Respected Principal, teachers and my dear friends. A wonderful morning to all of you. Today I stand before you to speak on the topic- Demonetisation.
Demonetization means the withdrawal of a coin, note, or precious metal from use as legal tender. It can be explained in simple words too. For example, when the government a few years ago demonetized Rs 500 and Rs 1000 notes, they were no longer valid as a legal currency. Usually, the government brings in new currency to replace older currency.
In India, the first case of demonetization was recorded in 1946 when Reserve Bank of India demonetized Rs1000 and Rs10,000 currency notes which were then under circulation.
The government introduced new currency notes of Rs 1000, Rs 5000 and Rs 10,000 in the year 1954. These notes were further demonetized in 1978 when the Moraji Desai government decided to do so in order to curb anti- social activities and illegal transactions.
Recently, the government did demonetization on 8 November 2016. It claimed that this scheme will unearth black money, reduce interest rates in the banking system, and create a less-cash economy.
No doubt, demonetization has benefits. Its possible benefits can be increased savings, lower lending rates, better economy, curbing anti-social activities, reducing counterfeit currency notes, etc.
It also requires the collective efforts of the people to bring the change for which demonetization has been done. It is the general public who suffers in the whole process. In 2016, it was general public who spent hours standing in a queue to exchange their currency. Some of them needed money for their daughter’s wedding, some needed for medical treatment.
But my question is that do we want to suffer for a better and improved economy? Think about it.
Thank you for lending me your ears.