DEMONETIZATION Corruption and Black money|demonetisation article

demonetisation and corruption essay|how did demonetization stop corruption|total black money caught after demonetisation|total black money caught after demonetisation

We always try that we keep on giving you the official announcement , Historic move,and plans of the government.  And today, through our website Historic move to end Corruption and Black money . We will keep giving you information about  Demonetization . You are highly informed about our website.

In a historic move towards ending corruption , Black money , money laundering, terrorism and financing of terrorists  as well as counterfeit notes, the government of India announced a massive demonetization drive on 8th November 2016. In a live address to the nation, Prime Minister declared circulation of all rupee 500 and rupee 1000 banknote as invalid and announced the issuance of new Rupee 500 and Rupee 1000 banknotes.

how did demonetization stop corruption

  • On humanitarian grounds notes of 500 and 1000 rupee were accepted at government hospitals, Pharmacies in government hospitals, booking counters for railway tickets, Government busses, airlines tickets, petrol.
  • It was later decided (15th November )to introduce indelible ink used during election for over the counter exchange against old Rupee 500/- and 1000/- notes to prevent misuse of exchange facility and enable large number of person to draw cash. Families allowed to withdraw Rupee2.5 lakh for weddings from one account of either of the parent.
  • Central Govt. employees up to group C allowed to draw salary advance up to Rupee 10000/- in cash that would be adjusted against their November salaries.
  • Farmer can draw upto 25000/- per week in cash from their KYC account only. This is subject to normal loan limits and conditions. This facility will also apply to kisan Credit cards (KCC).
  • Farmer are currently selling their produce from Kharif season In the APMC market. Farmers who are receiving such payments in their bank accounts through cheque/RTGS are permitted  to draw up to Rs.25000/- per week in cash.
  • To ensure sustainability of farmers during RABI season, the government will allow farmers to  purchase seeds with old high denomination bank notes of Rs.500 from centres, units, outlets of Central or state Government, PSU, National or state seed corporations, central or state University and ICAR  by showing proof of identity.

Key provisions of the move are as follows

  • 500 and 1000 Rupee notes cease to be legal tender from the midnight of 8th November 2016.
  • Old notes of Rupee 500and 1000 allowed to be deposited in bank and post offices from 10th November to 30th December 2016 without any limit.
  • Cash withdrawal from banks limits to 10000rupee per day and Rupee 20000 per week.
  • Exchange of old notes of Rupee 500and 1000 allowed at banks, head post offices  and sub post offices with valid ID proof. A limit of Rupee4000 (later increased to rupee 4500/- and further revised to Rupee2000/- per person) set for exchange upto 24th November 2016.
  • Withdrawal from ATMs restricted to Rupee2000/- which was later increased to Rupee2500/-
  • No restriction on any kind of non cash payments by cheques, Demand drafts, Debit or credit cards and electronic fund transfer.

demonetisation and corruption essay

This  is a continuation of a series of measures taken by the government so that the menace of black money is  overcome. The very first decision of the present government was the formation of a SIT on black money. A law was passed in 2015 on disclosure of foreign bank account. In August 2016 strict rules were put in place to curtail benami  transactions. During the same period a scheme to declare black money was introduced. Over the past two and a half years, more than RS. 1.25crores of black money has been brought into the open.

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