Prime Minister Narendra Modi announced that Rs 500 and Rs 1000 banknotes would no longer be legal tender as of midnight. This was an act of demonetization in India aimed at combating black money and corruption. Demonetization involves removing a currency's status as legal tender and replacing it with a new currency. Previous examples of demonetization in other countries are discussed.
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.
On November 8th, 2016 the Government of India 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. The demonetization was aimed at targeting black money, fake currency, corruption, and terrorist funding. While it may cause short-term economic slowdown and cash shortages, the long-term goals are a reduction in black money, increased digitization and move towards a cashless economy with more financial transparency and tax compliance.
This document discusses India's 2016 demonetization initiative to remove high-value currency notes from circulation. It provides 10 key impacts: 1) Black money and corruption will be temporarily reduced; 2) Elections may be impacted; 3) Counterfeiting will be significantly reduced; 4) It will incentivize moving to a cashless society; 5) Gold and silver buying will be temporarily reduced; 6) Real estate prices may come down temporarily; 7) Markets may see short-term downturns; 8) Overseas Indians holding rupees will be impacted; 9) It will help bring banking access to all; and 10) Consumption and short-term economic growth may be negatively impacted. The author
The document discusses India's demonetization of 2016 by Prime Minister Modi that banned Rs. 500 and Rs. 1000 currency notes. It provides definitions of demonetization and remonetization. It discusses the history of demonetization globally and in India in 1946, 1978 and 2016. The reasons for demonetization included combating corruption, black money and counterfeiting. The impacts included effects on the parallel economy, money supply, demand, prices and GDP as well as increased online transactions. Advantages included attacking black money while disadvantages included bank rush and short-term issues.
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.
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
This document discusses the impacts of India's 2016 demonetization policy, which removed Rs 500 and Rs 1000 banknotes from circulation. It provides two case studies showing differing impacts: Amul dairy cooperative adapted well to cashless payments, with no employment impacts, while textiles company Raymond saw a 30% sales drop and may lay off 10,000 workers due to its cash-reliant industry. It also discusses inflation falling due to reduced spending, mixed effects on GDP, financial markets seeing initial drops, and economists viewing long-term benefits despite short-term disruptions.
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!!!!!
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.
On November 8th, 2016 the Government of India 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. The demonetization was aimed at targeting black money, fake currency, corruption, and terrorist funding. While it may cause short-term economic slowdown and cash shortages, the long-term goals are a reduction in black money, increased digitization and move towards a cashless economy with more financial transparency and tax compliance.
This document discusses India's 2016 demonetization initiative to remove high-value currency notes from circulation. It provides 10 key impacts: 1) Black money and corruption will be temporarily reduced; 2) Elections may be impacted; 3) Counterfeiting will be significantly reduced; 4) It will incentivize moving to a cashless society; 5) Gold and silver buying will be temporarily reduced; 6) Real estate prices may come down temporarily; 7) Markets may see short-term downturns; 8) Overseas Indians holding rupees will be impacted; 9) It will help bring banking access to all; and 10) Consumption and short-term economic growth may be negatively impacted. The author
The document discusses India's demonetization of 2016 by Prime Minister Modi that banned Rs. 500 and Rs. 1000 currency notes. It provides definitions of demonetization and remonetization. It discusses the history of demonetization globally and in India in 1946, 1978 and 2016. The reasons for demonetization included combating corruption, black money and counterfeiting. The impacts included effects on the parallel economy, money supply, demand, prices and GDP as well as increased online transactions. Advantages included attacking black money while disadvantages included bank rush and short-term issues.
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.
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
This document discusses the impacts of India's 2016 demonetization policy, which removed Rs 500 and Rs 1000 banknotes from circulation. It provides two case studies showing differing impacts: Amul dairy cooperative adapted well to cashless payments, with no employment impacts, while textiles company Raymond saw a 30% sales drop and may lay off 10,000 workers due to its cash-reliant industry. It also discusses inflation falling due to reduced spending, mixed effects on GDP, financial markets seeing initial drops, and economists viewing long-term benefits despite short-term disruptions.
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 is the act of removing legal tender status of a currency. India demonetized Rs. 500 and Rs. 1000 banknotes in 2016 to curb black money, corruption, and counterfeit currency. While it provided advantages like reducing illegal activity and increasing tax collection, it also had disadvantages such as currency destruction costs, public inconvenience, and slowing down the economy in the short term. The goal of demonetization is to make India's economy cleaner and move it towards greater digitization.
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 aims to curb corruption and black money by removing high denomination banknotes from circulation. It will impact the economy in both positive and negative ways in the short term. Positively, it could reduce inflation, increase deposits in banks for lending, and promote cashless transactions. Negatively, it could severely inconvenience the public, cost the RBI to print new currency, and hit sectors that rely on cash like services. In the long run, demonetization aims to promote transparency, attract investors, and strengthen the financial system by tracking money flows, though big tax evaders may still find ways to hide black money.
This document is a term paper submitted by Raj Kapoor Bhardwaj for the degree of B.com (Hons) at Rajdhani College, University of Delhi under the supervision of Miss Jyoti Kasana. It discusses the impact of the Indian government's 2016 demonetization of Rs. 500 and Rs. 1000 banknotes. In the acknowledgment and declaration sections, Bhardwaj thanks his supervisor Miss Kasana and declares that the paper represents his original work. The paper then discusses the meaning, background, purpose, operational guidelines, impacts in the short and long term, effects on the economy and key sectors, and overall impact of demonetization in India.
An whole description about demonetisation in india .Its rules and regulations.Its positive impact and negative impact.When it was started and with which purpose.How people reacted.How the world reacted
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.
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.
On 8 November 2016, the Government of India announced the demonetization of all ₹500 (US$7.80) and ₹1,000 (US$16) banknotes of the Mahatma Gandhi Series.
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.
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.
What happened on 8th Nov, 2016 and all of its positive side are demonstrated via "DEMONETISATION".
This PRESENTATION gives a brief idea about effects on black money, corruption, terror funding, fake currency and on others system.
This presentation is just designed in public interest and also to make the term DEMONETIZATION lucid to understand. Dont forget to hit like button before you proceed to download. And stay tuned to my channel so that I can serve you better by providing you ppt on current topics............
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.
National Income of India is estimated and published annually by the Central Statistical Organization of India. It refers to the total market value of all final goods and services produced within a country in a year. National income estimates in India have evolved over time from non-scientific personal estimates pre-independence to regular annual estimates by CSO post-independence using scientific methods like product method and income method. There are significant inter-state variations in per capita income across Indian states, with developed states like Goa, Haryana and Maharashtra having much higher per capita incomes than less developed states like Bihar, Jharkhand and Assam.
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.
- Demonetization of Rs. 500 and Rs. 1000 currency notes has significantly impacted retailers in India. Small retailers relying on cash transactions have seen a major slump in sales, while organized retailers have faced a drop in store footfalls and sales.
- Online retailers have also seen a dip in sales of around 50% due to a decrease in cash-on-delivery orders in the aftermath of demonetization.
- In the long run, as customers increasingly adopt digital payments, retailers expect sales and footfalls to return to normal levels. Demonetization is aimed at curbing black money, corruption, and use of illicit funds to sponsor terrorism.
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
The document summarizes the potential economic consequences of India's demonetization of 500 and 1000 rupee notes in November 2016. It is expected to reduce black money in the parallel economy by blocking cash holdings. In the short run, money supply and demand may decrease until new notes circulate, potentially lowering prices of goods purchased with cash like real estate. Various sectors relying on cash, like agriculture and small businesses, may face short-term disruptions. However, alternative payment methods and the formal economy are expected to strengthen in the long run.
The document provides background information on India's demonetization initiative in 2016. It discusses how the Indian government made high denomination banknotes of Rs. 500 and Rs. 1000 invalid, and introduced new notes of Rs. 2000 and Rs. 500. The key objectives were to curb black money, counterfeit currency, and terror funding. It outlines the operational guidelines issued, potential benefits like reducing corruption and inflation. Short term impacts included cash shortages and economic disruptions. Long term benefits may include greater tax compliance, reduced real estate prices, and boosting digital payments. Ensuring adequate currency supplies and support measures were important considerations for the policy.
Demonetization is the act of removing legal tender status of a currency. India demonetized Rs. 500 and Rs. 1000 banknotes in 2016 to curb black money, corruption, and counterfeit currency. While it provided advantages like reducing illegal activity and increasing tax collection, it also had disadvantages such as currency destruction costs, public inconvenience, and slowing down the economy in the short term. The goal of demonetization is to make India's economy cleaner and move it towards greater digitization.
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 aims to curb corruption and black money by removing high denomination banknotes from circulation. It will impact the economy in both positive and negative ways in the short term. Positively, it could reduce inflation, increase deposits in banks for lending, and promote cashless transactions. Negatively, it could severely inconvenience the public, cost the RBI to print new currency, and hit sectors that rely on cash like services. In the long run, demonetization aims to promote transparency, attract investors, and strengthen the financial system by tracking money flows, though big tax evaders may still find ways to hide black money.
This document is a term paper submitted by Raj Kapoor Bhardwaj for the degree of B.com (Hons) at Rajdhani College, University of Delhi under the supervision of Miss Jyoti Kasana. It discusses the impact of the Indian government's 2016 demonetization of Rs. 500 and Rs. 1000 banknotes. In the acknowledgment and declaration sections, Bhardwaj thanks his supervisor Miss Kasana and declares that the paper represents his original work. The paper then discusses the meaning, background, purpose, operational guidelines, impacts in the short and long term, effects on the economy and key sectors, and overall impact of demonetization in India.
An whole description about demonetisation in india .Its rules and regulations.Its positive impact and negative impact.When it was started and with which purpose.How people reacted.How the world reacted
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.
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.
On 8 November 2016, the Government of India announced the demonetization of all ₹500 (US$7.80) and ₹1,000 (US$16) banknotes of the Mahatma Gandhi Series.
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.
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.
What happened on 8th Nov, 2016 and all of its positive side are demonstrated via "DEMONETISATION".
This PRESENTATION gives a brief idea about effects on black money, corruption, terror funding, fake currency and on others system.
This presentation is just designed in public interest and also to make the term DEMONETIZATION lucid to understand. Dont forget to hit like button before you proceed to download. And stay tuned to my channel so that I can serve you better by providing you ppt on current topics............
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.
National Income of India is estimated and published annually by the Central Statistical Organization of India. It refers to the total market value of all final goods and services produced within a country in a year. National income estimates in India have evolved over time from non-scientific personal estimates pre-independence to regular annual estimates by CSO post-independence using scientific methods like product method and income method. There are significant inter-state variations in per capita income across Indian states, with developed states like Goa, Haryana and Maharashtra having much higher per capita incomes than less developed states like Bihar, Jharkhand and Assam.
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.
- Demonetization of Rs. 500 and Rs. 1000 currency notes has significantly impacted retailers in India. Small retailers relying on cash transactions have seen a major slump in sales, while organized retailers have faced a drop in store footfalls and sales.
- Online retailers have also seen a dip in sales of around 50% due to a decrease in cash-on-delivery orders in the aftermath of demonetization.
- In the long run, as customers increasingly adopt digital payments, retailers expect sales and footfalls to return to normal levels. Demonetization is aimed at curbing black money, corruption, and use of illicit funds to sponsor terrorism.
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
The document summarizes the potential economic consequences of India's demonetization of 500 and 1000 rupee notes in November 2016. It is expected to reduce black money in the parallel economy by blocking cash holdings. In the short run, money supply and demand may decrease until new notes circulate, potentially lowering prices of goods purchased with cash like real estate. Various sectors relying on cash, like agriculture and small businesses, may face short-term disruptions. However, alternative payment methods and the formal economy are expected to strengthen in the long run.
The document provides background information on India's demonetization initiative in 2016. It discusses how the Indian government made high denomination banknotes of Rs. 500 and Rs. 1000 invalid, and introduced new notes of Rs. 2000 and Rs. 500. The key objectives were to curb black money, counterfeit currency, and terror funding. It outlines the operational guidelines issued, potential benefits like reducing corruption and inflation. Short term impacts included cash shortages and economic disruptions. Long term benefits may include greater tax compliance, reduced real estate prices, and boosting digital payments. Ensuring adequate currency supplies and support measures were important considerations for the policy.
This document discusses India's demonetization of 500 and 1000 rupee banknotes in November 2016. It provides background on the Indian rupee currency and defines demonetization. The key reasons given for demonetization were to reduce counterfeiting and terrorism funding as well as curb the black market economy. The document explores the potential short-term and medium-term economic impacts, including on accounted vs. unaccounted transactions, informal businesses, and illegal activities that relied on cash. It also discusses how much currency may be permanently removed from circulation and replaced with electronic money instead.
History of Currency : Ancient Coinage, paper, Indian Rupee
Evolution Coins, to paper to Bank Money
Financial Inclusion
Reforms - Adhar cards,Jan Dhan Yojana, GST
Benefits of GST
Why demonetisation is needed?
Suggested by Dr. Ambedkar
Benefits - Unearthing Black Money, Revenue to Govt., Shift to Bank Money
welcomed globally.
Short-term pains
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.
The document defines money and different types of money like currency, demand deposits and time deposits. It discusses depository institutions like banks and credit unions and non-depository institutions. It explains how banks create money through lending and how they operate. It describes the central banking system and tools used by central banks like reserve requirements, discount rate and open market operations. It mentions changes in the financial industry like deregulation, interstate banking and impact of electronic technologies. It provides an overview of international banking, exchange rates, government influences on exchange rates and role of institutions like the World Bank and IMF.
Indian black money refers to undisclosed funds and income earned through illegal means that have not been taxed. Estimates suggest over Rs. 7,280,000 crores of Indian money is deposited in foreign banks, especially Swiss banks. While exact numbers are unknown, Swiss banking officials say Indians are among the largest depositors of illegal foreign money in Switzerland. In 2010, India revised tax agreements with Switzerland to facilitate investigations into black money held in Swiss accounts. A whistleblower provided Wikileaks with a list of famous Indians alleged to have stashed money from activities like mining, stock market manipulation, and drug dealing in Swiss banks since the 1970s.
The document discusses the concept of demand, including:
1) Demand analysis is essential for businesses to understand sales, production, costs, pricing, inventory, and profit planning.
2) Effective demand refers to when a consumer is willing and able to purchase a good.
3) Demand is determined by willingness and ability to pay, and is influenced by price, income, tastes, and other factors.
4) There are different types of demand curves that show the relationship between price and quantity demanded, income and quantity demanded, and how related goods impact demand.
5) The law of demand states that, all else equal, quantity demanded increases when price decreases.
The document discusses the Indian government's decision to demonetize Rs. 500 and Rs. 1000 currency notes. It provides background on the increase in fake currency and black money fueling corruption. The government aims to curb these issues by removing the higher denomination notes from circulation. While this creates short-term hardship, the long-term goals are to bring transparency, reduce corruption, and benefit ordinary citizens and the economy. The impacts on various sectors and pros and cons are debated.
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..
A notice is a short, formal communication used to convey important information to a group within an organization. It should include the name of the issuing authority at the top, the word "NOTICE" clearly displayed, and a precise title indicating the topic. The content must provide all relevant details in a clear but concise manner. The name and designation of the issuing contact are placed at the bottom left. The example notice drafts the information for a drama competition open to students of classes VI-VIII, including sign-up details, audition dates, and a contact for further information.
The document provides guidelines for writing notices to announce events. It states that a notice should include the title, date, event details like time, location and duration, contact information for the responsible organization or individual, and be brief at around 50 words. The style of language depends on the audience and theme of the event. Notices are effective ways to disseminate information to large audiences quickly and should be written in a simple, formal tone. Examples of appropriate events to announce include meetings, excursions, and changes. Notices can be placed in locations like notice boards, newspapers, and magazines. A notice format typically includes the word "NOTICE", date, heading, writer's name and a sample notice is provided.
Demonetization is the discontinuation of a currency unit in circulation and replacing it with a new one. India demonetized 86% of its currency on November 8th, 2016 by removing Rs. 500 and Rs. 1000 notes from circulation. The major reasons for India's demonetization were to tackle issues like shadow economy, counterfeit currency, and terror financing. Some rationales included boosting bank deposits and savings, improving monetary transmission to reduce lending rates, and supporting government finances through increased tax collections. However, demonetization also caused short-term inconvenience and cash shortages that impacted businesses and daily wage earners.
This document discusses the key components of an effective notice. It explains that a notice is a short, formal piece of writing used to announce events, celebrations, instructions, appeals or invitations. The document then lists the typical information included in notices, such as the name of the issuing organization, date, heading indicating the purpose, and details about schedules, programs or instructions. Finally, it provides examples of components for specific types of notices, such as meetings, events, and lost items, emphasizing that an effective notice clearly communicates all essential details.
This document describes a multi-notice display board system using GSM technology. It is summarized as follows:
The system allows wireless control of multiple notice boards using an AT89S52 microcontroller and GSM modem. Notices can be sent individually to boards A and B or to both boards simultaneously. The microcontroller interfaces with a 20x4 LCD display on each board to show messages. The system provides a low-cost and low-power way to remotely manage multiple display boards for places like colleges, hospitals, and stations.
English Writing Skills by Atishay JainAtishay Jain
The document provides guidelines for different types of written communication such as notices, circulars, posters, articles, advertisements, invitations, and letters. It describes the key elements and format that should be followed for each type of written piece, such as including relevant details like the topic, date, location, and contact information. Sample templates and examples are also provided to illustrate how to draft each type of written communication.
SmartPrep's teaching methodology ensures better learning through unique interactive teaching-learning sessions, conducted by our certified & highly qualified faculty members at our state-of-the -art centres spread across Delhi-NCR and other cities of India. SmartPrep has programs in Maths, Science, English, Accountancy and Economics for Classes VII to XII.
Notice provides information, instructions, or warnings to people. It has several functions like prohibiting certain actions, providing caution or warnings, and guidance. Notices use simple, short text that is easy to understand, often with capital letters and pictures. There are different types of notices like commands (positive or negative), cautions, prohibitions, and warnings. Notices target various groups like pedestrians and drivers. They are commonly found in public places, certain buildings and rooms to communicate important messages to readers and visitors.
This document provides guidance on writing effective notices. It explains that notices are a formal means of communication used to announce or display information to a specific group. The key aspects of a notice are identified as the name of the issuing organization, a title, catchy heading, date, body, and signature. Notices should be clear and avoid confusion. They should attract attention with bold text, slogans or phrases. Examples are provided demonstrating how to write notices for meetings and fundraising events. Guidance is given on word count, language, and layout. Students are assigned to write notices for school-related activities.
The document discusses the demonetization that was introduced in India in November 2016. It provides background on what demonetization means, details of India removing Rs. 500 and Rs. 1000 notes from circulation, the effects this has had, and both advantages and challenges of demonetization. It notes that demonetization aims to counter terrorism, reduce black money, and increase tax revenue but faces challenges like economic consequences seen in other countries and a need for tax system simplification.
The document discusses the effects of demonetization in the Indian economy in 2016. It defines demonetization as the process where a currency is no longer considered legal tender and must be replaced. On November 8, 2016 the Indian government announced that Rs. 500 and Rs. 1000 notes would no longer be legal tender, in an effort to curb black money. The objectives were to reduce corruption, black money, inflation and illegal activities. While it impacted the money supply and parallel economy in the short term, the long term goals were to increase tax collection and push for digital transactions. The document also outlines some advantages like reducing fraudulent activities, and disadvantages like temporary economic slowdown.
Vietnam has taken steps to address money laundering risks through laws and regulations but its framework remains insufficient. Money laundering activities have been visible through various means like bank accounts and illegal currency transfers. Key directives include the 2012 Anti-Money Laundering Law and related decrees that establish regulators like the State Bank of Vietnam and require customer due diligence and record keeping by reporting entities. Violations of anti-money laundering laws can result in administrative or criminal penalties including imprisonment and asset forfeiture. Reporting entities must also implement internal anti-money laundering procedures and training.
International economics deals with the economic relations among nations. The resulting interdependence is very important to the economic well-being of most nations of the world and is on the increase. The economic relations among nations differ from the economic relations among the various part of a nation. This gives rise to different problems, requiring somewhat different tools of analysis, and justifies International Economics as a distinct and separate branch of “Applied” Economics.
International economics deals with
1) The Pure Theory of Trade. This examines the basis for trade and the gains from trade.
2) The Theory of Commercial Policy. This studies the reasons for and the results of obstructions to the free flow of trade.
3) The Balance of Payments. This examines a nation’s total payments to and total receipts from the rest of the world. These involve the exchange of one currency with others.
4) Adjustment in the Balance of Payments. This deals with the mechanism of adjustment to balance of payments disequilibria under different international monetary systems.
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.
Demonetization is the act of stripping a currency unit of its status as legal tender, requiring a change in national currency. The Indian government recently demonetized Rs. 500 and Rs. 1000 currency notes to tackle black money, lower cash circulation related to corruption, counterfeit money used for terrorism funding, and scoop over Rs. 5 lakh crore from the black market economy. While demonetization impacts many sectors and causes short-term hardship, it aims to curb black money, terrorism financing, and tax evasion by requiring the disclosure of unaccounted cash through bank deposits.
Demonetization is the act of stripping a currency unit of its status as legal tender, requiring a change in national currency. The Indian government recently demonetized Rs. 500 and Rs. 1000 currency notes to tackle black money, lower cash circulation related to corruption, counter fake currency used for terrorism funding, and scoop out over Rs. 5 lakh crore of black money from the economy. While demonetization aims to curb illegal activities funded by black money, it also causes short-term hardship for citizens and shortages in banks and ATMs during the currency exchange period.
Gradually taking land out of the market place is the only way to solve the two tier housing market in New Zealand. While Auckland house prices rise at 13% a year, in the provinces the real prices have dropped 20%. This solution introduces a treasury created tax credit to pay for land of those who opt in.
Model of a flexible exchange rate regime for Complementary currenciesSehrGlobal
This document discusses complementary currencies as alternative monetary systems that can behave differently than official currencies. It proposes several types of complementary currencies, including demurrage currencies, time-based currencies, barter systems, and cryptocurrencies. The document then discusses how complementary currencies can help support local economies and business cycles by substituting for absent official money. It proposes a model where the exchange rate between a complementary currency and official currencies is flexible, allowing the complementary currency to have independent monetary policy.
Demonetization and its effects
Dr. Abdul Azeez N.P.
Assistant Professor of Economics,
Aligarh Muslim University Malappuram Centre abdulazeeznp@gmail.com
This document discusses the importance of harmonizing regulations for international remittances. It notes that Bangladesh relies heavily on remittances from expatriate workers to fuel economic development. While banks provide remittance services, their fees are not reasonable for low-wage workers. Exchange houses and money transfer organizations (MTOs) fill this gap by providing more affordable services, though they rely on banks for settlements. To further facilitate cross-border remittances, regulatory frameworks need coordinated harmonization across countries regarding the transaction nature, services allowed, and reporting systems for exchange houses and MTOs. While harmonizing regulations globally poses challenges, setting up an international coordinating body could help overcome them.
This document discusses the history and purpose of demonetization in India. It provides context on past demonetization efforts and explains the goals of the 2016 demonetization, which aimed to curb black money, corruption, and counterfeiting. The document outlines both the advantages, like reducing unaccounted cash and increasing tax revenue, and disadvantages, such as implementation costs and temporary economic slowdown, of the demonetization policy.
The document provides information on national income and employment. It discusses key concepts related to national income such as gross national product, net national product, domestic income, and personal income. It also covers different methods of measuring national income including the product method, income method, expenditure method, and value added method. The document notes some difficulties in measuring national income for developing countries and also outlines concepts of money such as medium of exchange, unit of account, and store of value. It discusses functions of central banks and commercial banks.
Money plays a vital role in the economy and daily life. It serves static roles like being a medium of exchange, unit of account, store of value, and standard for deferred payments. Money also plays dynamic roles like facilitating specialization and trade, acting as the basis for credit, enabling capital formation and economic growth, and allowing easy calculation of incomes. Overall, money is essential for consumers, producers, the government, and society by simplifying transactions and resource allocation throughout the economy.
Money plays a vital role in the economy and daily life. It serves static roles like a medium of exchange, unit of account, store of value, and standard for deferred payments. It also plays dynamic roles like facilitating consumer choice, business and production activities, specialization and trade. Money is essential for the government, credit system, capital formation, and solving key economic problems. It allows calculation of national income and factors' rewards. Overall, money is the lifeblood of modern economies and societies.
I begin by arguing that an important aspect of Bitcoin (value transmission) was already regulated before it was born. I present a review not only of 2014 but of the past few years with regards to how regulatory and law enforcement events have shaped (or will shape) the regulatory landscape for Bitcoin and virtual currencies. Regulation as inevitable: let's INNOVATE, IMPLEMENT & INFLUENCE
Lawyer in Vietnam Dr. Oliver Massmann - Vietnam - Country UpdateDr. Oliver Massmann
- Vietnam is not a member of the FATF or Egmont Group and is not on any international blacklists.
- Money laundering risks have increased with Vietnam's economic integration, seen through various financial crimes. AML laws took effect in 2013 but implementation remains a challenge.
- Key AML authorities include the SBV, Ministry of Public Security, and an AML Steering Committee. Affected entities must comply with customer due diligence, record keeping, reporting and internal control requirements.
- Penalties for non-compliance range from fines to 15 years imprisonment and asset seizure. International cooperation focuses on information sharing and judicial assistance.
The document discusses key concepts in macroeconomics including:
1) The balance of payments records a country's economic transactions with other nations, including exports/imports and capital inflows/outflows to maintain equilibrium.
2) Current accounts track tangible goods and services trade, while capital accounts track short-and long-term capital movements.
3) Official reserves are used to address disequilibriums in the balance of payments.
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An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
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.
New Visa Rules for Tourists and Students in Thailand | Amit Kakkar Easy VisaAmit Kakkar
Discover essential details about Thailand's recent visa policy changes, tailored for tourists and students. Amit Kakkar Easy Visa provides a comprehensive overview of new requirements, application processes, and tips to ensure a smooth transition for all travelers.
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.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
Discover the Future of Dogecoin with Our Comprehensive Guidance36 Crypto
Learn in-depth about Dogecoin's trajectory and stay informed with 36crypto's essential and up-to-date information about the crypto space.
Our presentation delves into Dogecoin's potential future, exploring whether it's destined to skyrocket to the moon or face a downward spiral. In addition, it highlights invaluable insights. Don't miss out on this opportunity to enhance your crypto understanding!
https://36crypto.com/the-future-of-dogecoin-how-high-can-this-cryptocurrency-reach/
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.
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
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Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
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.
2. h4ps://www.youtube.com/watch?v=rn64Vf6GEoo
Addressing the country, Prime Minister Narendra Modi said: "We need to
take a new solid step to fight black money. From now on, Rs 500 and Rs
1000 notes will not be used. Have 50 days to turn them into banks and post
offices."
3. Meaning • Demone&za&on is the act of stripping a currency unit of its status as legal
tender. Demone&za&on is necessary whenever there is a change of na&onal
currency. The old unit of currency must be re&red and replaced with a new
currency unit.
• A recent example of demone&za&on occurred when the na&ons of the
European Monetary Union adopted the euro. In order to switch to the euro,
authori&es first fixed exchange rates for the varied na&onal currencies into
euros. When the € was introduced, the old na&onal currencies were
demone&zed. However, the old currencies remained conver&ble into euros
for a while so that a smooth transi&on through demone&za&on would be
assured.
• The case of break-up of USSR and end of ruble zone is an alterna&ve case of
demone&za&on. in 1993, the Central Bank of Russia (CBR) unilaterally
demone&zed soviet era ruble notes and exchanged them for Russian rubles.
The ruble zone was effec&vely terminated and the remaining 9 ruble zone
countries (some countries had le_ even earlier) were forced to adopt their
own currencies. Ul&mately, the ruble zone broke up because Russia (or more
precisely CBR) was not prepared to pay the economic price required for its
con&nua&on.
• Even a_er winning the war of independence, Bangladesh retained the old
currency for several months. The statute seang up the Bank of
Bangladesh stated that “all Bank Notes, Coins and Currency Notes … which
were in circula&on in Bangladesh [on December 16, 1971] shall con&nue to
be legal tender”. Subsequently, Bangladesh printed new currency and
exchanged the old notes.
• The context and coverage of Indian Demone&za&on 2016 is different.
8. RK Laxman's Cartoon when
demonetization was tried back in 1978
The cartoon is made in the context of 1978, when the largest
denominations formed a very little part of the overall economy, we can
never really be sure of the moves taken by the government.
12. Factors Leading Genera&on of Black Money
• Black money arising from illegal ac&vi&es such as crime and corrup&on has an underlying
an&social element. The ‘criminal’ component of black money may include proceeds from
a range of ac&vi&es including racketeering, trafficking in counterfeit and contraband
goods, smuggling, produc&on and trade of narco&cs, forgery, illegal mining, illegal felling
of forests, illicit liquor trade, robbery, kidnapping, human trafficking, sexual exploita&on
and pros&tu&on, chea&ng and financial fraud, embezzlement, drug money, bank frauds,
and illegal trade in arms. Some of these offences are included in the schedule of the
Preven&on of Money Laundering Act 2002.
• The ‘corrupt’ component of such money could stem from bribery and the_ by those
holding public office – such as by grant of business, leakages from government social
spending programmes, speed money to circumvent or fast-track procedures, black
marke&ng of price-controlled services, and altering land use regularizing unauthorized
construc&on. All these ac&vi&es are illegal per se and a result of human greed combined
with declining societal values and inability of the state to prevent them.
• Factors leading to their genera&on are both social and administra&ve.
• These illegal ac&vi&es are punishable under various Acts of the central and state
governments which are administered by various law enforcement agencies. Effec&ve
implementa&on of these Acts is the responsibility of both state and central governments.
13. Black money generated from permissible
economic ac&vi&es
• Significant amount of black money, however, is
generated through legally permissible economic
ac&vi&es, which are not accounted for and
disclosed or reported to the public authori&es as
per the law or regula&ons, thereby conver&ng
such income into black money. The failure to
report or disclose such ac&vi&es or income may
be with the objec&ve of evading taxes or avoiding
the cost of compliance related to such repor&ng
or disclosure. It may also be the result of non-
compliance with some other law.
14. Culture and social prac&ces
• Culture and social prac&ces may also play a vital role in
deciding the preferences of ci&zens between tax
compliance and black money genera&on.
• In a society where tax evasion and under-repor&ng of
ac&vi&es and income is perceived to be very common or
the norm, such ac&vi&es may be considered acceptable and
honest tax compliance and paying one’s due share to the
public fund may not be considered a virtue.
• Studies indicate that countries with rela&vely poor
implementa&on of regula&ons tend to have a higher share
of unaccounted economy, whereas countries with properly
implemented regula&ons and sound deterrence have
smaller ‘black’ economies.
15.
16. Processes followed to generate black money from
permissible economic ac&vi&es
- Manipula&on of accounts : Financial Statement Approach
- Land and Real Estate Transac&ons
- Bullion and Jewelry Transac&ons
- Financial Market Transac&ons
- Public procurement
- Non-profit sector
An OECD (Organisa&on for Economic Coopera&on and Development)
es&mate puts the figure for public procurement in India at 30 per cent of
the GDP whereas a WTO (World Trade Organisa&on) es&mate puts this
figure at 20 per cent of the GDP.2 The Compe&&on Commission of India
had es&mated in a paper that the annual public sector procurement in India
would be of the order of Rs. 8 lakh crore while a rough es&ma&on of direct
government procurement is between Rs. 2.5 and 3 lakh crore. This puts the
total public procurement figure for India at around Rs. 10 to 11 lakh crore
per year.
17. Informal Sector and Cash Economy
• The issue of black money is related to the
magnitude of cash transac&ons in the informal
economy. The demand for currency is
determined by a number of factors such as
income, price levels, and opportunity cost of
holding currency.
• Factors like dependence on agriculture, existence
of a large informal sector, and insufficient
banking infrastructure with large un-banked and
under-banked areas contribute to the large cash
economy in India.
18. External trade and Transfer Pricing
• More than 60 per cent4 of global trade is carried out between associated
enterprises of mul&na&onal enterprises (MNEs). Since alloca&on of costs
and overheads and fixing of price of product/services are highly
subjec&ve, MNEs enjoy considerable discre&on in alloca&ng costs and
prices to par&cular products/services and geographical jurisdic&ons. Such
discre&on enables them to transfer profit/income to no tax or low tax
jurisdic&ons.
• Transfer pricing has emerged as the biggest tool for genera&on and
transfer of black money.
• Tax evasion through transfer pricing is largely invisible to the public and
difficult and expensive for tax officers to detect. Chris&anaid es&mates
that developing countries may be losing over US$160billion of tax
revenues a year, primarily through transfer pricing strategies.
Chris&anaid, Death and Taxes: The Truth of Tax Dodging, March 2009
21. Methodology of es&ma&ons of Black Money
Two dis&nct approaches:
(i) Kaldor’s approach of quan&fying non-salary incomes
above the exemp&on limit of income tax; and [ This was
followed by the Wanchoo Commi4ee , 1971]
(ii) The Edgar L. Feige method of working out transac&on
income on the basis of currency-deposit ra&o and
deriving from it the ‘black’ income of the economy.
Also refer to variables used by O.P.Chopra (1973-74), S
Acharya of NIPFP (1985), Gupta & Gupta (1981),
D.K.Rangnekar (1982), M.C.Joshi (2011).
22. Ins&tu&ons to Deal with Black Money
• Central Board of Direct Taxes
• Enforcement Directorate
• Financial Intelligence Unit
• Central Board of Excise and Customs and DRI
- The Directorate General of Central Excise Intelligence (DGCEI)
- The Directorate of Revenue Intelligence (DRI)
• Central Economic Intelligence Bureau
• NCB
• The Central Bureau of Narco&cs (CBN)
• SFIO func&ons under the Ministry of Corporate Affairs
• The Registrar of Companies (ROC)
• The Registrar of Socie&es (ROS)
• The Bureau of Immigra&on (BOI)
• The Economic Intelligence Council (EIC)
• The Inter-Ministerial Coordina&on Commi4ee on Comba&ng Financing of Terrorism and Preven&on
of Money Laundering (IMCC)
• The Na&onal Crime Records Bureau (NCRB)
• The Na&onal Inves&ga&on Agency (NIA)
• CBI and Police Authori&es
27. RBI Working Paper Series 3 / 2013 : Es9ma9on of Counterfeit
Currency Notes in India – Alterna9ve Methodologies , March
19,2013 by Shri Sanjoy Bose and Dr. Abhiman Das
Counterfei&ng poses increasing challenges to currencies all over the world, including India.
Recent advances in prin&ng technology have only aided produc&on of counterfeit notes.
Despite the extent of counterfei&ng being apparently small in India, it poses serious threats
to the currency and financial system. The Government and the Reserve Bank have responded
to this threat by redesigning notes as also by a4emp&ng to improve public understanding
about authen&city of currency through awareness campaigns. To assess the effec&veness of
various measures to deter counterfei&ng, however, one needs to understand the exact
nature of the threat that counterfei&ng poses on economic ac&vity. It is necessary to
examine the level of counterfei&ng on a regular basis. Such examina&on is cri&cal both from
theore&cal and empirical points of view.
The extent of counterfei&ng is usually judged by observing the current flow of recoveries, or
by es&ma&ng the outstanding stock of counterfeits as a ra&o against total notes in
circula&on. However, the flow of recovery as well as seizure of counterfeits is directly
observable, whereas the total stock of counterfeits cannot be measured directly. To fill this
lacuna, the paper has proposed a probability model based methodology that could
poten&ally provide a scien&fic and prac&cal solu&on in obtaining credible sta&s&cal es&mates
of counterfeits in an enduring way.
32. A study on Fake Indian Currency Note (FICN) issues,
including es&ma&on of FICN in circula&on, was
conducted by Indian Sta&s&cal Ins&tute (ISI), Kolkata
under the overall supervision of NIA (Na&onal
Inves&ga&on Agency).
As per the study, the face value of FICN in circula&on
was found to be about Rs 400 crore [Minister of state
for finance Arjun Ram Meghwal said in a wri4en reply
to a Rajya Sabha ques&on on 2.8.2016]
38. The presses supplied around 6 billion pieces of Rs 500 and Rs 1000 in
2014-15 and 5 billion pieces in 2015-16. In 2016-17, the original
indent for Rs 500 and Rs 1000 notes was around 8 billion. If the en&re
prin&ng capacity is pressed into ac&on, then it might be possible to
produce around 23 billion pieces a year (inclusive of all
denomina&ons). But with Rs 500 and Rs 1000 alone accoun&ng for 22
billion notes in circula&on, it might not be possible to meet the
demand for new Rs 500 and Rs 2000 in the short term.
41. • In his ar&cle for India Today, Jay Dubashi wrote that the move was directed at
freezing the secret funds of poli&cians, especially Indira Gandhi’s Congress.
Morarji Desai, the then Prime Minister said that the party had been spending
money “like water”. Gandhi had reportedly denied allega&ons saying that “even
a ten-rupee note is a luxury to me”.
• What’s interes&ng to note, however, is that IG Patel, the then RBI governor, was
not in favour of the step. He felt that many in the government perceived the
step as a measure targeted at the “corrupt predecessor government or
government leaders”.
• In his book, Glimpses of Indian Economic Policy: an Insider’s View, Patel writes
that when the then finance minister HM Patel told him about the step, he
asserted that steps like these rarely have striking results.
• He added that most people in possession of black money rarely keep their ill-
go4en earnings in the form of currency for long. Thinking that black money is
stashed away under ma4resses or suitcases is naive
A Look Back to 1978 When Currency
Notes Were Last Scrapped
42. • Dubashi in his ar&cle also wrote : Black money stashed as high-
value currency is much less than black money as untaxed income,
part of which might be splurged in conspicuous consump&on or
used for investment in real estate, commodi&es, stocks, benami
lending or plain gra_ to secure poli&cal or administra&ve goodwill.
• 1978 demone&za&on scheme was not successful primarily because
of two reasons:
- insufficient secrecy
- Most of the holders of high denomina&on notes did not turn up at
the bank to exchange their notes. Instead, they sold them to others
(mainly to the poor labourers) who could present them at the bank
with less suspicion.
A Look Back to 1978 When Currency
Notes Were Last Scrapped
43.
44. Demone&za&on in Philippines
• The Bangko Sentral ng Pilipinas (BSP) has been reminding
consumers that their old peso bills, which were issued before 2010,
can only be used un&l December 31, 2015 for daily transac&ons.
• This is because from January to December 2016, the old notes
cannot be used for regular transac&ons and can only be exchanged
at authorized banks and BSP offices. From January 2017 onwards,
these old bills will be demone&zed, or will no longer have monetary
value.
• BSP defines demone&za&on as the process of removing the
monetary value of a legal tender currency. This means that
demone&zed currency is no longer accepted to pay for goods and
services.
• This process is done to safeguard the integrity of the currency,
protec&ng it against counterfeiters.
45. Nigeria During the government of Muhammadu Buhari in 1984, Nigeria introduced
new currency and banned the old notes. It was great success. See Slides
27-28 how Buharinomics salavaged Nigerian economy.
Ghana In 1982, Ghana demone&zed 50 cedis note to tackle tax evasion and empty
excess liquidity. This made the people of the country support the black
market and they started inves&ng in physical assets which obviously made
the economy weak. See Slides 29-30 how the case of demone&za&on in
Ghana was different.
USSR Mikhail Gorbachev ordered to withdrew large-ruble bills from circula&on to
take over the black market. The move didn’t go well with the ci&zens which
resulted into a coup a4empt which brought down his authority and the led
to Soviet breakup. See Slide 31
Demone&za&on in other Countries
46. Buharinomics - General Buhari’s
economic program marshaled out
to salvage the nation in 1984
Buharinomics was General Buhari’s economic program marshaled out to salvage
the nation in 1984. He summarized the objective of his economic policy (as
articulated in the 1984 budget) as follows: "To arrest the decline in the economy,
to put the economy on a proper course of recovery and solvency, and to chart a
future course for economic stability and prosperity" (West Africa, May 14, 1984).
Buharinomics was to wean the nation off consumerism and profligacy, while
channeling it towards frugality and productivity. To accomplish this, the
government was to cut down on its expenditure, engage in more efficient
restricting and controlling of foreign exchange outflow, undertake the revival of
the country's productive capacity (concentration was on agriculture), and
broaden government's revenue base.
47. Buharinomics - General Buhari’s economic
program marshaled out to salvage the nation
in 1984
• The first test of Buharinomics was implemented to revive the
comatose banking industry and arrest local currency hoarding. In
April 1984, the government ordered a change in the color of the
Naira. This action was dubbed the “real coup” by unscrupulous
business men and politicians who had almost eliminated the need
for commercial banking in Nigeria by keeping their moneys under
their mattresses or by trafficking them into neighboring West
African countries.
• This currency change, which forced all holders of the naira notes
into exchanging them for the new naira notes at commercial
banks, infused billions that had remained unaccounted for into the
banking industry and eliminated counterfeited currencies, which
had inflicted inflationary and other nefarious effects on the
economy. This measure had an immediate revitalizing effect in the
banking industry and was an unqualified success. Banks that were
close to collapsing became vibrant again, to the extent that some
of them began to hire hitherto unemployed Nigerians.
51. The final Soviet monetary reform began on January 22, 1991. It was named
the Pavlov Reform after its architect, Minister of Finance Valentin Pavlov, who
also became the last prime minister of the Soviet Union.
The standard of living in the country plummeted. By the end of 1991, the economy
of the USSR was in a disastrous state. Production continued to slump. The
average national income dwindled by 20% compared with 1990. The state budget
deficit, namely, the excess of expenditures over revenues, reached an estimated
20-30% of the GDP. The nationwide growth of the money supply was fraught with
the loss of control over the financial system and hyperinflation exceeding 50% each
month, which had the potential to paralyze the entire economy.
The main consequence of the reform was the people’s loss of confidence in the
government’s actions. Many politicians and historians think that the 1991 Soviet
political and financial reforms completely undermined the people’s trust in the
Kremlin and seriously influenced subsequent developments, including the August
Coup of 1991 and the Belavezha Accords of December 1991 on dissolving the
USSR.
54. Demonetization a bold move, but could
hurt markets for 6 months: Christopher
Wood
CLSA MD Christopher Wood on Narendra
Modi’s demonetization move against black
money and impact on markets
“I think it is going to impact the economy in the next six months. But I am
hoping it is short and sharp. The biggest negative is for the real estate
market. It is negative for equities in the short term and positive for
bonds.
The question is how long will the pain remain (for equity markets)—six
months or one year? I am hoping it’s six months, but that’s just an initial
estimate. It all depends on how quickly they get the new money in place.
If the new money comes in soon, things will not be so bad. If it goes
beyond six months, the markets will be vulnerable.
The real estate sector was already doing badly, that’s hit, but then it was
already lying on the ground. Autos, cement and housing finance were
doing well, and are now going to be hit.
On the positive side, tax revenues will rise and this will help in reining in
the fiscal deficit. The other benefit will be to the bond market and
currency. The currency has been very stable and this will be a positive
for it.”
56. Impact of Demonetization on Residential
Real Estate
The luxury and high-end segments of residential real estate will also see a
major impact from this exercise, since it is another area which has seen a lot
of payments done in cash. The legal banking/financing channels have
accounted for only a small part of all transactions in this space. The
demonetization move is likely to result in luxury property prices dipping by as
much as 25-30% as sellers struggle to offload properties to generate liquidity.
This means that luxury home buyers will suddenly have a much wider
bandwidth of options to choose from.
Ashwinder Raj Singh, CEO – Residential Services, JLL India
57. The Nega&ves
• Extracts of “Black Money” and India’s Demone9za9on Project
Prominent Ci9zens Ques9on Delhi Government's Inten9ons
By Prof Prabhat Patnaik
• Black money is generated through evasion of taxes on income from lawful ac&vi&es and money
generated from illegal ac&vi&es. In the absence of steps to curb the genera&on of black money,
demone&za&on is a fu&le exercise, as it proved to be in 1978.
• In the last 5 years, IT raids have found that only 5-6% of black money is kept in hard cash.
Moreover, those who have amassed sizable black money are equipped to find ways around
demone&za&on by conver&ng their exis&ng cash to bullion, gold jewellery, real estate and foreign
currencies through brokers and middle-men. In fact, organized middle-men and touts have already
emerged to convert black money into white for a commission.
• As per The Indian Sta&s&cal Ins&tute, Kolkata study done on behalf of the Na&onal Inves&ga&on
Agency (NIA), Rs 400 crores worth of fake currency is in circula&on in the Indian economy. This is
only .028% of Rs 14,180 billion worth currency demone&sed in Rs 500 and Rs 1000 notes.
• 86% of currency in circula&on is in Rs 500 and Rs 1000 notes. 97% of all transac&ons by volume are
done in cash. Summary demone&za&on has created chaos all over the countr
• Only about 30% of the Indian popula&on has access to the banking system as per data compiled by
the banking division of the finance ministry. Moreover, the distribu&on of banks is highly skewed
with a third of all bank branches in only 60 Tier 1 and Tier 2 ci&es/towns. Consequently, people in
rural India who o_en also suffer from inadequate informa&on have become the worst vic&ms of
demone&sa&on.
59. Which will be affected
§ Effect on parallel economy: Cash Economy to Witness Contraction
§ Effect on GDP: Downward Bias to GDP Growth
§ Lower Money Supply has a Defla&onary Effect
§ Impact on Bond Markets
§ Credit Impact across Sectors
§ Effect on Banks
§ Effect on Online Transac&ons and alterna&ve modes of payment
§ Bank Deposit Rates to So_en
§ NBFC’s Asset Quality Faces Pressure
§ Payment Banks to Benefit
60. “This [demonetization] is a step which will
make a positive difference, if the transition
challenges get handled well by the
administration,” says Jitendra V. Singh,
Wharton emeritus professor of
management.
“We will need to be careful of potential
attempts to derail this positive agenda.”
The International Monetary Fund (IMF)
echoes those sentiments. “We support the
measures to fight corruption and illicit
financial flows in India,” said a
spokesperson Gerry Rice. “Of course, given
the large role of cash in everyday
transactions in India’s economy, the
currency transition will have to be
managed prudently to minimize possible
disruption.”
61. According to Mauro F. Guillen, a Wharton management
professor and director of the School’s Lauder Institute:
“important source of problems” such as corrup&on, black money,
terrorism and counterfeit money. “The eurozone will be
elimina&ng the largest euro note. The U.S. is also trying to reduce
the [number of] 100 dollar bills in circula&on.”
Dr. Felix Zandman Professor
Professor of International Management
Director, The Lauder Institute
62. Withdrawal of Legal Tender Status for 500
and 1000 Notes: RBI Notice
- Government of India vide their Notification no. 2652 dated November 8, 2016 have withdrawn
the Legal Tender status of 500 and 1,000 denominations of banknotes of the Mahatma
Gandhi Series issued by the Reserve Bank of India till November 8, 2016.
- Starting from November 10, 2016, members of public/corporates, business firms, societies,
trusts, etc., holding these notes can tender them at any office of the Reserve Bank or any bank
branch and obtain value thereof by credit into their respective bank accounts.
- For their immediate cash needs, these notes of value up to 4,000 per person can be
exchanged for cash over the counter of these bank branches.
Public are advised to present a valid proof of identity for availing this exchange facility.
- Value credited to their bank accounts can be freely used by issue of cheques or by remitting
through various electronic modes of transfer like NEFT, RTGS, IMPS, mobile banking, internet
banking etc.
-Cash withdrawals from bank accounts, over the bank counters, will be restricted to a limited
amount of 10,000 per day subject to an overall limit of 20,000 a week from November 9,
2016 till end of business on November 24, 2016. The limits will be reviewed after this.
- All ATMs and other cash machines will remain shut on November 9, 2016 to facilitate
recalibration. When ready, they will be reactivated and cash drawals from ATMs will be
restricted to 2,000 per day per card up to November 18, 2016 and the limits shall be raised
to 4000 per day per card from November 19, 2016.
-Any person who is unable to exchange or deposit the specified banknotes in their bank
accounts on or before December 30, 2016 shall be given an opportunity to do so at specified
offices of the Reserve Bank or such other facility until a later date as may be specified by the
Reserve Bank.