Advantages of Demonetisation

advantageSince Indian government announced the decision to demonetise the high value currency, there has been a wide array of discussion across the country. The way I see it there are 4 major advantages due to demonetisation:

  1. Government’s project of ‘financial inclusion’ will be the biggest beneficiary of the recent demonetisation. This jolt has made people realise that it is better to keep their hard earned money in bank, due to this there will be an increase in new bank account openings and more money will be part of the banking system. ‘Jan Dhan’ accounts which were literally dead suddenly is up and running. Government now have              better means to reach out to the deserving people in a more organised way for financial inclusion
  2. Digital payment will see more acceptances, as of now the demand for POS machines have gone up from 5000 monthly to 5000 daily. In fact India needs 20 million POS machine against the current 1.2 million. Bank transfers, mobile wallets and    the recently launched UPI will see a positive growth. Expect new employment opportunities in payment segments
  3. Fake notes have dried up instantly which will choke terrorist funding and arms smuggling. It will take some time for people to figure out how to make new                 fake notes
  4. Government will start getting good amount of tax revenue because a number of people like self-employed workers, small businessmen, persons working in unorganized sectors, etc. will come in the tax net. This money can be utilised for the betterment of the nation

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