation as households are likely to get affected by the note exchange terms laid by the government. Though clarity is unfolding on this, commodity transactions and general cash market transactions are likely to feel an immediate impact.

Unorganised sector proceedings, including small trade market activities, will remain volatile in the short-term. Roadside vendors, cab drivers, kirana stores, etc., have already stopped accepting Rs 500 and Rs 1,000 notes. It is important to note that a significant percentage of the Indian workforce is employed in this sector, which is likely to be affected by immediate liquidity issues. Overall, negative impact on disposable income is expected along with likely disruption in the consumption patterns of the general populace.

It is estimated that there will be a negative GDP impact in the current quarter as consumption gets a shock in the immediate term. However, quantum and degree of this impact cannot be ascertained at this time.

Firstly, I want to thanks to our Prime Minister Mr. Narendra Modi for taking such a serious action towards the black money and corruption that was the remarkable point in the history of Indian economy.
        I know this is not new for Indian economy but doing demonetization when your country's economy is booming with a good rate and almost currency of circulation is 86%, so it became very hard to take such an action. I think intentions are important for bringing about a revolution, and what is even more important is channelizing the efforts towards the achievement of the desired objective. If the outcomes are not same as those desired, then there are loopholes in the execution. This [demonetization] is a step which will make a positive difference, if the transition challenges get handled well by the administration. But we can say that this intervention is a one-time draining of this current stock of black money but unless the root causes of corruption are removed, corruption will continue. It is sort of like a dialysis, more of a short term cleaning up than a solution of the problem. It needs to be repeated periodically. People are facing a major fund crunch. The shortage of liquid cash has reached to the extent that the banks have at times refused to exchange the old currency of the common people.

Why this scheme has been implemented:-The incidence of fake Indian currency notes in higher denominations has increased. According to the reports of RBI, 40% of currency was circulated in the market but there was 76% of rs.500 note and 109% of rs.1000 note circulated. They are being used by terrorists and hoarding black money. India remains a cash based economy. Hence the circulation of fake currency notes is a menace and also there have long been concerns about terror financing through forged notes.
What are the impacts of this scheme on Indian economy?
1. Near-term blow:-
The government's demonetization effort has already disrupted the cash-intensive areas of the economy, including everyday shopping for food and supplies.
HSBC's chief India economist, Pranjul Bhandari, said in a note that about 60 percent to 80 percent of India's consumption basket is cash-intensive, including food, transport, real estate and restaurants. "We assume that growth for these components halve on the back of the monetary shock," Bhandari wrote. She expected India's full fiscal year gross domestic product (GDP) growth to be 0.7 to 1 percentage point lower.
2. Impact on daily life:-
Currently, the limit for over-the-counter exchange of old currency notes for new ones is at 2,000 rupees. Old currency above the withdrawal amount can still be deposited in banks until Dec. 30. However, Indian media reported that ATMs in the country were running out of new notes to dispense, while many bank branches were facing cash
3. Credit impact:-
On the flip side, the policy has at least a short-term positive impact on India's banking sector because withdrawal limits allow the deposit base to grow quickly as cash is deposited. In the longer term, improved liquidity could support lower deposit and lending rates.
4. Lower inflation, rate cuts?
The temporary shortage in cash and related fall in buying may also lead to lower consumer food prices as crops benefited this year from ample annual monsoon rains crucial for farmers.This could leave the door open for the Reserve Bank of India to cut its repo rate by 25 basis points in the first quarter of 2017 and "odds for another 25-basis-point cut within first half 2017 will gain traction."

Do Good Intentions Matters If They Lead To Bad Outcome

If the outcome is bad nobody cares and it hardly matters what was your intentions behind your move..In this case Its already been over a fortnight into the biggest fight against tax evasion and graft we’ve seen. India’s regulatory flip-flops are confusing citizens and criticism making round for the government’s planning. The decision that came on 8th November 2016 by the PM to make 500/- and 1000/- notes invalid has effected around 86% of currency in circulation which has brought the informal economy to a standstill and in turn affected the pensioners tourists and a common man and also people belonging to LIG and BPL in the nation as almost all payments are made in cash and about half of the population still lacks in having their own bank account .The bureaucrats tasked with the move have reversed rules twice a day on a average has made the matter more worse.
I think our PM had made the right move but the way this move have turned out reflects very poorly on the PM’s Office, omn finance Minister, RBI and all respected economist who were part of this decision.
Few issues that I saw was :
1)As how long Indians have to revalidate their own worthless bank notes.The people are desperate for cash,so much of workforce that should be productively working is wasting long hours in unending queues at the bank and ATMs
2)the small saving programs offered by post offices, focusing on Rural landscape they lack the stringent know-your-customer norms used by commercial lenders ..so people can use this loophole to stash their unaccountable income away from the government easily . Also, the officials lack proper machines to check count for currency
3)October- March being the peak season, for weddings, the amount of cash in the system shoots up as everything as they are paid for in bank notes. This demonetization had caused one of the nation’s most visible effect as the government in a way have forgotten the demand of a traditional Indian Wedding. The Effect can be seen in almost all sectors be it Stock Market, Agriculture, Transportation, Banking or Business
I Have no hesitation in calling the move an ultimately disaster.Its a simple case of Management failure that has effected a sound economy. The government in its attempt to win applauds for this move on black money issue has rushed into a decision that is poor economics and may ultimately prove to be poor politics too. And a legalized plunder of the common people.

1st Surgical Strike then Demonetization this clearly tells that the intentions are very good just matter of fact that people must understand the intentions of our Honorable Prime Minister Mr. Narendra Modi. above all the discussions/comments are tell all about Demonetization and I want to project my thoughts in different manner. I will talk about demonetization first at:
Lower Level-Small farmers, sellers, merchants, daily wage laborer’s and traders are suffering because of lack of proper planning, intelligence and foresight such as recheck of ATM machines. There was need to bring more 100 Rupee notes and other smaller denomination notes in the market before taking this step. As well as it’s a good step taken by PM Modi because Poor People earn less and that earing if they get Fake Currency it is deadly for them.
Middle Level-Middle level people haven’t get affected much but it affected in some manner that is they are facing problem to change their funds from banks which affecting day to day activity. Medium FMCG shopkeepers facing downfall in sales by 28%.
Upper Level-The creamy layer has to pay taxes on income before admitting their children to a Rs 100,000 annual fee school or a million Rupee college education. High end schools and colleges will be hit, but it open up avenues for a more efficient low cost hybrid schools and colleges with a mixture of digital and physical education. Some foreign university with high end technology solutions has to leverage this opportunity and it remains to be seen who will hit India’s middle income group, the much bigger chunk of the pyramid that awaits high quality higher education, that is currently unaffordable for them.
Now I’ll talk about the Impact of demonetization in Indian economy:
GDP is drastically effected by the same, as far as the data from economics times, they say that the GDP of this financial year i.e. 2016-17 will be less than half of the GDP in previous financial year. GDP in 2015-16 was 7.5% and for this financial year expected GDP is 3.5%, and they say even 1% decrease in GDP means Rs 1,50,000 crores gone.
Recently they also came up with an article saying that Demonetization Is positive in Real sense not in virtual sense i.e., lots of politicians just utter words demonetization but Mr. Modi implemented this which is a great task and a leader is one who should implement the things not just utter anything.
Lot of sectors have reported loss in their Companies which include cement, steel, telecom and many more. Automotive sector have faced a loss of 2.5% on 9th of November and government introduced a new rule in which PAN card is required to purchase Two-wheeler which lead to decrease their sale by 1.9%. Real estate faced a huge loss and rates of real estates has been dropped by 40%.
Our former Prime minister and great economist Mr. Manmohan Singh has said that scheme launched by PM Modi is too good but the management done by the government is not effective around 9-10 people died while standing in line. He also said that I personally feel after demonetization our country’s GDP will fall down by 2%.

Yes…..of course that intentions matter like your old house is undergoing a refurbishment and as a part of it you need to vacate your room and sleep on floor for few days. Does that cause you inconvenience? Will you accept it or say that my brothers room is still safe so why me!! you know his turn will come soon too..
The panic, chaos, inconvenience and discomfort is a temporary phase..The intention behind this move is clearly to curb black money which is the source for terrorists, goons, mafia, politicians and many other anti social elements. This is like any other emergency situation and we have to deal with it for our own benefit.
1. Note ban(an attempt to cleanse the system) had to be done one day if not today. No leader could have been able to do it better than the current Prime Minister, Mr.Narendra Modi.
2. This had to be done this way to maintain high secrecy. Though some people allege that big heads already knew, this is utter rubbish with no proof. Even if it is true to an extent, that should not be our worry. We should get out of this bad habit of thinking about others first and ourselves later. If you had paid taxes right, your money is safe.
3. Stop worrying about people who escaped. Every ones turn is to come one day.
4. This is not done all of a sudden. As step 1, govt urged people to create bank accounts under jan dhan yojna. People who created then are benefited now and they know how. As step 2, govt initiated an income tax declaration scheme where everyone is asked to declare their properties. People ignored. Now the third step is mind blowing and overwhelming is to ban the existing big notes overnight.
5. It is common man who should be happier. Deaths, suicides cannot be directly related to this. Your intellect should act and not emotion. Common man is suffering. But how long will the common man hide behind the mask of innocence and ignorance and escape with no responsibility? Let us be alert and take self care in this situation of emergency.
6. Hospitals have not accepted notes. Is this the flaw of hospital or the new rule? It was clearly stated that hospitals should accepts them.
I would say do not relate everything to note ban and accept the change with patience. If not, do you have any other choice? Even if you do not like it, you have no option. It is our country and we all shall support the govt. to execute this project.
Many of us have got used to being clueless or talking against govt. and the system. Be glad, we at least have a system in place, unlike countries like Syria. In every developed country, people stand by the govt and work as per the rules of govt. Not against the govt! Do not misuse your freedom of speech.
Lets all join together in this mission to take India to the next level and dream of Digital India.

Yes, good intentions always matters whether it leads to good outcomes or bad outcomes. The decision that was taken by our prime minister Narendra Modi on 8th of November to demonetize the notes of rs 500 and rs 1000 was indeed a good decision taken by good intention. He wanted that the black money people have been depositing in their home and not paying tax should be of no use. Everything has both advantages and disadvantages and what we should do is focus on the positive aspects. Doing things with good intentions always has good outcomes, may be not in short run but in long run. So we need to wait for the time.

IMPACT
The step taken by our prime minister was not a sudden decision. It took him months to do research and implement it. He started with his scheme Pradhan Mantri Jan Dhan Yojana and encouraging everyone to have a bank account and deposit their money in banks. People are facing many problems as they stand in queue for hours and hours in bank and ATMs and their job is being effected. They can’t go their workplace. We are looking at the problems that we are facing now but earlier also there was time when we used to stand in queues to pay our electricity and water bills. Things will change and not remain the same, people need to understand this. It is human nature that they resist change initially.
There are many advantages of demonetization. 2056 Corporates have taken loans from banks and they could not pay the loan. This lead to recession and bank declared it bad debt. Another reason for demonization is that people had money in their home but did not deposited it in bank. Now after demonetization everyone started depositing their money in banks and now bank deposits have increased. Use of plastic money has also increased since demonization. This is good sign for our economy and soon we will be dealing with plastic money and no more with cash. The black money people had will also come out and one who are not disclosing their money will be of no use.
This will also help in reducing the corruption as there would be cashless economy and everything would be done through digital media. And corruption is not possible through digital media because we need to give reasons for transferring money.

Demonetization refers to discontinuing of current currency units and replacing those currency units with new currency units. It is a major decision and it impacts all the citizens of the country because overnight all the money you have become a piece of paper which has no value if you do not exchange it with new currency units or deposit it in the banks. On 8 November 2016, an announcement was made by the Prime Minister of India Narendra Modi in an unscheduled live televised address to the nation at 20:15 IST. In the announcement, Modi declared circulation of all ₹500 and ₹1000 banknotes of the Mahatma Gandhi Series as invalid effective from the midnight of the same day, and announced the issuance of new ₹500 and ₹2000 banknotes of the Mahatma Gandhi New Series in exchange for the old banknotes.

Impact of Demonetization  

The biggest advantage of demonetization is that it helps the government to track people who are having large sums of unaccounted cash or cash on which no income tax has been paid because many people who earn black money keep that money as cash in their houses or in some secret place which is very difficult to find and when demonetization happens all that cash is of no value and such people have two options one is to deposit the money in bank accounts and pay taxes on such amount and second option is to let the value of that cash reduced to zero.
Since black money is used for illegal activities like terrorism funding, gambling, money laundering and also inflating the price of major assets classes like real estate, gold and due to demonetization all such activities will get reduced for some time and also it will take years for people to generate that amount of black money again and hence in a way it helps in putting an end this circle of people doing illegal activities to earn black money and using that black money to do more illegal activities.
The biggest disadvantage of demonetization is that once people in the country gets to know about it than initially for few days there is chaos and frenzy among public as everybody wants to get rid of demonetized notes which in turn sometimes can lead to law and order problem and chaotic situation especially in banks and ATMs which are the only medium to change the old currency units to new currency units.
Another problem is that majority of times this move is targeted towards black money but if people have not kept cash as their black money and rotated or used that money in other asset classes like real estate, gold and so on then there is no guarantee that demonetization will help in catching corrupt people.

Yes, I agree good intentions matter if they lead to bad outcomes…

Wheather the outcomes are good or bad, intentions should be good as any one can do mistakes.

In case of demonetization of Rs. 1000 note and remonetisation of Rs. 500 note decision taken by our PM Narender Modi has good intention behind it to remove black money from Indian Market. Although this decision will have positive impact on our economy as well as our nation will also develop but many people are against of this decision and they are criticizing Modi for this decision. Mostly opposition party and the people who are having black money are against of it as they are having black money in the form of Rs. 1000 and Rs.500 notes. After this decision of Modi it become difficult for them to settle their black money.

Also, middle class people are facing problems because of this decision, as they have to spend so much time in queues of Banks and ATM. Rural people are facing problems because they don’t know how to operate plastic money and many are even not having their bank accounts, although it was previously told by Modi that everyone should have a bank account. But we can see some are extremely happy with this decision, as it will help in removing corruption from market.

Impacts of Demonetization: -

1. Overall there will be negative impact on disposable income, as there is disruption in the consumption pattern of general public.
2. After this decision there is likely to be reset of spending patterns of public as this decision lead to indirectly push towards a cashless economy.
3. Business in the Fin-tech sector, like payment banks, mobile wallets, electronic transfer payment providers etc. are expected to see the gain.
4. Luxury goods market will also get affected as this move represents an erosion of real wealth to a large number of people.
5. There are chances to see some decline in inflation as demand for commodity is likely to go down.
6. Also there will be negative impact on GDP in current quarter as consumptions gets a shock in the immediate term.
7. Terrorism will also reduce due to this decision as know they can not enter in our country with fake currency.
8. Fake currency notes of RS. 1000 and RS. 500 notes will remove from market.
9. E-commerce Company will grow definatly by this decision.
10. There will be cashless economy and every one will try to learn how to operate plastic money.

Troubles: -

1. People have to stand in long queues in banks and ATMs for exchanging their money as well as depositing their old currency.
2. Traveler and Farmers are also suffering due to this decision.
3. People are facing problem of shortage of new currency for daily spending.
4. Those who are not having bank accounts are also facing problems.
5. Shortage of cash(new currency) in banks.

GOOD INTENSIONS ALWAYS MATTER:-
I want to thanks to our prime minister Mr. Narendra Modi for taking such a serious action towards the black money and corruption, that was the remarkable point in the history of Indian economy.
I know this is not new for Indian economy but doing demonetization when your country's economy is booming with a good rate and almost currency of circulation is 86%, so it became very hard to take such an action. There was a quote in the economic times of 22nd November, 2016: -
“Demonetization in a booming economy is like shooting tyres of a racing car”
Now let’s discuss on some points that why this scheme has been implemented and its impact on Indian economy: -
Why this scheme has been implemented?
Ans. The incidence of fake Indian currency notes in higher denominations has increased. According to the reports of RBI, 40% of currency was circulated in the market but there was 76% of rs. 500 note and 109% of rs. 1000 note circulated. They are being used by terrorists and hoarding black money. India remains a cash based economy. Hence the circulation of fake currency notes is a menace.
What are the impacts of this scheme on indian economy?
Ans. There are various impacts of demonetization on the various sectors of economy and they are as follows:-
1. Gold market:- It declines drastically after the demonetization because in india generally jewellers don’t used to give bills and they have no records of their income too that’s why this creates tension in the whole market so the whole market crashed.

2. Real state market :- it declines by near about 48% in two days after demonetization.

3. Digital wallet :- There is a very good boom have seen in digital wallet market. For an example we can see paytm has a growth of 2031% in just 10-15 days and even they flexibilate their policies to transfer money from their wallet to bank account from 2% to 0%. Etc. etc.
4. Impact on Black money: This is the main reason of the demonetization project and to a very good extends this project is able to live up to the expectations of the people introducing this.

5. People investing in Gold: Due to this initiative taken, people are taking undivided attention towards the purchase of gold as a remedy to their black money problem, which is also not 100% helpful in making black money white.

6.Lesser tax rates: It will tend to reduce the tax rates as the funds of the government now cannot be made black and people will now try to engage themselves in paying tax specially those who were avoiding this practice till now.

7.Economic growth: Demonetizing is not having a scope of small run. In long run it will definitely increase the growth rate and there will be a shift of black money to white.

8.Cash-less Economy: With creating a limit to withdraw Rs. 2500 per day and Rs. 24000 per week will shift the Indian economy towards online payments and PayTM, i.e. making the nation move one step towards development.

9. It will lead to Transparency as most of the people will shift their interest to online payments.

10.Impact on Stock Market: With the effect of demonetization, i.e. almost no liquidity the purchases had gone down which cost the stock market with a loss of 1300 points as all of the investors are withdrawing their money back.

11. Rich and poor on the same pace: With the effect of this the rich and poor will share common grounds of the nation and basic amenities provided by the government.

12. Funding to terrorist and other unethical activities will stop: With the elimination of black money it will simultaneously tend to eliminate the funding terrorists and engagement in other unethical activities.

13.No Printing of fake currency: It will lead to breakage of the chain of fake currency supply from China.

As the India's nominal GDP is about Rs 135 trillion one expects that about 80% of the unaccounted income would be invested in domestic or foreign asset, which are dealt through separate policies. Since the banking habits of people may not change overnight,the remaining amount of scrapped currency notes will either be exchanged or withdrawn from bank as soon as possible to restore normalcy in currency circulation for genuine economic activities.the additional deposit in banks will depress deposit and lending rates and improve monetary policy transmission.Given the slack in the economy capacity utilization at 71% is one of the lowest in the past two decades-the hesitant recovery in private investment and the crackdown on black money generating sectors like real estate and gold , credit pick up may not be commensurate with the deposit growth.
Conclusion:- I want to conclude that this is a scheme with a very good intention by the ministry of finance under the guidance of our finance minister and our prime minister mr. Modi but some where I personally feel that the implementation could be better but as we all know the plan was to introduced it on 18th of November but due to certain reasons it implemented suddenly on 8th of November.
Yes it matters if your intentions are good but it results bad because some where it affects others doesn’t matter either it is intentionally or unintentionally and I am agree on this point also that we are facing and definitely we may face some problems in the upcoming time but it results with a great and dustfree country at last.

In my opinion if something is being done with good intentions then it is good, although it might result in bad outcomes in short run but in long run they are always good.

I do agree that sometimes tasks undertaken with good intentions results bad outcomes because the cause might be good but the way the idea is implemented makes all the difference. In case of " Demonetization" despite of all the pros it possess it also has some of the cons that it.
Prime Minister Mr. Narendra Modi said Rs 500 and Rs 1,000 notes will cease to be legal tender at midnight in a late evening address to the nation on Tuesday, unleashing his government’s latest attempt to root out black money, corruption and terror financing.
The surprise move left fellow citizens flabbergasted as they sought to digest what this would mean to their daily lives but Modi exhorted them to look beyond any passing misery.
“Let us ignore the temporary hardship,” he urged. “Let us join this festival of integrity and credibility.” Modi also said that new Rs 500 and Rs 2,000 notes will be issued by the Reserve Bank of India (RBI).

India Inc praised the move, although some surmised that the “surgical strike” on black money could disrupt the functioning of the economy in the short term and lower the value of assets such as real estate.

Currency notes can be exchanged at banks and post offices from November 10 to December 30. “Keeping in mind the supply of new notes, in the first few days, there will be a limit of Rs 10,000 per day and Rs 20,000 per week,” Modi said. “This limit will be increased in the coming days.”
From November 10 to 24, the limit for exchange will be Rs 4,000. That will be increased from then to December 30. Beyond that, exchanges can be made at specified Reserve Bank offices until March 31, 2017.
ATMs won’t work on Wednesday and in some places on November 10 as well. “In the first few days, there will be a limit of Rs 2,000 per day per card,” Modi said. But government hospitals, petrol stations, the railways and crematoriums will accept cash payments in those denominations for a few days.

Finance Minister Arun Jaitley said ," the government's demonetisation move is going to have "a positive impact on the economy, including GDP".
Jaitley said there will be a positive impact "because a lot of money that operates in the shadowy economy will now become part of the banking structure" and banks "will have a lot more money to support the economy.

‘ONLY WAY TO GET BLACK MONEY’

“It is the only way to get black money from the system,” said Deepak Parekh, chairman of Housing Development Finance Corp. “There will be some lull in the economy for the short term. Construction activities would be affected. It is a bold move before the Uttar Pradesh elections.”

ICICI Bank Chief Executive Officer Chanda Kochhar said, “It is perhaps the most significant move ever taken to curtail the parallel economy.”
The move will push people toward non-cash transactions.
“It’s a hugely positive development,” said Snapdeal CEO Kunal Bahl. “A much larger proportion of India’s GDP will now flow through digital pipes. It will boost the digital economy and instruments like wallets.”
Kishore Biyani of Future Group said its stores would remain open so people use up their Rs 500 and Rs 1,000 notes.
“For the benefit of consumer we are asking our stores to be open till 11.50 pm to help people buy their daily needs,” he said.
'IMPACT OF DEMONETISATION ON INDIAN ECONOMY'
A. Financial/business impact:-
⦁ People with large amount of black money are using unscrupulous means to convert it into legitimate currency
⦁ A taxpayer has to stand in queues to withdraw his hard-earned money.
⦁ Online companies are having the last laugh as most of the white income class is resorting to online.
⦁ Small/medium sized business relying on cash transactions are seeing a total demand collapse.
⦁ Gem and Jewelry business will be hard hit.
⦁ Real estate prices will fall and the transactions volume will drop.
⦁ Second-hand car market will crash badly.
⦁ CAs will be having a time of their lives.
⦁ Banks will be having a tough time. They will be flooded with cash.
B. Political impact :-
BJP will gain tremendously. Modi’s portrait could replace Gandhi’s portrait in coming time on the walls of government offices.
1. All parties will join hands to paint the demonetisation scheme as a big scam.
2. Normal life may be impacted because of demonstrations.
3. BJP may do reasonably well in Punjab and UP elections.
4. No cash doles out in elections. Whole electioneering will change forever.
c. Social impact:-
1. Low-income people have been impacted as their payments are delayed.
2. Some people may commit suicide.
3. Cashiers and bankers will get due respect in society.
4. Marriages to become cheap. Death of dowry.
5. All medicines in white money.
6. Big blow to gambling.
7. Death of drug mafia and terror networks.
8. People now know moral status of their peers and neighbours better.
D. Impact on Indian economy
⦁ GDP will be impacted as consumption will fall -Indirect tax collection may be lower.
⦁ Disorganised work to move to organised sector.

* Demonetisation may benefit India in long term:
1. Income taxes rates may come down.
2. Loans will become cheaper.
3. Housing will become affordable

E. Asset classes:-
a. Bonds prices to increase in the near future.
b. Real estates to fall.
c. Gold rates to fall.
d. Equity markets to gain in next six to 12 months.

As with all good things, there is a bitter truth here as well. The black money may reemerge as now there is Rs 2,000 notes so paying bribes will be much easier. In fact, if the same government does not come to power again, then there is risk of reversal of some of these policies. Bribes may be paid in gold, Foreign currency or smaller denomination notes, or through consumer durables. The whole plan may boomerang as there is a complete demand collapse and people lose their jobs in the unorganised sector in the near term. So there is need for strong administration and effective policy framework to make sure these initiatives are implemented in the same nerve as they were intentioned.

Demonetisation has its bad impacts too as we can hear them everyday in news or via internet that several people who are unable to or not in good physical condition are forced to be in the queue for a mere exchange of currency, the point here that should be emphasized upon is that he had to bear all the hardships for exchanging his own momey which he had earned through his hard work.
The next point is that demonetisation had a negative effect on overall industrial production of India, let me make this point clear. Factory workers had wasted 4-5 hours on average in bank queues to deposit their old notes or to get them exchanged, India suffered a wastage of a tremendous amount of manpower as workers instead of working were standing in bank queues.
Another major point is that it will have negative effects on country's GDP and economy. Dr Manmohan Singh pointed out the ways in which it will carve a diminishing effect on Indian economy, many people may think of Dr Manmohan Singh as a PM who failed but here it has nothing to do with his political career as he is a very qualified economist and stand among the top economists of india. Another point that gives support to his stand on demonetisation is that he is Ex Governor of Reserve Bank Of India so he is well aware of the things which will be beneficial for economy and GDP and which are not.

While the intention for demonetization was good it had some bad impacts. One of the reasons given for demonetization was that it will stop funding of terrorism and will decrease terrorism as they will not have anything for buying weapons. But this week 2 terrorists were shot dead in Kashmir and to everyone's surprise they had notes of rs 2000, so terrorist have modified themselves to use new currency notes as they were using old notes. Another good intention but impact was not good enough that demonetization had a bad impact on large scale businesses as well. The businessman whose daily turnover is rs 4 lakhs can only withdraw rs 50000 from his current account which means the work which is done in 4 lakhs now had to forcefully done in rs 50k thereby decreasing its sales a complete 8 times.

Demonetization was done with good intention but it has its own bad impacts. Among many bad impacts of it one is that it as adding to people's discomfort as they had to face so many problems for getting money for their household activities, first hurdle in front of them is to find an ATM which is dispensing cash which is a herculean task after demonetization, and if somehow they got successful in finding an ATM they again had to deal with the never ending queue in front of them it is making them feel discomforted and irritated at times, adding to their hardships.

Rural people are also affected as most of them are farmers and hardly had a bank account. They also need money everyday for fertilizers and irrigation. If they go to bank for new notes who will look after their fields and if they are in fields they don't have money for irrigation or for fertilizers and pesticides.
Government has said that weekly withdrawl limit is rs 24000 but the ground reality is that a majority of banks are not entertaining a payment above rs 10000 citing shortage of ner currency. Almost all the banks are facing crisis of new currency which in turn is troublesome for common man.
Limit for withdrawal for marriage ceremonies is 2.5 lakhs but we all know that in this phase of inflation it is almost impossible to carry out all the expenses of marriage in rs 2.5 lakhs.
Demonetization has some bad impacts but let us not lose heart, we should support the decision of the leader of the nation and be optimist about the good effects.

There's a saying: "The road to Hell is paved with good intentions" Now, that doesn't mean that everyone who fails even with good intentions is going to hell. It merely means that sometimes intention isn't good enough. What matters more is what have you done to prevent such outcome and/or what do you do with the its' fallout.If you were aware that your actions can cause harm to others, you should have taken steps to prevent or minimize it to the extent of your ability.If you were not aware that your actions can harm others, it is your responsibility to fix their consequences, including making reparations for any damage you caused.
If we talk about this in the context of demonetization then the idea of demonetization is good but it has to be taken into consideration that most of the black money is kept in the form of land, buildings or gold or kept abroad. What is in cash constitutes only 4% of the total amount of black money on which taxes are not being paid. Out of this, a lot of money is in circulation in everyday transaction like if someone is building a house; the bill is not paid through banks for sand, bricks etc. This money goes into the other systems though it has been drawn from bank. These things will come under control with this step.
Small farmers, sellers, merchants, daily wage labourers and traders are suffering because of lack of proper planning, intelligence and foresight such as recalibration of ATM machines. There was need to pile up enough 100 Rupee notes and other smaller denomination notes in the market before taking this step. It is being said by critics that this step was taken only to bolster the image of the Prime Minister as he has been unable to deliver on GDP growth, inflation and bringing the black money from abroad.
Demonetization is an established practice in monetary policy to tackle black money. The Prime Minister has explained why this is a financial surgical strike. It was meant to be suddenly implemented. In the past, demonetization has taken place twice but it fails because the idea is to tackle the black money existing in circulation. This is not tackle corruption per se or the Government is not saying that 100% corruption will be tackled. If announcement and time would have been given, this step might not have been successful in controlling black money and counterfeit currency in circulation coming from Pakistan, Nepal or other countries.
People are facing problems because the limit of withdrawal has not been kept at a higher level. If this would have been kept at a higher level, there were chances that the recycling of black money might begin. The ideal money in circulation has to come to the banking channels.
It is also being said that what is being attempted is replacement of currency and not demonetization itself which was unnecessary. This is a terrible setback for the international standing of the Indian economy. At this time, the economy is struggling with slowdown. There is demand sluggishness in the economy leading to practically no private sector investment and stagnant industrial growth. If we look at the farm sector, this is the harvest time. Farmers generally deal in cash and India is also largely a cash economy. The cash transactions in this economy are far more than the total number of electronic transactions done on a daily basis. In the tribal heartland of the country, the poor people through middlemen are getting their currencies exchanged for Rs.300 or Rs.400 because of lack of proper information which is hitting them.
The stock of the black economy constitutes a major part of the GDP is significant. Even if 50% of this amount is withdrawn, the kind of relief that RBI will get on its liabilities and the sort of deposits commercial banks will get will lead to a rise in the deposit and later on there will be decrease in lending rates plus fiscal deficit. The black money in circulation is like a steroid in the economy which keeps the demand going gives a feeling that everything is working well. The problem is that investment is not taking place in the economy and the rate of growth of capital formation is down. The only way to bring this up is to divert more funds into investments which will happen when the cost of capital comes down.

TROUBLES AND IMPACT OF DEMONETIZATION


TROUBLE
1.The chief ministers of the states of Bihar, Andhra Pradesh, Odisha, and Telengana have openly expressed both support and appreciation for this move in the long run, while the chief ministers of Uttar Pradesh, Karnataka, Maharashtra, and West Bengal have expressed varying degrees of criticism and worry at the potentially very harmful short term impacts. Members of the Congress and the Samajwadi Party have violently opposed this move as well.
2.New Delhi’s Chief Minister Arvind Kejriwal has been vocally critical of the demonetization, stating that the experts he has consulted have not indicated much confidence in this move as a means of getting rid of black money. Drawing upon his own election promises to weed out corruption, he has in fact accused the government of having strategically informed its friends and allies.
3.Some leading Bank Unions have criticized the move as having been improperly planned – resulting in a severe shortage of Rs100 notes that in turn ensures that the large tender of the new Rs2000 notes is rendered useless for routine everyday transactions.
4.On November 15, the Supreme Court sat down to hear multiple petitions and four Public Interest Litigations regarding this move – some of which requested a complete rollback of this policy due to its severe impact on everyday citizens. The court decided not to stay the decision right then and instead will examine its legal validity before making a decision. After asking the government to file an affidavit justifying its notification, the court adjourned the hearing to November 25. Meanwhile, government authorities were also asked to ensure that the average citizen was not deeply impacted by this policy.
5.The rural poor who lack the infrastructure to set up deposit accounts and who currently hold all their money in cash form have been directly hit. Even those who do have access to accounts among them struggle with ill prepared banks and post offices, small and dispersed in number, and the need to take off several crucial hours from work – sometimes in vain. It is also difficult to estimate the numbers of women across the board who will be potentially irrecoverably impacted by this policy – women who do not inform their families of hidden stashes of cash, who are otherwise fully dependent on male members of the family and who stand to lose years of savings because they cannot confess to their presence.
6.Refugees who lack the requisite documents to create accounts are also now seeing months of savings potentially vanish, as they still lack mechanisms to access the banking sector. Socially ostracized communities who are again disproportionately cut off from the banking systems – like transgender communities and sex workers – are other immediate victims. This is in addition to the fact that reports indicate that the government may have over-estimated the existing levels of connectivity to banking.
7.Most foreign tourists were also unaware of the government decision and its intricacies. Recently there was a news that foreign tourist facing problems due to demonetization as the Rs 500 and Rs 1000 notes were not accepted at ticket counter of various historical places. They also faced a problem exchanging currency as with both banks and Automatic Teller Machines (ATM) shut; there was an acute shortage of 100 rupee notes.


IMPACT:
Recent demonetization has shaken the whole Indian economy. Demonetization is going to leave its impact for short and long term on parallel and main economy as summarized below.

Parallel Economy:

* Parallel economy is mainly based on cash transactions that's why has hit hard by recent demonetization.
* Some money of parallel economy is going to come in formal economy and will work as a boost for main economy.
* Finance of terror and other unsocial organization have destroyed overnight because of sudden invalidation of cash.
* It will be hard time further for parallel economy to sustain with limited cash availability.

Main Economy:

* However main economy has also affected by lack of cash and it will result in deflation.
* Money coming from inf
ormal economy to formal economy will increase liquidity for banks which further decrease interest rate and help for banks to handle their NPA.
* Reduced interest rate will boost investment.
* Land prices will fall and people will be able to afford houses.
* GST will effective from next year and combination of GST and demonetization will increase the growth rate of Indian economy.


So far, it can be said that this is a historical step and should be supported by all. One should look at the bigger picture which will definitely fetch results in the long term. This is what the people have been asking for a long time which has finally happened.