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 rural population as a whole still prefers to transact in cash. This calls for a revamp, but there are several hurdles in the way, including slow ATM roll-out by banks due to feasibility challenges like high interchange rate and erratic cash flow at existing ATMs. The report goes on to study the distribution of ATMs by PSU banks and private banks, as well as white-label ATMs which are run by non-bank entities, and regulated by RBI, showing that WLAs drive cash accessibility especially in rural and semi-urban areas.

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History of this topic

Impact of ₹2,000 notes withdrawal: Currency-in-circulation growth dips to 3.7% in February
10 months, 3 weeks ago

Impact of ₹2,000 notes withdrawal: Currency-in-circulation growth dips to 3.7% in February

The Hindu  

The growth in currency in circulation decelerated to 3.7% for the week ended February 9 from 8.2% a year ago, reflecting the impact of the decision of the Reserve Bank of India to withdraw ₹2,000 banknotes. According to the RBI, commercial banks have reported double-digit growth in deposits in January, which too can be attributed to withdrawal of ₹2,000 currency …

RBI says India’s growth momentum to continue in FY24; stresses on structural reforms
1 year, 7 months ago

RBI says India’s growth momentum to continue in FY24; stresses on structural reforms

The Hindu  

The Reserve Bank on May 30 said that India’s growth momentum is likely to continue in 2023-24 even as it made a case for pushing structural reforms to deal with the geopolitical developments and also to achieve sustained growth in the medium-term. The Reserve Bank’s annual report flagged slowing global growth, protracted geopolitical tensions and a possible upsurge in financial …

No panic among public after withdrawal of ₹2,000 notes, shows survey
1 year, 7 months ago

No panic among public after withdrawal of ₹2,000 notes, shows survey

Live Mint  

A survey has shown that there is no panic or fear among the public after the Reserve Bank of India announced the withdrawal of ₹2,000 currency notes. The survey, conducted by LocalCircles, received 11,541 responses on the question if people support the government’s move of withdrawing ₹2,000 notes from circulation. The survey showed that 64% of respondents in support of …

₹2,000 note move may have marginal impact
1 year, 7 months ago

₹2,000 note move may have marginal impact

Hindustan Times  

Markets are often curious to decipher the motive and timing of policy decisions, apart from the possible impact. If the ₹2,000 notes are converted into smaller denominations, there is no impact on overall currency in circulation, but in case of these being deposited into bank accounts, cash in the system will drop immediately, and bank deposit growth will pick up. …

Himachal: Devotee donates ₹8 lakh in ₹2,000 notes at Jawalaji Temple
1 year, 7 months ago

Himachal: Devotee donates ₹8 lakh in ₹2,000 notes at Jawalaji Temple

Hindustan Times  

Two days after the Reserve Bank of India announced the withdrawal of ₹2,000 banknotes from circulation, the authorities at Jwalaji Temple in Kangra district found 400 notes of the denomination in its donation box. A day after the Reserve Bank of India announced the withdrawal of ₹ 2,000 banknotes from circulation, the authorities at Jawalaji Temple in Kangra district found …

Big deposits of ₹2,000 notes in Jan Dhan accounts will draw tax scrutiny
1 year, 7 months ago

Big deposits of ₹2,000 notes in Jan Dhan accounts will draw tax scrutiny

Hindustan Times  

Mass cash deposits are likely to come under scanner to catch tax evaders using third party bank accounts to hide their wealth while exchanging ₹2,000 notes, according to officials aware of the development, who said sudden large deposits in multiple Jan Dhan Yojana accounts may also be scrutinised. Banks have been instructed to report “suspicious” account transactions and tax authorities …

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 …

₹2,000 notes withdrawn: most city residents not bothered; a few peeved
1 year, 7 months ago

₹2,000 notes withdrawn: most city residents not bothered; a few peeved

The Hindu  

Residents of the Capital seem unaffected by the Reserve Bank of India’s decisions to pull out ₹2,000 notes from circulation, as many of them have not seen the currency in a while. Vijay Rajput, a grocery shop owner at Laxmi Nagar, said, “Small business owners like us don’t have ₹2,000 currency. People with big businesses and transactions in crores might …

Demonetisation in India in 10 stories: Understanding the Rs. 2000 ban
1 year, 7 months ago

Demonetisation in India in 10 stories: Understanding the Rs. 2000 ban

The Hindu  

Published : May 20, 2023 20:21 IST - 1 MIN READ The Reserve Bank of India made a significant announcement on May 19 regarding the withdrawal of the highest denomination currency note in circulation, the Rs 2,000 note. While reaffirming its status as legal tender, the central bank stated that existing Rs 2,000 notes could be deposited or exchanged in …

Withdrawal of ₹2,000 notes will have no perceptible effect on economy: Panagariya
1 year, 7 months ago

Withdrawal of ₹2,000 notes will have no perceptible effect on economy: Panagariya

The Hindu  

The RBI's decision to withdraw ₹2,000 currency notes from circulation will not have any 'perceptible effect' on the economy as any such notes returned will be replaced by either equivalent cash in lower denomination notes or a deposit, former NITI Aayog Vice Chairman Arvind Panagariya has said. Any currency in ₹2,000 notes returned will be replaced by either equivalent cash …

India announces surprise withdrawal of highest-value banknotes
1 year, 7 months ago

India announces surprise withdrawal of highest-value banknotes

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy India is withdrawing its highest …

₹2,000 banknotes withdrawal will help curb…: Ex RBI official
1 year, 7 months ago

₹2,000 banknotes withdrawal will help curb…: Ex RBI official

Live Mint  

Ex-Reserve Bank of India Deputy Governor R Gandhi has said that withdrawal of the ₹2,000 banknotes will help in curbing black money to a “great extent”, PTI reported. On Friday, the RBI announced the withdrawal of ₹2,000 currency notes from circulation, and existing notes in circulation can either be deposited in bank accounts or exchanged by September 30. The ₹2,000 …

RBI to withdraw ₹2000 currency note from circulation
1 year, 7 months ago

RBI to withdraw ₹2000 currency note from circulation

Hindustan Times  

The Reserve Bank of India on Friday withdrew ₹2,000 currency notes from circulation. The ₹2,000 denomination bank note was introduced in November 2016 after the Modi government had introduced demonetisation of ₹500 and ₹1,000 notes. As per RBI, the objective of introducing ₹2,000 notes was met once banknotes in other denominations became available in adequate quantities. The people may deposit …

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 …

Mint Explainer: What demonetization really achieved
2 years ago

Mint Explainer: What demonetization really achieved

Live Mint  

Let’s recall the lofty intentions behind demonetization. Still, cash retains its popularity despite the emergence of digital platforms, and for a simple reason – it offers anonymity in financial transactions, unlike digital transactions which leave a trail. Two factors may have contributed to the demonetization calculations going awry -- First, many Indians do not hoard black money in cash in …

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 …

From the India Today archives (2016) | Demonetisation 2016: Was it pain or gain?
2 years, 2 months ago

From the India Today archives (2016) | Demonetisation 2016: Was it pain or gain?

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 …

Six years since demonetisation, cash with public at record high of ₹30.88 lakh crore
2 years, 2 months ago

Six years since demonetisation, cash with public at record high of ₹30.88 lakh crore

The Hindu  

Currency with the public has jumped to a new high of ₹30.88 lakh crore as of October 21, illustrating that cash usage is still robust even six years after the demonetisation move. At ₹30.88 lakh crore, the currency with the public is 71.84% higher than the level for the fortnight ended November 4, 2016. As per the fortnightly data on …

2016: Demonetisation
2 years, 5 months ago

2016: Demonetisation

The Hindu  

Published : Aug 15, 2022 06:00 IST On the evening of November 8, 2016, even as families across India were getting ready to watch their favourite soaps, Prime Minister Narendra Modi appeared on television and announced that from midnight that day, all Rs.500 and Rs.1,000 notes would cease to be legal tender. He claimed that most black money was held …

RBI should keep watch of India’s cashless tryst
4 years, 2 months ago

RBI should keep watch of India’s cashless tryst

Live Mint  

Cash is not obsolete. After a long phase of beta testing, WhatsApp’s payment feature was given a go-ahead last week by the National Payments Corp of India. The Facebook-owned chat platform must keep users of its new service under 20 million for now, though it has an overall domestic user base of some 400 million, many of them riveted to …

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 …

ATMs starts dispensing more of ₹500 instead of ₹2,000
4 years, 10 months ago

ATMs starts dispensing more of ₹500 instead of ₹2,000

The Hindu  

Banks have started dispensing more of ₹500 notes instead of ₹2,000 denomination notes, a move seen as gradual phasing out of the high denomination currency. The Reserve Bank of India in an RTI response last year had said that the central bank had stopped printing ₹2,000 denomination currency notes. Although there has been no dictate from the Finance Ministry, banks …

Demonetization 3rd anniversary: How digital payments picked up post note ban
5 years, 2 months ago

Demonetization 3rd anniversary: How digital payments picked up post note ban

Live Mint  

The National Democratic Alliance government’s massive currency culling exercise three years ago has brought India’s payments system at an inflection point, where cash transactions continue to dominate. In a country which was primarily cash dependent, the pre-demonetisation period witnessed slow adoption of digital payments,” said Sampad Swain, chief executive officer and co-founder of payment gateway firm Instamojo. Similarly, fund transfer …

Three years since demonetisation, cash is back
5 years, 2 months ago

Three years since demonetisation, cash is back

The Hindu  

Three years since demonetisation, the level of cash with the public has grown faster than the GDP growth of the country, even as digital payments — especially those on the Unified Payments Interface platform — have seen robust growth. Demonetisation: a year later According to the RBI’s annual report, the number of UPI payments in 2018-19, at 535 crore, for …

₹2,000 notes in circulation fall
5 years, 4 months ago

₹2,000 notes in circulation fall

The Hindu  

The ₹2,000 currency notes introduced during the demonetisation exercise of 2016 have dropped in circulation in the last one year ended in March 2019. In value terms, the ₹2,000 notes’ share in total currency circulation was 37.3%. The number of pieces dropped to 3,291 million in the year ended March 2019, which was 3% in terms of volume and 31.2% …

Currency in circulation rises 22% in May over pre-demonetisation level
5 years, 6 months ago

Currency in circulation rises 22% in May over pre-demonetisation level

Live Mint  

Currency notes in circulation stood at ₹21.71 lakh crore at May-end 2019, showing an increase of more than 22% over the pre-demonetisation level. As per a written reply given by Finance Minister Nirmala Sitharaman in the Rajya Sabha Tuesday, the notes in circulation as on November 4, 2016 were ₹17,74,187 crore, which have now increased to ₹21,71,385 crore as on …

Cash deeply embedded in payment systems in India: RBI
5 years, 7 months ago

Cash deeply embedded in payment systems in India: RBI

India TV News  

Despite a large growth in digital payments after demonetisation of Rs 500 and Rs 1,000 notes in 2016, cash is "deeply embedded" in the payment system in India, according to a new report from the Reserve Bank of India. At 11.59 per cent of Gross Domestic Product India had a high cash in circulation in 2012, said the report titled …

Opinion | The slow suffocation of ATMs in the country
5 years, 7 months ago

Opinion | The slow suffocation of ATMs in the country

Live Mint  

Human memory is short, but a small trigger can revive painful episodes. According to the Reserve Bank of India, the number of ATMs across the country has shrunk over the past two years despite rising transactions done on these machines. A Bloomberg report published on Thursday in Mint refers to an International Monetary Fund chart for 2017 which shows that …

Why number of ATMs is going down in India?
5 years, 8 months ago

Why number of ATMs is going down in India?

Live Mint  

Finding an ATM in India is getting tougher even as dependence on cash persists, thanks to tighter regulations that make it more costly to run the machines. The number of automated teller machines in the country shrank in the past two years despite an increase in transactions, Reserve Bank of India figures showed Saturday. That risks undermining Prime Minister Narendra …

RBI stops printing Rs 2,000 notes; govt believes high denomination currency being used for hoarding, tax evasion
6 years ago

RBI stops printing Rs 2,000 notes; govt believes high denomination currency being used for hoarding, tax evasion

Firstpost  

The Rs 2,000 banknote is likely to be phased out from the circulation gradually The Reserve Bank of India has reportedly stopped printing Rs 2,000 currency notes as the government suspects the high denomination banknote was “being used for hoarding, tax evasion and money laundering,” a media report said. In December 2018, banker Uday Kotak had said that the outcome …

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 …

Don't judge demonetisation to soon: From grocery to high-value purchases, note ban has given a leg-up to digital money
6 years, 2 months ago

Don't judge demonetisation to soon: From grocery to high-value purchases, note ban has given a leg-up to digital money

Firstpost  

Demonetisation has provided a necessary nudge to affect a behavioural change in society in the way cash is being used On 8 November 2016, the world’s two largest democracies sat on the edge. However, if there is one sector where the impact of demonetisation is most palpable and visible in our immediate surroundings; it is electronic transactions, digital payments, and …

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 …

No ‘less cash’ two years post note ban
6 years, 2 months ago

No ‘less cash’ two years post note ban

The Hindu  

Thursday, November 8, marks the second anniversary of the demonetisation exercise. According to Reserve Bank of India data, currency in circulation rose to ₹19.6 lakh crore as on October 26, 2018, a 9.5% growth from two years ago. Money trail Currency in circulation increased to ₹19.6 lakh crore as on Oct. 26, 2018, from ₹17.9 lakh crore on Nov.4, 2016 …

From GDP growth to black money, costs outweigh benefits of demonetisation
6 years, 4 months ago

From GDP growth to black money, costs outweigh benefits of demonetisation

Live Mint  

New Delhi: According to the Reserve Bank of India’s annual report for 2017-18, 99.3% of the demonetised ₹ 500 and ₹ 1000 notes have been returned to the central bank. When it was announced in November 2016, demonetisation was proclaimed as a solution to India’s black money and counterfeit currency problems. In 2017-18, the number of counterfeit notes detected was …

Currency notes in circulation
6 years, 4 months ago

Currency notes in circulation

The Hindu  

Over 99% of devalued currency notes were returned within months of demonetisation, according to Reserve Bank of India's annual report 2017-18. There are 102,395 million bank notes of various denominations in circulation, amounting to a total value of ₹18,037 billion. The colour indicates the number of notes of that currency as a percentage of the total number of notes and …

Demonetisation comes to haunt govt as RBI says 99.3% notes back
6 years, 4 months ago

Demonetisation comes to haunt govt as RBI says 99.3% notes back

Live Mint  

Mumbai: The central bank’s post-mortem of the invalidation of high-value currencies in November 2016 is in: All but ₹ 10,720 crore of the ₹ 15.4 trillion is back in the banking system, indicating that the government’s shock move to deal a body blow to black money hasn’t worked as desired. “I think demonetization has achieved its objectives quite substantially,” said …

99.3% of demonetised currency returned: RBI
6 years, 4 months ago

99.3% of demonetised currency returned: RBI

The Hindu  

Over 99% of the ₹ 500 and ₹ 1000 that were withdrawn from circulation in November 2016 were returned, the Reserve Bank of India said in its annual report, released on Wednesday. According to the report, after verification and reconciliation, the total value of the ₹ 500 and ₹,1000 as on November 8, 2016, the day before note ban came …

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 …

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 …

Currency with public doubles from demonetisation days: Why did Narendra Modi’s big gamble fail to dethrone the cash king?
6 years, 7 months ago

Currency with public doubles from demonetisation days: Why did Narendra Modi’s big gamble fail to dethrone the cash king?

Firstpost  

Currency in Circulation totaled Rs 19.3 lakh crore as on 1 June. Remember, this figure had fallen to Rs 8.9 lakh crore in the aftermath of demonetisation, meaning the quantum has more than doubled since then. Suppose demonetisation never happened, and had the CIC grown at an average rate of 14 percent, the CIC in November 2017 would have been …

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