Serial Tendering Advantages And Disadvantages

The move to digital currency: Some commentators argue that in the future, we will all be using digital currency, such as bitcoins.

Tax Collection: Money deposited in the bank during demonetization can be taxed especially if the affected parties were trying to evade taxation by keeping hard cash.

Taking certain notes out of circulation can help the government to control public spending.

Controlling inflation: Demonetization is usually cited as having one key advantage: this is that it can control inflation.

Getting fake currency out of circulation: Demonetization can also be used to get fake currency out of circulation in a country’s economy since such currencies cannot be deposited in banks and other financial institutions.

Below are some of the key advantages that are often associated with demonetization. Advantages of demonetizationĭemonetization was introduced as a policy because it was thought to have numerous advantages.

Usually, demonetization is part of a wider process, which involves the old currency being replaced by a new one.Īn explicit policy of demonetization makes the whole process clear: the old banknotes will no longer be considered legal tender. After a certain cut off date, it is not possible to use those notes and coins to pay for things. Demonetization can be applied to coins, bank notes and all other forms of currency.

Serial Tendering Advantages And Disadvantages