Demonetisation 3rd anniversary: Banning high-value notes failed to meet objectives, but digitisation may check black money generation
5 years, 2 months ago

Demonetisation 3rd anniversary: Banning high-value notes failed to meet objectives, but digitisation may check black money generation

Firstpost  

The defenders argued that demonetisation would help digitise the economy and make future black money generation difficult as there would be an audit trail all the time. This was the date when Prime Minister Narendra Modi announced that all Rs 500 and Rs 1000 notes would be demonetised and that we would be entering a new currency regime. However, the penchant for cash has not come down and the overall currency in circulation has reached Rs 22.31 lakh crore in October 2019 compared with Rs 17.64 lakh crore just before demonetisation. Curiously, the incremental currency during the period October 2018 and October 2019 was Rs 2.6 lakh crore which is comparable to the incremental currency one year before demonetisation.

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History of this topic

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 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 …

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 …

Two years after demonetisation, there are signs of a cleaner economy but where is the black money?
6 years, 2 months ago

Two years after demonetisation, there are signs of a cleaner economy but where is the black money?

Firstpost  

if data is provided on how many people have actually been caught with unaccounted money, it would be able to measure the success of the demonetisation part of the story. However, if data is provided on how many people have actually been caught with unaccounted money, it would be able to measure the success of the demonetisation part of the …

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 …

RBI says 99.3% of demonetised currency is back: What went wrong with the government's black money hunt
6 years, 4 months ago

RBI says 99.3% of demonetised currency is back: What went wrong with the government's black money hunt

Firstpost  

That 99.3 percent of about Rs 16 lakh crore in the form of the banned Rs 500 and Rs 1000 notes have found their way back into the banking system has given Prime Minister Narendra Modi’s detractors the stick to beat him with. Apart from neutralising terrorists’ funds suspected to be largely held in these two high denominations notes – …

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 …

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 …

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