Jump to content

Failed objectives: Six years after demonetisation, cash is still king, black money is very much around and counterfeit notes are on the rise


Kool_SRG

Recommended Posts

4 minutes ago, Vaampire said:

Implementation could have been much better. Lot of people who were working as cashiers in banks complained about the weird smells while counting the cash during those days. 
banking fees, limits on withdrawals and so many other things destroyed the purpose. 
 

good objective with failed implementation 

dude, you guys never learn. and the arrogance on top of it. pure assholes.

  • Haha 2
Link to comment
Share on other sites

1 minute ago, Raven_Rayes said:

dude, you guys never learn. and the arrogance on top of it. pure assholes.

anthe ga

good initiative, great intention ani pogidi

last ki failed execution due to govt employyes ano leka indian people don't deserve any toseyyadam

  • Haha 2
Link to comment
Share on other sites

6 minutes ago, Picheshwar said:

anthe ga

good initiative, great intention ani pogidi

last ki failed execution due to govt employyes ano leka indian people don't deserve any toseyyadam

paisa ki paniki raani advice ichey uncle lekka aypoyaaru appudey.

edhi emaina Hinduism in danger daanni kaapaadukovaalamma anedhi final.

Link to comment
Share on other sites

డిజిటల్ కరెన్సీ అయిపోతుంది అని నోట్ల రద్దు తెచ్చారు. దెబ్బకు లక్షలాది పరిశ్రమలు మూతబడ్డాయి. కోట్లాది మంది బతుకులు తారుమారు అయ్యింది.
వ్రతం చెడ్డా ఫలితం దక్కిందా అంటే..
కూరగాయలు కొనే చోటు నుండి చిన్నా చితకా కొనుగోళ్లకు గూగుల్ పేలు & ఫోన్ పేలు చేస్తున్నాం.
కానీ 2016లో 17.97 లక్షల కోట్ల కరెన్సీ నుండి 30.88 లక్షల కోట్ల కరెన్సీకి పెరిగింది.
అంటే ఈ 6 ఏళ్లలో 72% పెరిగింది.
నోట్ల రద్దు అనేది ఒక పెద్ద స్కాము అని ప్రతిపక్షాలు ఆరోపిస్తున్నాయి.
ఏది ఏమైనా.. రెండు వేల నోట్ల కాగితాలు జనానికి రాకముందు కట్టలు కట్టలు, తమిళనాడులో ఇసుక రెడ్డి దగ్గర దొరికితే, దక్షిణ భారతదేశం ఉలిక్కిపడింది.
కేసులు పెట్టి తేల్చింది ఏమంటే.. ఆ రెండు వేల నోట్లమీద నంబర్ సిరీస్ ఏ బ్యాంకుకు పంపారో కూడా ఆర్బీఐ దగ్గరే సమాచారం లేనందువల్లా, ఆ కేసు కథ కంచికి.
కట్ చేస్తే టిటిడి బోర్డులో పదవి ఇప్పించారు వైకాపాతో, రెండోసారి. అలాగుంటాయి బిజెపి పనులు.
ఏ ఒక్క పనైనా మేలు చేసిందా అంటే.. రోజు రోజుకూ రూపాయి విలువ నుండి అంతా అథోగతి. కానీ ఆ పార్టీ మునుగోడులో ఓటుకు 4000 పంచే స్థాయికి, 9 ప్రభుత్వాలను కూల్చగలిగే స్థాయికి ఎదిగింది. భారత్ మాతాకీ జై.
Link to comment
Share on other sites

49 minutes ago, Kool_SRG said:

The Modi government expected demonetisation to extinguish at least Rs 3-4 lakh crore of black money. However, RBI data show that 99% of the money that was invalidated came back into the banking system. Meanwhile, fresh seizures of black money continue.

Old_notes_Rupee_Banned_1000_500-770x417.

On November 8, 2016, Prime Minister Narendra Modi appeared on national television and said that all Rs 500 and Rs 1,000 banknotes would become invalid at the stroke of midnight. The announcement at 8 pm, aimed at flushing out black money—funds hidden from the taxman—led to nearly 86 percent of the currency in circulation becoming invalid four hours later.

Modi’s decision surprised some economists, who argued that only about 5 percent of back money is stashed in the form of currency. The remainder is in the form of other assets such as real estate and gold, they argued.

 

There were three economic objectives that were offered as the rationale behind demonetisation—wiping out black money, eradicating fake currency notes and creating a cashless economy by pushing digital transactions. Among those targets, the biggest one was tackling black money. Black money refers to cash that is not accounted for in the banking system or cash on which tax has not been paid to the state.

Six years after the demonetisation move, has India achieved any of the stated targets? Let us take a look with available data.

Black money hunt—a failure

Did demonetisation achieve the target of ending the killing black money economy? According to Reserve Bank of India (RBI) data, almost the entire chunk of money (more than 99 percent) that was invalidated came back into the banking system. Of the notes worth Rs 15.41 lakh crore that were invalidated, notes worth Rs 15.31 lakh crore returned.

How much black money has been recovered since the note-ban exercise? This is difficult to assess as there are no recent estimates of how much black money was recovered since demonetisation.

But in February 2019, then finance minister Piyush Goyal had told Parliament that Rs 1.3 lakh crore in black money had been recovered through various anti-black money measures, including demonetisation.

In his book I do what I do, former RBI governor Raghuram Rajan disclosed that he never supported the idea of a note ban and felt that the short-term impact of the exercise could outweigh the long-term gains.

 

Remember, the government had originally expected that at least Rs 3-4 lakh crore in black money would get extinguished outside the banking system due to demonetisation alone. Thus, data suggests that demonetisation was a failure in unearthing black money in the system. Meanwhile, instances of black money seizures continue.

In August this year, the Income-tax department said it detected black income of more than Rs 150 crore after it raided several business groups who run hospitals in Haryana and Delhi-NCR. Similarly, the department detected undisclosed income of more than Rs 250 crore during searches against two business groups involved in silk sarees trade and chit fund in Tamil Nadu. There are several such instances across the country.

Counterfeit notes on the rise

A second objective of the exercise, that of tackling forged banknotes, also seems to have come a cropper. Counterfeit Indian currency notes increased 10.7 percent in the financial year ended March, the Reserve Bank of India (RBI) said in its annual report released on May 27 . The central bank detected a 101.93 percent rise in fake notes of Rs 500 denomination, while fake notes of Rs 2,000 increased more than 54 percent.

The RBI report showed that there was an increase of 16.45 and 16.48 percent in counterfeit notes of Rs 10 and Rs 20, respectively in FY22. Fake Rs 200 notes rose 11.7 percent. Counterfeit notes detected in denominations of Rs 50 and Rs 100 declined 28.65 and 16.71 percent, respectively, the report showed. Of those, 6.9 percent were detected at the RBI with the rest 93.1 percent at other banks.

In 2016, the year when demonetisation was launched, 6.32 lakh counterfeit pieces were seized across the country. In the next four years, a total of 18.87 lakh fake notes were seized across the country in various denominations, according to RBI data.

Most fake currency notes seized in the post-demonetisation years were in the Rs 100 denomination—1.7 lakh pieces in 2019-20, 2.2 lakh in 2018-19 and 2.4 lakh pieces in 2017-18. Compared to previous years, there was an increase of 144.6 percent in fake Rs 10 notes, 28.7 percent in Rs 50 notes, 151.2 percent in Rs 200 notes and 37.5 percent in fake notes of Rs 500 [Mahatma Gandhi New Series] denomination, the RBI data showed.

Cash is king

Later, the creation of a cashless economy was pitched as another major target of demonetisation. How has this picked up? Cash has proved that it remains king in the post-note-ban years. As per RBI data, currency with the public increased to Rs30.88 lakh crore as on October 21, 2022, from Rs17.7 lakh crore on November 4, 2016.

At Rs 30.88 lakh crore, currency with the public is 71.84 percent higher than the level for the fortnight ended November 4, 2016.

Digital payments jump, though..

To be sure, digital payments have risen. According to RBI data, transactions through the Unified Payments Interface (UPI) touched a new high of Rs 12.11 lakh crore in October , six months after it crossed the Rs 10-lakh-crore milestone in May. In terms of volumes, UPI has hit a record of 730 crore transactions in October. In September, UPI transactions hit 678 crore in volume terms breaking the Rs 11-lakh-crore mark.

In the financial year 2022, around 71 billion digital payments were recorded across India. This was a significant increase compared to the previous three years. UPI recorded strong gains, both in numbers and in value, since 2015.

So, what is the takeaway here?

The biggest stated goals of demonetisation—eliminating black money, curbing fake currency and creating a cashless economy—are yet to be achieved. People still prefer to deal in cash to a large extent, even though there is an increase in digital transactions, the last largely driven by convenience and the surge in online transactions that was in turn driven by the COVID-19 pandemic and ensuing lockdowns. This perhaps indicates that digital channels would have picked up even without the highly disruptive economic move.

Debates still rage about whether the note ban was a prudent step in the Indian economic context. While there certainly has been a discernible uptick in digital payments, it is doubtful whether the elaborate exercise to unearth black money—the stated and primary goal of demonetisation—was worth it.

Its cycle, malli few years lo ban chestaru

Link to comment
Share on other sites

i am no supporter of BJP, but credit needs to be given when due and should point fingers when needed. i have been to india almost every 2 years, here is what i saw 

+ves 

- no one is using cash now, i almost never used cash.....and i live in big town. yes corruption is still big, its not easy to make changes to such big nation. but as long as we have more accounted money, we are moving towards a better society

- no more subsidies, but they using money to create better opportunities....example, railway ticket prices and better facilities when compares to last 5/10 years  

- National security, i dont have to explain 

- great logistical infrastructure 

 

-ves 

- i never saw a 2000 bill, corruption still at large 

- huge hate between Hiindu/Muslim communities 

  • Upvote 2
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...