Demonetization is not a new phenomenon. It was tried by many countries before the recently done in India on Nov 2016. Although it wasn't successful in most of the countries, but economists believe it resets the black economy. Read more on Groww.in
impact on demonetisation on indian economy vicky sharma
Demonetization of Rs. 500 and Rs. 1000 currency notes aimed to tackle black money, fake currency, and corruption in India. The objective of this study was to analyze the impact of demonetization on the Indian economy. Some impacts included a reduction in black money and terror funding, a correction in the overheating real estate market, and increased adoption of digital payments. In the short-term, demonetization led to temporary chaos, a decline in consumption, and welfare loss. However, in the long run it may reduce counterfeit currency and corruption in India.
This document discusses India's demonetization of 500 and 1000 rupee banknotes in November 2016. It provides background on demonetization, the rationale given by Prime Minister Modi for India's action including fighting corruption and black money. The short-term impacts included cash shortages, economic disruption and job losses. However, proponents argue it will boost formal economic activity and tax collection over the long run. The document also reviews demonetization efforts in other countries and debates the policy's costs and benefits.
Demonetization : The Real Effects, Flashback #DeMo 2016, Reasons for Demonetization, Percentage share of denominations before Demonetization, Purpose/Need for Demonetization, Pros & Cons of Demonetization, Benefits of Demonetization (Direct & Indirect), Impact of Demonetization (Short & Long Term), Effect of Demonetization on Indian Economy, Hidden Facts, Reaction on Social Media, Survey @ Local Circle, Impact on Economy – Sector wise, Through the Glasses of Pessimism, Reality Check (example of effect of demonetization), Conclusion.
This document summarizes information about demonetization in India in 2016. It provides background on demonetization, details of Prime Minister Modi's announcement to demonetize Rs. 500 and Rs. 1000 banknotes, reactions and protests, impacts both positive and negative, and statistics on the amount of money deposited. Key reasons for demonetization in India included fighting corruption, counterfeiting, and moving towards a digital economy and cashless society.
What is demonatisation . When was it annouced and what is the impact of demonatisation on indian economy and much more.
Explaining the point which leads to the impact of demonatisation.
This document discusses the reasons for and impacts of India's demonetization that took place in November 2016. It aimed to reduce corruption through lowering tax evasion, reducing black money, terrorist funding, and fake currency. Statistics show that Rs. 15.44 lakh crore worth of Rs. 500 and Rs. 1000 notes were in circulation, forming 86% of total currency. As of December 9th, 80% of these had been deposited. Digital payments increased substantially in the aftermath. While cash transactions face issues like enabling parallel economies and corruption, digitization increases transparency but reduces privacy. The move impacts small businesses and various sectors of the Indian economy.
A SHORT AND GENERAL PPT COVERING ASPECTS LIKE REACTIONS OF PEOPLE,IMPACTS OF DEMONETISATION:POSITIVE AND NEGATIVE,EFFECTS ON 3 SECTORS AND EFFECT ON THE INDIAN ECONOMY. ALL THE BEST!!!!!
Demonetization has severely impacted India's agricultural sector, which relies heavily on cash transactions and accounts for nearly half of India's workforce. The removal of high-value currency notes invalidated 86% of India's cash, disrupting farmers' ability to purchase seeds, fertilizers, and other supplies due to lack of funds. While short-term effects included reduced crop sowing and prices crashing as produce rotted, long-term impacts may include investment in agriculture through recovery of black money, lower interest rates, and improved irrigation. However, rural farmers distant from banks face significant difficulties unless solutions reach them.
impact on demonetisation on indian economy vicky sharma
Demonetization of Rs. 500 and Rs. 1000 currency notes aimed to tackle black money, fake currency, and corruption in India. The objective of this study was to analyze the impact of demonetization on the Indian economy. Some impacts included a reduction in black money and terror funding, a correction in the overheating real estate market, and increased adoption of digital payments. In the short-term, demonetization led to temporary chaos, a decline in consumption, and welfare loss. However, in the long run it may reduce counterfeit currency and corruption in India.
This document discusses India's demonetization of 500 and 1000 rupee banknotes in November 2016. It provides background on demonetization, the rationale given by Prime Minister Modi for India's action including fighting corruption and black money. The short-term impacts included cash shortages, economic disruption and job losses. However, proponents argue it will boost formal economic activity and tax collection over the long run. The document also reviews demonetization efforts in other countries and debates the policy's costs and benefits.
Demonetization : The Real Effects, Flashback #DeMo 2016, Reasons for Demonetization, Percentage share of denominations before Demonetization, Purpose/Need for Demonetization, Pros & Cons of Demonetization, Benefits of Demonetization (Direct & Indirect), Impact of Demonetization (Short & Long Term), Effect of Demonetization on Indian Economy, Hidden Facts, Reaction on Social Media, Survey @ Local Circle, Impact on Economy – Sector wise, Through the Glasses of Pessimism, Reality Check (example of effect of demonetization), Conclusion.
This document summarizes information about demonetization in India in 2016. It provides background on demonetization, details of Prime Minister Modi's announcement to demonetize Rs. 500 and Rs. 1000 banknotes, reactions and protests, impacts both positive and negative, and statistics on the amount of money deposited. Key reasons for demonetization in India included fighting corruption, counterfeiting, and moving towards a digital economy and cashless society.
What is demonatisation . When was it annouced and what is the impact of demonatisation on indian economy and much more.
Explaining the point which leads to the impact of demonatisation.
This document discusses the reasons for and impacts of India's demonetization that took place in November 2016. It aimed to reduce corruption through lowering tax evasion, reducing black money, terrorist funding, and fake currency. Statistics show that Rs. 15.44 lakh crore worth of Rs. 500 and Rs. 1000 notes were in circulation, forming 86% of total currency. As of December 9th, 80% of these had been deposited. Digital payments increased substantially in the aftermath. While cash transactions face issues like enabling parallel economies and corruption, digitization increases transparency but reduces privacy. The move impacts small businesses and various sectors of the Indian economy.
A SHORT AND GENERAL PPT COVERING ASPECTS LIKE REACTIONS OF PEOPLE,IMPACTS OF DEMONETISATION:POSITIVE AND NEGATIVE,EFFECTS ON 3 SECTORS AND EFFECT ON THE INDIAN ECONOMY. ALL THE BEST!!!!!
Demonetization has severely impacted India's agricultural sector, which relies heavily on cash transactions and accounts for nearly half of India's workforce. The removal of high-value currency notes invalidated 86% of India's cash, disrupting farmers' ability to purchase seeds, fertilizers, and other supplies due to lack of funds. While short-term effects included reduced crop sowing and prices crashing as produce rotted, long-term impacts may include investment in agriculture through recovery of black money, lower interest rates, and improved irrigation. However, rural farmers distant from banks face significant difficulties unless solutions reach them.
This document discusses the impact of India's 2016 demonetization on the agricultural sector. It defines demonetization and outlines its objectives, including eliminating black money. It then discusses the history of demonetization in India and includes images of newspaper clippings from previous demonetizations. The document analyzes both the short-term and long-term impacts, noting farmers initially faced difficulties due to a lack of cash but that demonetization may eventually lead to increased investment in agriculture and lower interest rates. Overall, the document examines how India's effort to curb black money through demonetization affected the country's farming community.
Demonitisation and its effect on indian economyArijeet Dutta
Demonetization refers to the Indian government's decision on November 8, 2016 to remove Rs 500 and Rs 1000 banknotes from circulation. This was done to curb black money, corruption, and counterfeit currency. It has led to short-term hardship as over 85% of currency was removed overnight. However, it is expected to have long-term positive impacts by reducing black money, corruption, and use of fake currency to fund illegal activities. While some sectors face liquidity issues in the short-run, in the long-run it may lead to greater financial inclusion, reduced inflation, lower interest rates, and increased tax revenues as more money enters the formal economy. Economists believe that after initial disruptions, demon
Demonetization negatively impacted many vendors in India. Due to the removal of Rs. 500 and Rs. 1000 notes, 50% of vendors did not have bank accounts and 30% only had accounts in their home towns, making exchanging the old notes difficult. While some opened accounts through a government program, 80% of vendors preferred saving cash at home rather than depositing in banks. A majority (50-85%) of vendors faced difficulties withdrawing money from ATMs and using digital payments. The demonetization motivated increased cashless transactions long-term but created significant problems for many unorganized sector workers in the short-term.
Demonetization has been a bold step of our present Government. The real result of it on our nation will be seen in coming year. But here is my study on immediate effects of demonetization on various sectors. I hope it helps..
Powerpoint Presentation on Demonetisation (1)shenagarg44
On 8th November 2016, government announced Demonetisation of all 500 and 1000 rupees bank notes of the Mahatma Gandhi Series.
It also announced the issuance of new 500 and 2000 rupees banknotes.
Study on impact of demonetization on various sectors by Sachin BhuraseSachin Bhurase
This document provides a project report on the impact of demonetization on various sectors in India. It discusses the objectives and background of the study, including historical examples of demonetization in India. It then analyzes the impact of the 2016 demonetization on specific sectors like automobiles, consumption, and others. For each sector, it outlines the pros and cons, such as automobiles seeing short term impacts due to purchase deferment but demand reviving in the medium term, while two wheelers saw a high negative impact due to their reliance on cash transactions in rural areas.
Demonetisation and it’s effect on the agricutural sector OKEKE chizoba
This presentation discusses the impact of India's 2016 demonetization on the agricultural sector. Demonetization involves removing a currency unit's legal tender status and replacing it with a new currency. India demonetized high-value bills to curb black money, corruption, and counterfeiting. Agriculture is a major part of India's economy and relies heavily on cash transactions. Demonetization disrupted agricultural growth and sales as farmers faced cash shortages. It led to produce being sold below cost and delays in winter crop planting. While demonetization recovered large sums of unaccounted money, it may not fully address the root causes of black money flows unless new monitoring mechanisms are introduced.
Definition of Demonetisation, introduction, process to exchange demonetized currency notes, exceptions for withdrawal, reasons behind demonetisation. why demonetisation become masterstroke by PM Modi, evasion attempts after demonetisation, positive and negative effects, results and conclusion on Demonetisation.
impact of demonetization.Shivanandppt.pptx1803simsShivanand Rai
Demonetization initially disrupted rural agricultural markets in India due to a cash shortage. However, informal credit systems between farmers and retailers helped minimize the crisis. The government also took measures like allowing farmers to purchase seeds with old notes. As a result, demonetization had little impact on Rabi crop sowing and production. While cash transactions have largely returned to normal, suggestions are made to further promote digitization in rural areas through incentives to encourage cashless payments long-term.
This document discusses the effects of India's 2016 demonetization initiative. It begins with an overview and definitions of demonetization. It then discusses the historical precedents of demonetization in other countries. The document outlines the reasons given by the Indian government for demonetization, including reducing black money, fake currency, and pushing for digital transactions. It notes both positive impacts like increased tax collections but also pitfalls like unpreparedness and negative effects on small businesses and jobs. It questions whether demonetization actually achieved its goals of curbing black money and corruption.
The document provides an introduction and overview of demonetization in India. It discusses the history of demonetization in India, including instances in 1946, 1978, and most recently in 2016 when the government demonetized Rs. 500 and Rs. 1000 currency notes. It outlines the objectives and relevance of studying the impact of demonetization on the Indian economy. The scope of the study includes analyzing short to medium term effects on various sectors such as agriculture, automobiles, real estate, aviation, travel, banking, consumer durables, and healthcare. It concludes with a brief discussion of reviewing related literature.
The document discusses the history and rationale behind demonetization and the move towards a cashless economy in India. It notes that high-value banknotes like Rs. 500 and Rs. 1000 had increased disproportionately compared to economic growth, and were being used for illicit purposes like money laundering and tax evasion. Demonetization aimed to curb the circulation of such notes and black money. While it had short-term costs, benefits included reducing fake currency, terror funding and inflation. The government also aims to promote digital and cashless transactions through initiatives like Digital India, Aadhaar and the Unified Payments Interface to improve governance and service delivery.
This article is about the 2016 decision to demonetise 500- and 1000-rupee banknotes. It is not to be confused with The High Denomination Bank Notes (Demonetisation) Act, 1978.
Under the legal system, there is a division of legal tender which includes forms of currency. Demonetization plays a role here by removing a form of legal tender from circulation. Demonetizing high value banknotes aims to curb black money, corruption, counterfeiting, and terrorist activities that use unaccounted cash. While causing short term economic disruptions, demonetization may help boost the formal economy over the long run by reducing the shadow economy and increasing tax revenues. Both positive and negative impacts are discussed along with short term costs and long term benefits to the economy and fight against corruption.
Presentation on Demonetization in India Priyanshu7078
this file is uploaded by Pramod Kumar from MIMT
this file is made on the situations of the demonetization. in this file describing in details of related to the demonetization
The document discusses how demonetization affected the marketing strategies of e-wallets in India. It notes that post-demonetization, e-wallet companies aggressively expanded their user base through increased advertising, educating consumers on cashless payments, and tapping non-internet users. Their marketing budgets increased substantially. Paytm saw a large growth in transactions and new merchants signing up each day. Mobikwik added over 1.5 lakh new merchants and saw transaction volume growth of over 7,000%. Demonetization drove unprecedented growth for digital payment companies in India by making their services a necessity.
The Indian government announced the demonetization of Rs. 500 and Rs. 1000 banknotes on November 8th, 2016. This accounted for 86% of cash in circulation. The move aimed to combat corruption, black money, counterfeiting, and move India towards a cashless economy. It caused immediate chaos as people rushed to banks to deposit or exchange their notes. In the long run, the government believes demonetization will formalize the economy and increase tax revenues. While some experts say it may lower GDP temporarily due to reduced consumption, the government expects benefits like reduced inflation, lower interest rates, and an improved fiscal situation.
The document discusses India's demonetization of 500 and 1000 rupee notes in November 2016. It provides background on previous demonetizations in India in 1946 and 1978. The goals of the 2016 policy were reducing black money, counterfeiting, and moving toward a cashless economy. The short-term cons included bank lines and cash shortages, while the long-term pros were expected to be greater transparency, reduced corruption, and a more digitized economy. The impact on money supply and demand in different sectors is discussed. Overall the advantages of demonetization are seen as outweighing the short-term difficulties.
This document discusses the impact of India's 2016 demonetization on the agricultural sector. It defines demonetization and outlines its objectives, including eliminating black money. It then discusses the history of demonetization in India and includes images of newspaper clippings from previous demonetizations. The document analyzes both the short-term and long-term impacts, noting farmers initially faced difficulties due to a lack of cash but that demonetization may eventually lead to increased investment in agriculture and lower interest rates. Overall, the document examines how India's effort to curb black money through demonetization affected the country's farming community.
Demonitisation and its effect on indian economyArijeet Dutta
Demonetization refers to the Indian government's decision on November 8, 2016 to remove Rs 500 and Rs 1000 banknotes from circulation. This was done to curb black money, corruption, and counterfeit currency. It has led to short-term hardship as over 85% of currency was removed overnight. However, it is expected to have long-term positive impacts by reducing black money, corruption, and use of fake currency to fund illegal activities. While some sectors face liquidity issues in the short-run, in the long-run it may lead to greater financial inclusion, reduced inflation, lower interest rates, and increased tax revenues as more money enters the formal economy. Economists believe that after initial disruptions, demon
Demonetization negatively impacted many vendors in India. Due to the removal of Rs. 500 and Rs. 1000 notes, 50% of vendors did not have bank accounts and 30% only had accounts in their home towns, making exchanging the old notes difficult. While some opened accounts through a government program, 80% of vendors preferred saving cash at home rather than depositing in banks. A majority (50-85%) of vendors faced difficulties withdrawing money from ATMs and using digital payments. The demonetization motivated increased cashless transactions long-term but created significant problems for many unorganized sector workers in the short-term.
Demonetization has been a bold step of our present Government. The real result of it on our nation will be seen in coming year. But here is my study on immediate effects of demonetization on various sectors. I hope it helps..
Powerpoint Presentation on Demonetisation (1)shenagarg44
On 8th November 2016, government announced Demonetisation of all 500 and 1000 rupees bank notes of the Mahatma Gandhi Series.
It also announced the issuance of new 500 and 2000 rupees banknotes.
Study on impact of demonetization on various sectors by Sachin BhuraseSachin Bhurase
This document provides a project report on the impact of demonetization on various sectors in India. It discusses the objectives and background of the study, including historical examples of demonetization in India. It then analyzes the impact of the 2016 demonetization on specific sectors like automobiles, consumption, and others. For each sector, it outlines the pros and cons, such as automobiles seeing short term impacts due to purchase deferment but demand reviving in the medium term, while two wheelers saw a high negative impact due to their reliance on cash transactions in rural areas.
Demonetisation and it’s effect on the agricutural sector OKEKE chizoba
This presentation discusses the impact of India's 2016 demonetization on the agricultural sector. Demonetization involves removing a currency unit's legal tender status and replacing it with a new currency. India demonetized high-value bills to curb black money, corruption, and counterfeiting. Agriculture is a major part of India's economy and relies heavily on cash transactions. Demonetization disrupted agricultural growth and sales as farmers faced cash shortages. It led to produce being sold below cost and delays in winter crop planting. While demonetization recovered large sums of unaccounted money, it may not fully address the root causes of black money flows unless new monitoring mechanisms are introduced.
Definition of Demonetisation, introduction, process to exchange demonetized currency notes, exceptions for withdrawal, reasons behind demonetisation. why demonetisation become masterstroke by PM Modi, evasion attempts after demonetisation, positive and negative effects, results and conclusion on Demonetisation.
impact of demonetization.Shivanandppt.pptx1803simsShivanand Rai
Demonetization initially disrupted rural agricultural markets in India due to a cash shortage. However, informal credit systems between farmers and retailers helped minimize the crisis. The government also took measures like allowing farmers to purchase seeds with old notes. As a result, demonetization had little impact on Rabi crop sowing and production. While cash transactions have largely returned to normal, suggestions are made to further promote digitization in rural areas through incentives to encourage cashless payments long-term.
This document discusses the effects of India's 2016 demonetization initiative. It begins with an overview and definitions of demonetization. It then discusses the historical precedents of demonetization in other countries. The document outlines the reasons given by the Indian government for demonetization, including reducing black money, fake currency, and pushing for digital transactions. It notes both positive impacts like increased tax collections but also pitfalls like unpreparedness and negative effects on small businesses and jobs. It questions whether demonetization actually achieved its goals of curbing black money and corruption.
The document provides an introduction and overview of demonetization in India. It discusses the history of demonetization in India, including instances in 1946, 1978, and most recently in 2016 when the government demonetized Rs. 500 and Rs. 1000 currency notes. It outlines the objectives and relevance of studying the impact of demonetization on the Indian economy. The scope of the study includes analyzing short to medium term effects on various sectors such as agriculture, automobiles, real estate, aviation, travel, banking, consumer durables, and healthcare. It concludes with a brief discussion of reviewing related literature.
The document discusses the history and rationale behind demonetization and the move towards a cashless economy in India. It notes that high-value banknotes like Rs. 500 and Rs. 1000 had increased disproportionately compared to economic growth, and were being used for illicit purposes like money laundering and tax evasion. Demonetization aimed to curb the circulation of such notes and black money. While it had short-term costs, benefits included reducing fake currency, terror funding and inflation. The government also aims to promote digital and cashless transactions through initiatives like Digital India, Aadhaar and the Unified Payments Interface to improve governance and service delivery.
This article is about the 2016 decision to demonetise 500- and 1000-rupee banknotes. It is not to be confused with The High Denomination Bank Notes (Demonetisation) Act, 1978.
Under the legal system, there is a division of legal tender which includes forms of currency. Demonetization plays a role here by removing a form of legal tender from circulation. Demonetizing high value banknotes aims to curb black money, corruption, counterfeiting, and terrorist activities that use unaccounted cash. While causing short term economic disruptions, demonetization may help boost the formal economy over the long run by reducing the shadow economy and increasing tax revenues. Both positive and negative impacts are discussed along with short term costs and long term benefits to the economy and fight against corruption.
Presentation on Demonetization in India Priyanshu7078
this file is uploaded by Pramod Kumar from MIMT
this file is made on the situations of the demonetization. in this file describing in details of related to the demonetization
The document discusses how demonetization affected the marketing strategies of e-wallets in India. It notes that post-demonetization, e-wallet companies aggressively expanded their user base through increased advertising, educating consumers on cashless payments, and tapping non-internet users. Their marketing budgets increased substantially. Paytm saw a large growth in transactions and new merchants signing up each day. Mobikwik added over 1.5 lakh new merchants and saw transaction volume growth of over 7,000%. Demonetization drove unprecedented growth for digital payment companies in India by making their services a necessity.
The Indian government announced the demonetization of Rs. 500 and Rs. 1000 banknotes on November 8th, 2016. This accounted for 86% of cash in circulation. The move aimed to combat corruption, black money, counterfeiting, and move India towards a cashless economy. It caused immediate chaos as people rushed to banks to deposit or exchange their notes. In the long run, the government believes demonetization will formalize the economy and increase tax revenues. While some experts say it may lower GDP temporarily due to reduced consumption, the government expects benefits like reduced inflation, lower interest rates, and an improved fiscal situation.
The document discusses India's demonetization of 500 and 1000 rupee notes in November 2016. It provides background on previous demonetizations in India in 1946 and 1978. The goals of the 2016 policy were reducing black money, counterfeiting, and moving toward a cashless economy. The short-term cons included bank lines and cash shortages, while the long-term pros were expected to be greater transparency, reduced corruption, and a more digitized economy. The impact on money supply and demand in different sectors is discussed. Overall the advantages of demonetization are seen as outweighing the short-term difficulties.
Demonetization in India withdrew ₹500 and ₹1000 currency notes from circulation in November 2016 to curb black money, corruption, and terrorism financing. It led to short term negative impacts like cash short
Demonetization is the act of stripping a currency unit of its legal tender status. In India, PM Modi announced on November 8, 2016 that Rs. 500 and Rs. 1000 notes would no longer be legal tender, aiming to tackle black money, corruption, and terror financing. While demonetization may curb black money and corruption in the long run, it has led to short-term economic slowdown and significant inconvenience to the public due to cash shortages and long lines at banks. Whether the costs of demonetization outweigh its benefits remains to be seen.
This document summarizes the demonetization that occurred in India in November 2016 when the government withdrew the Rs. 500 and Rs. 1000 banknotes from circulation. It provides background on demonetization, explaining that it is done when a country changes its currency. It then details the announcement by Prime Minister Modi on November 8th, 2016 to remove the two banknotes by midnight and introduce new Rs. 500 and Rs. 2000 notes. The document also lists some common causes of demonetization like introducing new currency, and discusses the positive impacts like reducing black money and corruption, as well as some negative short term impacts like cash shortages and price increases.
The document provides a history of Indian currency and an overview of demonetization in India. It discusses how the Rs 500 and Rs 1000 notes were banned on November 8, 2016 in an effort to curb black money, counterfeit currency, and terrorist financing. It outlines both the goals and criticisms of the demonetization policy, including incomplete planning, cash shortages, economic slowdowns, and mixed public reactions. The presentation concludes by discussing how demonetization can promote Prime Minister Modi's "Digital India" and cashless economy initiatives.
Demonetization refers to replacing existing currency with new currency. In India, on November 8, 2016 the government demonetized Rs. 500 and Rs. 1000 banknotes, removing them from circulation. The key purposes of demonetization are to curb black money, counterfeit currency, and terror funding. It aims to make the economy more digitized and less cash-based. However, demonetization also had short-term negative effects like cash shortages, job losses, reduced consumption, and hardship for rural citizens dependent on cash transactions.
On November 8, 2016 the Indian government announced that Rs. 500 and Rs. 1000 banknotes would no longer be legal tender. This process of withdrawing currency from circulation is known as demonetization. India has previously demonetized its currency in 1946 and 1978 to curb black money. The government's stated goals of the 2016 demonetization were to fight corruption, black money, fake currency, and move toward a cashless society. However, short-term drawbacks included overcrowding at banks as people exchanged their old notes and a shortage of available cash for citizens. Overall the advantages of demonetization are seen as outweighing the disadvantages in the long run.
Demonetization - Impact on the Indian Financial MarketKeshin Pandit
The document summarizes a student project report on the impact of India's 2016 demonetization on its financial market. The report analyzes secondary data from the government and financial institutions to study how demonetization affected areas like the money market, stock market, banks, insurance, and more. The student found that while short-term impacts on citizens were significant, demonetization ultimately achieved the government's goals of reducing black money and increasing digital transactions.
The document summarizes the positive and negative impacts of India's recent demonetization in 3 sentences:
Positive impacts included reducing black money, corruption, and cash transactions, but negative impacts were chaos as people waited in long lines to exchange currency, some deaths occurred, and sectors like agriculture, small businesses and the real estate industry were adversely affected due to lack of cash. A parliamentary report found that demonetization led to a 1% drop in India's GDP.
Demonetisation and its impact on indian economySupriya Sharma
Demonetization in India involved removing Rs. 500 and Rs. 1000 currency notes from circulation in November 2016. This was aimed at curbing black money, corruption, terrorism funding, and moving toward a cashless economy. While nearly all demonetized notes were deposited, indicating the failure to remove significant black money, demonetization did increase digitization of the economy. However, it also caused short-term problems like bank lines and cash shortages. Overall, the long-term benefits of a less cash-dependent, more transparent economy are believed to outweigh the short-term costs.
The document summarizes India's recent demonetization of Rs. 500 and Rs. 1000 currency notes on November 8th, 2016. It explains that these high-value notes will no longer be legal tender, except in specified organizations, and must be deposited or exchanged at banks by December 30th. It provides background on previous demonetizations in India in 1946 and 1978. While there will be short-term economic costs, the long-term benefits of reducing black money, corruption, and moving towards a cashless economy outweigh the disadvantages. The government needs to ensure a smooth transition.
The document discusses demonetization in India. It defines demonetization as when a country's currency is no longer legal tender. In 2016, India demonetized its 500- and 1000-rupee notes to curb black money. This was not the first time India demonetized - it also did so in 1946 and 1978. The goals of demonetization were to counter black money, counterfeiting, and terrorist financing, while formalizing the economy and reducing cash. However, demonetization also had disadvantages like economic slowdown and problems for citizens and low-income groups.
In present the world is experiencing rapid and increasing use of digital methods of recording, managing and exchanging money in all transactions. With the revolution of Smartphone’s it gives new way to digitalization. It led the society to the emergence of E-commerce, Mcommerce and other services including app-based cab aggregators, who encourage digital payments for use of various services in digitalized form. These major changes in technology space will not only bring changes to economic system but make a revolution to change habit of Indian citizens to adopt digitalization. To support these changes for becoming digital the digital India programme became a flagship programme of government of India with a vision to transform India into a digitally empowered India and gave knowledge of “faceless, paperless and cashless” economy to the Indian society.
This document discusses India's demonetization that occurred in 2016 when the government withdrew the Rs 500 and Rs 1000 currency notes from circulation. It provides background on what demonetization is and the history of it in India. The objectives of the 2016 demonetization are described as targeting black money, corruption, terrorism financing. The impacts of demonetization on various sectors of the economy are discussed such as agriculture, banking, real estate, tourism, education, and healthcare. Challenges of the demonetization process and its effects in rural areas are also summarized.
All the information related to the Demonetization takes place in India.That presentation will help you for related ides about demonetization.When you refer the presentation your ideas will be clear.
Demonetization refers to the act of removing a currency unit's status as legal tender. In November 2016, India demonetized its 500 and 1000 rupee notes to curb black money and corruption. The document discusses the positive and negative effects of demonetization on the Indian economy, including short-term economic disruption and a reduction in terrorist funding through cash holdings. It also examines the ongoing impacts, such as a push towards digital and cashless transactions as well as deaths attributed to demonetization's implementation challenges.
Demonetization in India has both positive and negative impacts. In November 2016, Prime Minister Modi announced that Rs. 500 and Rs. 1000 notes would be invalid in an effort to curb black money, fake currency, and terrorist financing. The move aimed to promote a cashless economy but led to cash shortages and economic disruptions in the short-term. While it hurt illegal activities like Maoism and Hawala transactions, it also caused hardships for citizens and saw a temporary drop in GDP. Overall, proponents believe demonetization will have long-term benefits for the economy, but critics argue it was poorly planned and executed.
The document summarizes India's demonetization of 500 and 1000 rupee banknotes in 2016. It describes how the move was aimed at curbing black money, counterfeit currency, and terrorist financing. It discusses how the policy resulted in billions being deposited in banks, disrupted hawala transactions and cash flows to separatists and insurgents, and is expected to have economic benefits despite short-term inconveniences and impacts on small businesses and cash-dependent workers. However, it notes the move may not affect those with large stashes of black money stored abroad or in assets like gold.
Madhya Pradesh, the "Heart of India," boasts a rich tapestry of culture and heritage, from ancient dynasties to modern developments. Explore its land records, historical landmarks, and vibrant traditions. From agricultural expanses to urban growth, Madhya Pradesh offers a unique blend of the ancient and modern.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
Every business, big or small, deals with outgoing payments. Whether it’s to suppliers for inventory, to employees for salaries, or to vendors for services rendered, keeping track of these expenses is crucial. This is where payment vouchers come in – the unsung heroes of the accounting world.
Confirmation of Payee (CoP) is a vital security measure adopted by financial institutions and payment service providers. Its core purpose is to confirm that the recipient’s name matches the information provided by the sender during a banking transaction, ensuring that funds are transferred to the correct payment account.
Confirmation of Payee was built to tackle the increasing numbers of APP Fraud and in the landscape of UK banking, the spectre of APP fraud looms large. In 2022, over £1.2 billion was stolen by fraudsters through authorised and unauthorised fraud, equivalent to more than £2,300 every minute. This statistic emphasises the urgent need for robust security measures like CoP. While over £1.2 billion was stolen through fraud in 2022, there was an eight per cent reduction compared to 2021 which highlights the positive outcomes obtained from the implementation of Confirmation of Payee. The number of fraud cases across the UK also decreased by four per cent to nearly three million cases during the same period; latest statistics from UK Finance.
In essence, Confirmation of Payee plays a pivotal role in digital banking, guaranteeing the flawless execution of banking transactions. It stands as a guardian against fraud and misallocation, demonstrating the commitment of financial institutions to safeguard their clients’ assets. The next time you engage in a banking transaction, remember the invaluable role of CoP in ensuring the security of your financial interests.
For more details, you can visit https://technoxander.com.
Mutual Fund Taxation – How Mutual Funds Are Taxeddhvikdiva
Divadhvik explains Mutual Fund Taxation clearly: Equity funds held over a year are taxed at 10% for gains over ₹1 lakh, while short-term gains are taxed at 15%. Debt funds held over three years are taxed at 20% post-indexation. Short-term gains are taxed as per your income slab.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
The Rise and Fall of Ponzi Schemes in America.pptxDiana Rose
Ponzi schemes, a notorious form of financial fraud, have plagued America’s investment landscape for decades. Named after Charles Ponzi, who orchestrated one of the most infamous schemes in the early 20th century, these fraudulent operations promise high returns with little or no risk, only to collapse and leave investors with significant losses. This article explores the nature of Ponzi schemes, notable cases in American history, their impact on victims, and measures to prevent falling prey to such scams.
Understanding Ponzi Schemes
A Ponzi scheme is an investment scam where returns are paid to earlier investors using the capital from newer investors, rather than from legitimate profit earned. The scheme relies on a constant influx of new investments to continue paying the promised returns. Eventually, when the flow of new money slows down or stops, the scheme collapses, leaving the majority of investors with substantial financial losses.
Historical Context: Charles Ponzi and His Legacy
Charles Ponzi is the namesake of this deceptive practice. In the 1920s, Ponzi promised investors in Boston a 50% return within 45 days or 100% return in 90 days through arbitrage of international reply coupons. Initially, he paid returns as promised, not from profits, but from the investments of new participants. When his scheme unraveled, it resulted in losses exceeding $20 million (equivalent to about $270 million today).
Notable American Ponzi Schemes
1. Bernie Madoff: Perhaps the most notorious Ponzi scheme in recent history, Bernie Madoff’s fraud involved $65 billion. Madoff, a well-respected figure in the financial industry, promised steady, high returns through a secretive investment strategy. His scheme lasted for decades before collapsing in 2008, devastating thousands of investors, including individuals, charities, and institutional clients.
2. Allen Stanford: Through his company, Stanford Financial Group, Allen Stanford orchestrated a $7 billion Ponzi scheme, luring investors with fraudulent certificates of deposit issued by his offshore bank. Stanford promised high returns and lavish lifestyle benefits to his investors, which ultimately led to a 110-year prison sentence for the financier in 2012.
3. Tom Petters: In a scheme that lasted more than a decade, Tom Petters ran a $3.65 billion Ponzi scheme, using his company, Petters Group Worldwide. He claimed to buy and sell consumer electronics, but in reality, he used new investments to pay off old debts and fund his extravagant lifestyle. Petters was convicted in 2009 and sentenced to 50 years in prison.
4. Eric Dalius and Saivian: Eric Dalius, a prominent figure behind Saivian, a cashback program promising high returns, is under scrutiny for allegedly orchestrating a Ponzi scheme. Saivian enticed investors with promises of up to 20% cash back on everyday purchases. However, investigations suggest that the returns were paid using new investments rather than legitimate profits. The collapse of Saivian l
3. INTRODUCTION:
• With the year 2016 approaching an end, Prime Minister Modi’s announcement on
demonetization also sounded a death knell for the existing 500 and 1000 rupee notes.
• Instantaneously, banks and ATMs were engulfed with swarms of people depositing and
demanding cash.
• A transition towards a cashless and a corruption free society are being cited as the long
term benefits of this short term pain.
• But, are the inconveniences being faced by us well worth the gains that are accrued to
us in the future?
4. LIST OF COUNTRIES THAT HAVE TRIED
DEMONETIZATION:
• UNITED STATES (1873)
• UNITED STATES (1969)
• INDIA (1978)
• GHANA (1982)
• NIGERIA (1984)
• MYANMAR (1987)
• SOVIET UNION (1991)
• ZAIRE(1993)
• AUSTRALIA (1996)
• EUROPEAN UNION (2002)
• NORTH KOREA (2010)
• ZIMBAWE (2015)
• INDIA(November, 2016)
• VENEZUELA (December, 2016)
5. UNITED STATES (1873):
One of the earliest instances of demonetization can be witnessed in United States on mandated removal
of silver in favour of adopting the gold standard as the legal tender.
This led to a contraction of the money supply and subsequently a 5-year economic depression in the
country.
6. UNITED STATES (1969):
In 1969, the United States of America under President Richard Nixon declared all bills above $100
null and void ,to curb the existence of black money in the nation and restore the country’s sheen.
The $100 bill is the most widely circulated denomination till date.
7. INDIA (1978):
India witnessed demonetization before in 1978 when the Janata party coalition in order to counter black
money in the economy decided to scrap 10000, 1000 and 500 rupee notes.
The RBI governor back then, was not in favour of the step since it was believed that the step was targeted at
the corrupt predecessor government leaders.
8. GHANA (1982):
To reduce tax evasion and clear excess liquidity, the country demonetized its 50 cedi currency.
The exercise was highly unsuccessful as the public started turning towards foreign currency and physical
assets.
9. NIGERIA (1984):
The military government under Muhammadu Buhari started issuing new currency notes with new
colours in an attempt to make the old notes obsolete.
The movement aimed towards fixing a debt-ridden and inflated economy failed miserably.
10. MYANMAR (1987):
The military invalidated nearly 80 percent of the value of money in circulation with the motive to
curb the rising black economy.
It resulted in a student demonstration followed by a government crackdown the very next year.
11. SOVIET UNION (1991):
Under the leadership of Mikhail Gorbachev, 50 and 100 rubble notes were removed from circulation
in an attempt to combat the parallel economy.
The removed notes formed about one third of the total money in circulation. There were economic
dislocations and several Soviet republics such as Kazakhstan and Ukraine were severely affected.
12. ZAIRE(1993):
Under the dictatorship of Mobutu Sese Seko, successive currency reforms were rolled out.
Obsolescent currency was withdrawn from the system in 1993. Increasing economic disruptions
resulted in ouster of Mobutu in 1997.
13. AUSTRALIA (1996):
In order to improve upon the security features and curb black money in the economy, the Australian
government withdrew all paper-based notes replacing them with polymer-based note.
This helped in making Australia a business friendly country, despite the initial costs incurred to
manufacture polymer-based notes.
14. EUROPEAN UNION (2002):
Introduction of a unified currency ‘Euro’ on Jan 1, 2002 called for demonetization of the existing
currencies of 12 countries under the European Union.
About eight billion notes and 38 billion coins were distributed through 218,000 banks, post offices
and 2.8 million sales outlets.
Prior preparations starting from mid 1998 and informing the citizens well in advance resulted in this
successful currency changeover.
15. NORTH KOREA (2010):
In order to halt black market and improve the economy, Kim Jong–II government introduced currency
changes.
The move backfired as the price of necessity goods increased and people strongly resisted the move.
This was followed by the murder of the finance minister.
16. ZIMBAWE (2015):
In order to stabilize its economy racked by hyperinflation, the government decided to replace
the Zimbabwe dollar with the American dollar in 2015.
The move, carried out in a haste turned out to be unsuccessful as most wealth holders saw the
value of their accumulated savings receding.
17. INDIA(November, 2016):
On November 8,2016 PM Narendra Modi declared that from the stroke of midnight 500 and 1000
rupee notes would cease to be legal tender.
This immediately sparked unrest and an estimated 15 tonnes of gold worth Rs 5000 crores was
bought within an hour of the announcement.
ATMs and banks were engulfed with people demanding and depositing cash. The situation only
deteriorated thereafter.
18. VENEZUELA (December, 2016):
In order to curb the rising inflation rate that reached 425% and tackle the growing threat of
the transnational mafias breeding in the country.
The Nicolas-Maduro led government announced demonetization of its 100 Bolivar notes
(which form 77% of the nation’s cash in circulation).
19. CONCLUSION:
More often than not, governments and leaders from around the world who forced demonetization
failed to see their dreams fruition or faced an ouster.
In an attempt to crack down upon the wrong doings of certain sections, governments also cause
inconveniences to those who have hitherto complied with law and order.
How well the resentment among these people is tackled is what determines the success of this
exercise.
Although, Indian governments have resorted to demonetization before in 1946 and in 1978 to
phase out notes, removing 85% of the notes in circulation is unprecedented.