Demonetisation failed to make India a ‘less cash’ society
6 years, 6 months ago

Demonetisation failed to make India a ‘less cash’ society

Live Mint  

On 8 November 2016, Prime Minister Narendra Modi announced the “demonetisation” of high-value currency notes. Now that sufficient time has elapsed, it is possible to bring data to bear on the specific question: Has demonetisation succeeded in making India a “less cash” society? If the former, it would provide conclusive evidence of long-run behavioural change, with the Indian public, goaded by a temporary currency shortage, nudged into permanently preferring to hold less cash as a share of broad money, even when the cash crunch has disappeared. It should be added that the failure of demonetisation to make India a less-cash society does not necessarily imply a complete failure of the larger digitization drive—data suggest that some components of digital payments are up after November 2016, although it is not clear if this is merely a continuation of pre-demonetisation trends or an effect wrought by demonetisation. For instance, on 30 August 2017, finance minister Arun Jaitley was explicit that India is a “high cash economy” and that changing this was a goal of demonetisation.

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History of this topic

From the India Today archives (2016) | Demonetisation: When the entire nation queued up
1 year, 7 months ago

From the India Today archives (2016) | Demonetisation: When the entire nation queued up

India Today  

The usually bustling vegetable and fruit market under the Maharashtra Agriculture Produce Market Committee at Vashi in Navi Mumbai wears a desolate look on Saturday, November 19. Various agencies have estimated black money at roughly 20 per cent of India’s GDP, at over Rs 30 lakh crore. But the move, unprecedented as it was, has also badly hit several sectors …

Centre’s data proved demonetisation was a total failure: Uttam
1 year, 10 months ago

Centre’s data proved demonetisation was a total failure: Uttam

The Hindu  

Congress Lok Sabha member N. Uttam Kumar Reddy said that the BJP Government has finally admitted that it has failed in achieving all the objectives of demonetisation it implemented in November 2016. Mr. Uttam Kumar Reddy said that the statistics pertaining to Currency in Circulation and the value of Notes in Circulation provided by the Finance Minister clearly show that …

From the India Today archives (2016) | The pangs of demonetisation
2 years ago

From the India Today archives (2016) | The pangs of demonetisation

India Today  

The usually bustling vegetable and fruit market under the Maharashtra Agriculture Produce Market Committee at Vashi in Navi Mumbai wears a desolate look on Saturday, November 19. Various agencies have estimated black money at roughly 20 per cent of India's GDP, at over Rs 30 lakh crore. But the move, unprecedented as it was, has also badly hit several sectors …

Six years on, jury is still out on efficacy of demonetisation
2 years, 2 months ago

Six years on, jury is still out on efficacy of demonetisation

Deccan Chronicle  

NEW DELHI: The jury is still out on the efficacy of the decision to demonetise high value currency notes on November 8, 2016, with the government claiming it has helped greater formalisation of the economy while critics saying it has failed to curb black money and reduce dependence on cash. On November 8, six years ago, Prime Minister Narendra Modi …

Demonetisation was a colossal failure, Modi should apologise: KTR
2 years, 2 months ago

Demonetisation was a colossal failure, Modi should apologise: KTR

Deccan Chronicle  

HYDERABAD: TRS working president and IT minister K.T. Rama Rao described the demonetisation, announced by Prime Minister Narendra Modi on November 8, 2016, as a 'colossal failure' and demanded his apology. Rama Rao based his demand on recent Reserve Bank of India data which revealed that six years after demonetisation the cash with the public had increased by 72 per …

Demonetisation helped curb black money: Narendra Modi
4 years, 2 months ago

Demonetisation helped curb black money: Narendra Modi

The Hindu  

On the fourth anniversary of demonetisation, Prime Minister Narendra Modi on Sunday said the move helped in reducing black money, increase tax compliance and formalisation of the economy. In a video, released as part of this campaign, Mr. Gandhi held demonetisation responsible for Bangladesh doing better than India in terms of economic growth and alleged that the move “destroyed” India’s …

Demonetisation ‘destroyed’ economy, helped few crony capitalists, alleges Rahul
4 years, 2 months ago

Demonetisation ‘destroyed’ economy, helped few crony capitalists, alleges Rahul

The Hindu  

Congress leader Rahul Gandhi on Sunday slammed the government over demonetisation, alleging that Prime Minister Narendra Modi’s move four years ago was aimed at helping a few of his “crony capitalist friends” and had “destroyed” the Indian economy. In a video released as part of the party’s online ‘SpeakUpAgainstDeMoDisaster’ campaign, Mr. Gandhi said the question is how the economy of …

Three years after demonetisation: Lot of sound and fury signifying nothing
5 years, 2 months ago

Three years after demonetisation: Lot of sound and fury signifying nothing

India Today  

Cash is back in full circulation in the country, India is yet to become a cashless economy, black money circulation remains unchecked and counterfeiting of notes has not stopped yet. The Modi government's note bandi move, which rendered old Rs 500 and Rs 1,000 notes invalid, eliminated 86.4 per cent of the total currency in circulation, initially triggering panic among …

The impact on India’s economy of demonetised currency returning to banks
6 years ago

The impact on India’s economy of demonetised currency returning to banks

Op India  

In November 2016, Prime Minister Modi announced the withdrawal of two high-value currency denominations from circulation with immediate effect. Expansion of Taxpayers base Per published data, the number of Income Tax returns have zoomed by 57% since demonetisation IT returns filed in FY14 were 3.79 crore IT returns filed in FY16 was 4.36 crore, implying that growth over 2 years …

2 years of demonetisation: Arun Jaitley praises note ban, says it led to formalisation of economy, created more resources for poor
6 years, 2 months ago

2 years of demonetisation: Arun Jaitley praises note ban, says it led to formalisation of economy, created more resources for poor

India TV News  

On second anniversary of demonetisation, Union Finance Minister Arun Jaitley on Thursday praised the note ban and said that it helped in formalisation of the economy that led to more revenue, more resources for the poor, better Infrastructure, and a better quality of life for India’s citizens. In a Facebook post titled “Impact of Demonetisation”, Jaitley said that the Government …

Cash transactions up after demonetisation but India’s ATM network far from adequate
6 years, 3 months ago

Cash transactions up after demonetisation but India’s ATM network far from adequate

Live Mint  

Although demonetisation seemed to put a dampener on India’s cash economy, data shows that it might not have been a lasting impact. The TCPSL report said that India witnessed significant growth in the volume of cash transactions even after demonetisation. The TCPSL report states that even though India’s urban population has adapted to digital payments and transactions, the country’s vast …

Congress demands apology from Narendra Modi after RBI report says 99.3% of demonetised notes back in system
6 years, 4 months ago

Congress demands apology from Narendra Modi after RBI report says 99.3% of demonetised notes back in system

Firstpost  

Congress said the return of almost all the junked 500 and 1,000 currency notes meant that Modi government had failed to unearth any black money, eradicate fake currency as promised New Delhi: The Congress Wednesday demanded an apology from Prime Minister Narendra Modi, alleging he lied to the country over the demonetisation issue, after the reserve Bank of India said …

Despite Jan Dhan push, financial inclusion is elusive
6 years, 5 months ago

Despite Jan Dhan push, financial inclusion is elusive

Live Mint  

New Delhi: A shortage of bank branches and ATMs across India’s hinterland is holding back Prime Minister Narendra Modi’s financial inclusion efforts and risks angering rural voters ahead of elections next year. After taking office in 2014, Modi set an ambitious target to open a bank account for every household to ensure welfare funds flow directly to India’s poor, while …

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