A new Rs.20 note is set to enter the currency market in India, and is being released soon by The Reserve Bank. Bearing an alluring greenish-yellow color, the new note carries a motif of Ellora caves on it’s reverse with a portrait of Mahatma Gandhi at the center and including micro letters such as- “RBI”, “BHARAT”, “INDIA” and “20” on it’s front.
This has definitely not been the first time our current government had re-issued currency notes in it’s ruling time. With an announcement that shook the country on 8th November 2016, the government demonitised the banknotes of 500 and 1000, making them invalid from midnight. On 10th November 2016, newly designed notes of Rs.500 and Rs.2000 stared circulating and a new denomination of Rs.200 and Rs.100 were released on 25th August 2017 and July 2018 respectively.
“Every coin has two sides.” This is true in this case as currency change definitely had two very adverse effects on the citizens of our country as well as our economy. An official Indian Economic Survey tells us that the good effect on our economy included- usage of digital transactions at a much faster pace, moving to a cashless economy, inflation rates going down, Increase in Bank loans for small business, a boost in automobile sales and the increase in number of people using mobile wallets.
But it was not all a success, as various problems were faced in the months leading up from demonetization. Our economic growth slowed down, and sales were hampered significantly. There were long queues for changing of the notes and many ATMs went ‘out of stock’ pretty soon. People didn’t have enough cash to buy basic commodities and uneducated people faced problems in getting currency notes exchanged. The GDP growth rate of 8.01% in 2015-16 fell to 7.11% in 2016-17.
According to statistics, demonetization today still affects our country’s economy, though not at a scale so large as it did.