5. The sudden move to demonetize Rs 500 and
RS1,000 currency notes is not new.
Rs 1,000 and higher denomination notes were
first demonetized in January 1946 and again in
January 1978.
6. The highest denomination note ever printed by
the Reserve Bank of India was the Rs 10,000 note
in 1938 but these notes were demonetized in
January 1946.
7.
8. Rs 500 note came into circulation in October 1987.
The Rs 1,000 note made a comeback in November
2000.
The move was then justified as an attempt to contain
the volume of banknotes in circulation due to
inflation.
13. On 28 October 2016 the total banknotes in
circulation in India was Rs17.77
trillion (US$260 billion).
In terms of value, the annual report of Reserve
Bank of India (RBI) of 31 March 2016 stated that
total bank notes in circulation valued to
Rs16.42 trillion (US$240 billion) of which nearly
86% (around Rs 14.18 trillion (US$210 billion))
were Rs 500 and Rs1,000 banknotes.
In terms of volume, the report stated that 24%
(around 22.03 billion) of the total 90266 million
banknotes were in circulation.
14.
15.
16.
17.
18.
19. 1% of the country’s people are paying tax
95% transactions in India are made using cash
Demonetization resulted in Rs 14 lakh crore of
Bank deposits.
the money that is coming into the system has
not become white.
Just because it is in the banking system does
not mean it is legitimate.
It will invite taxes and penalties if required
and will have deeper scrutiny.
20.
21.
22.
23. Transportation halts: After the demonetisation was
announced, about 800,000 truck drivers were affected
with scarcity of cash, with around 400,000 trucks
stranded at major highways across India were
reported.
Agriculture: Transactions in the Indian agriculture
sector are heavily dependent on cash and were
adversely affected by the demonetisation.
E-commerce companies saw up to a 30% decline
in cash on delivery (COD) orders.
24. SUPPORTERS:
MD & CEO of SBI AND ICICI
Businessmen : Anand Mahindra , Sajjan Jindal , Kunal Bhal ,
N. R. Narayana Murthy
International community: IMF, European commission,
China media, Singapore.
CRITICISM:
Chief Economist of the World Bank, Kaushik Basu,
Chief Ministers of several Indian states
Nobel laureates Indian economist Amartya Sen
Noted economist and journalist, T. N. Ninan
29. Digital India is a campaign launched on 1 July
2015 by the Government of India to ensure that
Government services are made available to
citizens electronically.
Digital India consists of three core components:
Creation of digital infrastructure
Delivery of services digitally
Digital Literacy
34. … Creating for everyone access to
appropriate financial services
For the Poor it means
… Creating access to affordable
banking and other financial services
FI is frontal attack on poverty.
35. Growth in agriculture is necessary :
to keep manufacturing prices under check
provide food security
keep inflation under control.
Price stability is not merely important as an anti
poverty measure but also as an instrument to ensure
stable and sustained growth.
In India, growth process is knowledge based and
service led, hence substantial requirement of skilled
labour.
36. Small and marginal farmers
Landless labourers, oral lessees
Self employed and unorganized sectors
enterprises
Urban slum dwellers, migrants, ethnic
minorities and socially excluded groups
Senior citizens , women , etc.
Poverty anywhere is a threat to prosperity
everywhere.
37. Physical access difficult: Remote hilly &
sparsely populated areas with inadequate
infrastructure
Demand Side: Lack of awareness, low income,
social exclusion, illiteracy
Supply side: distance from branch, branch
timings, cumbersome documents and
procedures,unsuitable products, language,
staff attitude, etc.
EFFECT: Higher transaction costs and
procedural hassles
38. Financial sector in India is dominated by the banking system.
Scheduled commercial banks (SCBs) account for three-fourths of the
total assets.
Public sector banks (PSBs) account for 70 per cent of the total assets
of SCBs
Developments relating to public policy objectives underlying banking
policy took place in two distinct phases :
The 1st
phase viz. the two decades since 1970 –
the period of State control
Average population per branch decreased from 64,000 to 16,000
Credit cum subsidy programmes sponsored by the government taken up for
financial inclusion for the poor.
2nd
phase
SHG Bank linkage programme by NABARD
Creation of RIDF(Rural Infrastructure Development Fund)