Cash transactions play an important role in the Indian economy for several reasons. A majority of Indians live in rural areas and have low levels of literacy, making cash a more accessible form of payment than alternatives like banking. The agricultural sector, which employs most of the population, also relies heavily on cash-based exchanges given the low-value and rural nature of most transactions. However, widespread cash use also enables a large black market economy, as many cash transactions go unreported to avoid taxes. Moving forward, reducing income taxes and promoting alternatives to cash like debit/credit cards may help formalize more economic activity while still accommodating India's cash-dependent populations and sectors.
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.
Demonetization Impact on Black Money Counterfeit Currency and CorruptionSyed Mahmood Ali
It's been about 6 months since the decision of
Demonetization of higher denomination no tes of Rs 500 and
1000 withdrawn from the circulation and new currency notes
of Rs. 500 and 2000 issued for means of exchange. The
decision to withdraw 86 per cent of the cash in circulation has
thrown India into peril. Such a big and unexpected policy
change naturally carries with it a large collateral damage at
least in the short run where in India large section of the
economy is comprised of the informal or unorganized sector
which runs on cash.
The aim of this paper is to through the light on how,
demonetization decision show impact on Black money,
Counterfeit currency and Corruption in the country. In this
paper it will be analyzed to see whether the said objectives by
the Prime minister of India Mr. Narendra Modi are getting
accomplished after the decision.
Demonetization in India involved the removal of Rs 500 and Rs 1000 banknotes as legal tender. On November 8, 2016 Prime Minister Modi announced that these notes would no longer be accepted, aiming to curb corruption, black money, and terrorist financing. Citizens were given time to deposit the old notes in banks. While the move aimed to promote digitization and a cashless economy, it also led to cash shortages and economic slowdown in the short-term as cash transactions reduced. The impact on corruption, black money, and GDP growth remains debated, with both benefits and costs associated with this large-scale demonetization initiative.
The document provides background information on India's 2016 demonetization of 500 and 1000 rupee banknotes. It discusses the economic and political context for the move, details of the announcement including exchange procedures, allegations of prior information leaks, and impacts on the population.
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.
Start ups get boost up with demonetisation driveRakesh Singh
Recent Demonetisation drive launched by PM Narendra Modi has given a much needed boost to startups in online space. Fintech sector is of course largest gainer but others industries are not far behind.
Modi's decision to demonetize Rs. 500 and Rs. 1000 banknotes aimed to tackle black money, corruption, and the cash-based economy. It had both short-term negative impacts like cash shortages and long-term potential benefits like increased tax revenues and use of digital payments. While some praised the move for curbing crimes like human trafficking, others criticized long bank lines that led to deaths and difficulties for farmers and small businesses dependent on cash transactions. Overall assessments of demonetization's impacts are mixed.
Importance Of Cash Transactions In The Indian EconomySayali Saoji
Cash transactions play an important role in the Indian economy for several reasons:
- A majority of Indians, especially in rural areas, have low literacy levels and lack access to basic infrastructure like banks, making cash the primary medium of exchange.
- Agriculture, one of the largest employment sectors, relies heavily on cash-based transactions for low-value exchanges between uneducated and rural laborers.
- The large rural population and lack of access to banks in many areas necessitates dependence on cash.
- However, widespread cash transactions also contribute to the growth of an underground black market economy where transactions go unreported to evade taxes. Efforts are being made to increase non-cash transactions to curb this issue.
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.
Demonetization Impact on Black Money Counterfeit Currency and CorruptionSyed Mahmood Ali
It's been about 6 months since the decision of
Demonetization of higher denomination no tes of Rs 500 and
1000 withdrawn from the circulation and new currency notes
of Rs. 500 and 2000 issued for means of exchange. The
decision to withdraw 86 per cent of the cash in circulation has
thrown India into peril. Such a big and unexpected policy
change naturally carries with it a large collateral damage at
least in the short run where in India large section of the
economy is comprised of the informal or unorganized sector
which runs on cash.
The aim of this paper is to through the light on how,
demonetization decision show impact on Black money,
Counterfeit currency and Corruption in the country. In this
paper it will be analyzed to see whether the said objectives by
the Prime minister of India Mr. Narendra Modi are getting
accomplished after the decision.
Demonetization in India involved the removal of Rs 500 and Rs 1000 banknotes as legal tender. On November 8, 2016 Prime Minister Modi announced that these notes would no longer be accepted, aiming to curb corruption, black money, and terrorist financing. Citizens were given time to deposit the old notes in banks. While the move aimed to promote digitization and a cashless economy, it also led to cash shortages and economic slowdown in the short-term as cash transactions reduced. The impact on corruption, black money, and GDP growth remains debated, with both benefits and costs associated with this large-scale demonetization initiative.
The document provides background information on India's 2016 demonetization of 500 and 1000 rupee banknotes. It discusses the economic and political context for the move, details of the announcement including exchange procedures, allegations of prior information leaks, and impacts on the population.
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.
Start ups get boost up with demonetisation driveRakesh Singh
Recent Demonetisation drive launched by PM Narendra Modi has given a much needed boost to startups in online space. Fintech sector is of course largest gainer but others industries are not far behind.
Modi's decision to demonetize Rs. 500 and Rs. 1000 banknotes aimed to tackle black money, corruption, and the cash-based economy. It had both short-term negative impacts like cash shortages and long-term potential benefits like increased tax revenues and use of digital payments. While some praised the move for curbing crimes like human trafficking, others criticized long bank lines that led to deaths and difficulties for farmers and small businesses dependent on cash transactions. Overall assessments of demonetization's impacts are mixed.
Importance Of Cash Transactions In The Indian EconomySayali Saoji
Cash transactions play an important role in the Indian economy for several reasons:
- A majority of Indians, especially in rural areas, have low literacy levels and lack access to basic infrastructure like banks, making cash the primary medium of exchange.
- Agriculture, one of the largest employment sectors, relies heavily on cash-based transactions for low-value exchanges between uneducated and rural laborers.
- The large rural population and lack of access to banks in many areas necessitates dependence on cash.
- However, widespread cash transactions also contribute to the growth of an underground black market economy where transactions go unreported to evade taxes. Efforts are being made to increase non-cash transactions to curb this issue.
The document summarizes a presentation on demonetization in India. It provides background on demonetization, details what occurred on November 8th 2016 when India demonetized Rs. 500 and Rs. 1000 notes, and explains the reasons for demonetization including fighting black money, corruption, and fake currency. It discusses both the potential positive impacts such as increased transparency and attack on black money holders, as well as negative impacts like temporary cash shortages and inflation. It also outlines long term effects on the economy and digital transactions, and summarizes a Reserve Bank of India report on the effects of demonetization.
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 summarizes the key aspects of India's 2016 demonetization initiative. It begins with an introduction defining demonetization and noting that most transactions in India's economy were previously conducted with cash. The objectives of demonetization included combating inflation, corruption, and discouraging a cash system. Specific groups affected included farmers, daily wage workers, corrupt officials, small vendors, and foreign travelers. While demonetization caused short-term pains like long bank lines, its gains may include reduced fake currency, organized crime, and poverty over the long run. The presentation concludes by encouraging digital payments and not participating in corruption to support the initiative's goals.
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..
India is facing demonetization problem then what is affect on development of human life. Main thing What is contribution's our.
It is not first time our country is facing demonetization probele.But important thing we should face this problem with a unity.
The document discusses India's demonetization of 2016 where the government removed the 500 and 1000 rupee banknotes from circulation. This represented 85% of cash in circulation. The goal was to eliminate counterfeit money, reduce tax evasion by pushing towards digital payments, and increase banking system usage. Initially there were negative economic impacts as cash was limited and digital payment infrastructure wasn't ready. However, long term benefits included increased digital payment adoption, more people opening bank accounts, and potential reduction in counterfeit money and tax evasion. One year later debates continue on impacts while digital payments continue growing in India.
This document summarizes the impacts of India's 2016 demonetization policy on common people. It discusses both the favorable and unfavorable impacts. The favorable impacts included increased bank deposits, elimination of fake currency, reduced inflation, and increased digital transactions. However, the negative impacts included loss of business and jobs for small businesses and daily workers, liquidity issues for firms, and hardship for those in the informal economy. While demonetization aimed to target black money, the conclusion argues that the sudden execution created more short-term negative impacts for honest citizens than benefits.
This document summarizes the impacts and debates around India's demonetization policy announced in November 2016. It discusses both the perceived benefits such as curbing black money and terrorism financing, as well as significant short-term costs including inconvenience, job losses, and impact on farmers and daily wage earners. While the policy aims for long-term goals of a cashless economy and banking sector reforms, the document argues the implementation faced hurdles due to India's scale and lack of digital infrastructure, and that other enforcement measures could have been pursued instead of or in addition to note ban.
The document discusses India's demonetization of ₹500 and ₹1000 currency notes in November 2016. It provided background on demonetization, its goals of combating corruption, black money and counterfeiting. It summarized the Indian government's announcement removing the two notes from legal tender and replacing them with new ₹2000 and ₹500 notes, while retaining lower value notes. It also discussed some short term effects of cash shortages and economic slowdown as well as both benefits of reducing black money and challenges of implementing such a large scale policy change.
This document summarizes a market research project on the effects of demonetization in rural areas. An 18-person team was assembled by an NBFC to study the impact across six districts in Maharashtra. The team divided into six groups, with each group interviewing manufacturers, dealers, and people in rural areas using a questionnaire. The objective was to understand how demonetization affected the NBFC's largely rural customer base, as 70-80% of transactions in rural areas are cash-based. The project provided learning experiences for the team members in leadership, coordination, teamwork, professionalism, and interacting with customers.
A study on understanding the concept of demonetization with reference to MBA ...Syed Valiullah Bakhtiyari
This research is fully based on primary data and it has been collected first hand by the researcher itself, since the respondents were students pursuing master's in business administration it becomes very interesting to know the new age jargon of demonetization.
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
- 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.
Universally governments operating money as commodity (1)Abraham Paul
Demonetization is Archaic. Governments collecting of TAX on rightfully hard earned Money of ordinary Citizen is Mediaeval.
No one can stop advancement of Technology and the disruptive paths it create. However, there has to be a way to tackle it and half baked solutions like Demonetization are of no help. The way to go is to walk, and walk the full way with disruptive technology converting it an advantage.What hurts Economy most is not Black Money alone but also large portion Money being guzzled up and converted into its virtual form by fast mushrooming e-money businesses creating parallel economy of a black hole of Virtual Money draining Banks hurting liquidity and eventually disrupting Nation’s economy. Forewarned is forearmed.
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.
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.
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 summarizes the benefits of shifting to a cashless economy in India. It discusses how digital payments provide convenience compared to cash transactions. It also outlines various discounts and incentives offered by the government to promote cashless transactions, such as discounts on fuel purchases, railway tickets, insurance premiums, and highway tolls. Additionally, the document states that digital payments allow for easier tracking of expenditures compared to cash transactions.
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............
Issues in cash transactions under the Income Taxt Act, 1961Prashanth G S
This document discusses various sections of the Indian Income Tax Act relating to unexplained expenditures and cash credits. It provides explanations of Sections 40A(3), 40A(3A), 68, 69A, 269SS and 269T. For each section, it outlines the key provisions, issues that may arise in their application, and important court decisions related to their interpretation and implementation. The majority of the document focuses on Sections 40A(3), 40A(3A), and 68, explaining the conditions that trigger their application and the burden of proof requirements they impose on taxpayers.
This project report summarizes the working and trading procedures of the Indian stock market with reference to Anand Rathi, a leading Indian brokerage company. It provides an overview of Anand Rathi, including that it was founded in 1994 and offers various financial products and services. It also describes key aspects of the stock market like the primary and secondary markets, stock exchanges in India, SEBI, opening a demat account, online and offline trading, derivatives, commodities, mutual funds, insurance, and portfolio management.
The document summarizes a presentation on demonetization in India. It provides background on demonetization, details what occurred on November 8th 2016 when India demonetized Rs. 500 and Rs. 1000 notes, and explains the reasons for demonetization including fighting black money, corruption, and fake currency. It discusses both the potential positive impacts such as increased transparency and attack on black money holders, as well as negative impacts like temporary cash shortages and inflation. It also outlines long term effects on the economy and digital transactions, and summarizes a Reserve Bank of India report on the effects of demonetization.
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 summarizes the key aspects of India's 2016 demonetization initiative. It begins with an introduction defining demonetization and noting that most transactions in India's economy were previously conducted with cash. The objectives of demonetization included combating inflation, corruption, and discouraging a cash system. Specific groups affected included farmers, daily wage workers, corrupt officials, small vendors, and foreign travelers. While demonetization caused short-term pains like long bank lines, its gains may include reduced fake currency, organized crime, and poverty over the long run. The presentation concludes by encouraging digital payments and not participating in corruption to support the initiative's goals.
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..
India is facing demonetization problem then what is affect on development of human life. Main thing What is contribution's our.
It is not first time our country is facing demonetization probele.But important thing we should face this problem with a unity.
The document discusses India's demonetization of 2016 where the government removed the 500 and 1000 rupee banknotes from circulation. This represented 85% of cash in circulation. The goal was to eliminate counterfeit money, reduce tax evasion by pushing towards digital payments, and increase banking system usage. Initially there were negative economic impacts as cash was limited and digital payment infrastructure wasn't ready. However, long term benefits included increased digital payment adoption, more people opening bank accounts, and potential reduction in counterfeit money and tax evasion. One year later debates continue on impacts while digital payments continue growing in India.
This document summarizes the impacts of India's 2016 demonetization policy on common people. It discusses both the favorable and unfavorable impacts. The favorable impacts included increased bank deposits, elimination of fake currency, reduced inflation, and increased digital transactions. However, the negative impacts included loss of business and jobs for small businesses and daily workers, liquidity issues for firms, and hardship for those in the informal economy. While demonetization aimed to target black money, the conclusion argues that the sudden execution created more short-term negative impacts for honest citizens than benefits.
This document summarizes the impacts and debates around India's demonetization policy announced in November 2016. It discusses both the perceived benefits such as curbing black money and terrorism financing, as well as significant short-term costs including inconvenience, job losses, and impact on farmers and daily wage earners. While the policy aims for long-term goals of a cashless economy and banking sector reforms, the document argues the implementation faced hurdles due to India's scale and lack of digital infrastructure, and that other enforcement measures could have been pursued instead of or in addition to note ban.
The document discusses India's demonetization of ₹500 and ₹1000 currency notes in November 2016. It provided background on demonetization, its goals of combating corruption, black money and counterfeiting. It summarized the Indian government's announcement removing the two notes from legal tender and replacing them with new ₹2000 and ₹500 notes, while retaining lower value notes. It also discussed some short term effects of cash shortages and economic slowdown as well as both benefits of reducing black money and challenges of implementing such a large scale policy change.
This document summarizes a market research project on the effects of demonetization in rural areas. An 18-person team was assembled by an NBFC to study the impact across six districts in Maharashtra. The team divided into six groups, with each group interviewing manufacturers, dealers, and people in rural areas using a questionnaire. The objective was to understand how demonetization affected the NBFC's largely rural customer base, as 70-80% of transactions in rural areas are cash-based. The project provided learning experiences for the team members in leadership, coordination, teamwork, professionalism, and interacting with customers.
A study on understanding the concept of demonetization with reference to MBA ...Syed Valiullah Bakhtiyari
This research is fully based on primary data and it has been collected first hand by the researcher itself, since the respondents were students pursuing master's in business administration it becomes very interesting to know the new age jargon of demonetization.
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
- 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.
Universally governments operating money as commodity (1)Abraham Paul
Demonetization is Archaic. Governments collecting of TAX on rightfully hard earned Money of ordinary Citizen is Mediaeval.
No one can stop advancement of Technology and the disruptive paths it create. However, there has to be a way to tackle it and half baked solutions like Demonetization are of no help. The way to go is to walk, and walk the full way with disruptive technology converting it an advantage.What hurts Economy most is not Black Money alone but also large portion Money being guzzled up and converted into its virtual form by fast mushrooming e-money businesses creating parallel economy of a black hole of Virtual Money draining Banks hurting liquidity and eventually disrupting Nation’s economy. Forewarned is forearmed.
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.
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.
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 summarizes the benefits of shifting to a cashless economy in India. It discusses how digital payments provide convenience compared to cash transactions. It also outlines various discounts and incentives offered by the government to promote cashless transactions, such as discounts on fuel purchases, railway tickets, insurance premiums, and highway tolls. Additionally, the document states that digital payments allow for easier tracking of expenditures compared to cash transactions.
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............
Issues in cash transactions under the Income Taxt Act, 1961Prashanth G S
This document discusses various sections of the Indian Income Tax Act relating to unexplained expenditures and cash credits. It provides explanations of Sections 40A(3), 40A(3A), 68, 69A, 269SS and 269T. For each section, it outlines the key provisions, issues that may arise in their application, and important court decisions related to their interpretation and implementation. The majority of the document focuses on Sections 40A(3), 40A(3A), and 68, explaining the conditions that trigger their application and the burden of proof requirements they impose on taxpayers.
This project report summarizes the working and trading procedures of the Indian stock market with reference to Anand Rathi, a leading Indian brokerage company. It provides an overview of Anand Rathi, including that it was founded in 1994 and offers various financial products and services. It also describes key aspects of the stock market like the primary and secondary markets, stock exchanges in India, SEBI, opening a demat account, online and offline trading, derivatives, commodities, mutual funds, insurance, and portfolio management.
Loans & deposits as per new companies act 2013Raghav Madhavan
The document discusses the key changes in the Companies Act, 2013 regarding loans and deposits for companies. Some of the main points covered are:
1) Private companies can now only borrow from directors and financial institutions, removing shareholders and relatives of directors from the list of permitted lenders.
2) Strict limits are placed on accepting deposits, with private companies only allowed to accept from directors. Compliance with additional rules is required to accept deposits from non-directors.
3) Loans to directors and other interested parties are prohibited, with some exceptions. Shareholder approval is required if total borrowings exceed paid-up capital and reserves.
4) Strict rules also govern acceptance of deposits from the public, including
There are four main types of assessments under the Income Tax Act: 1) Self-assessment where the taxpayer calculates their own liability; 2) Regular assessment where the tax authority scrutinizes around 2-3% of returns filed; 3) Best judgment assessment where the authority assesses tax based on their judgment if the taxpayer does not file a return or provide complete information; 4) Reassessment where the authority re-examines a taxpayer's income if they believe income was previously missed based on new evidence or records. The document then provides details on the procedures and conditions for each type of assessment.
There are several types of assessments for income tax: self-assessment, where taxpayers pay taxes based on their own returns; regular assessment, where the tax authority informs taxpayers of taxes owed based on their returns; best judgement assessment, where the tax authority estimates taxes owed if a taxpayer's return is incomplete or inaccurate; income escaping assessment, where the tax authority assesses previously unreported income; and precautionary assessment, where the tax authority determines responsibility for tax when it is unclear who received the income.
This document provides an overview of money laundering and financing of terrorism. It defines money laundering and outlines the three main stages of the money laundering process: placement, layering, and integration. It also discusses the global scale of money laundering, common predicate crimes, and legal and illegal sources of terrorist financing. Challenges in combating money laundering are presented, along with an overview of international anti-money laundering organizations and initiatives.
This is my presentation about what is money laundering crime and what is the role of financial institutions in the fight against it. I used it during my speech for a bunch of Business School Students (ISM).
Money laundering refers to disguising illegally obtained money to make it appear legitimate. It involves three steps - placement, layering, and integration. Criminals like drug dealers, mobsters, corrupt politicians, and terrorists engage in money laundering to hide the source and destination of funds from illegal activities. Key causes of money laundering include tax evasion, increasing profits from crime, and limited risks of exposure. Money laundering distorts economies, increases corruption and crime, undermines financial market integrity, and risks countries' reputations.
This document discusses Micro, Small, and Medium Enterprises (MSMEs) in India. It defines MSMEs based on the number of employees and investment levels. In India, MSMEs are defined by investment levels in plant/machinery or equipment, with micro enterprises having less than 25 lakh investment, small between 25 lakh to 5 crore, and medium more than 5 crore to 10 crore. MSMEs make up 13 million units employing over 42 million people and contribute significantly to manufacturing, exports, and GDP. The government supports MSMEs through various schemes for credit, technology, marketing, exports, and cluster development.
The document discusses money laundering, including its definition, process, and risks. It defines money laundering as the process of converting illegal funds into legitimate funds and assets. The money laundering cycle involves placement, layering, and integration of funds to obscure their criminal origin. Risks to banks from money laundering include reputational, legal, operational, and concentration risks. Know-your-customer (KYC) norms and monitoring of suspicious transactions are important measures to deter money laundering.
The document summarizes the procedures for filing income tax returns in India. It discusses:
1) Voluntary returns that must be filed by companies, firms, individuals and HUFs meeting certain income thresholds.
2) Prescribed due dates and forms for different types of taxpayers. Companies and some individuals have a due date of September 30, while most individuals have a July 31 due date.
3) Rules for filing belated or revised returns within one year of the original due date or assessment date.
4) Additional requirements for charitable trusts, political parties, and certain institutions to file by specific due dates using Form ITR-7.
5) Details that must be included in
demonetization : impact on hawkers and vendorsTrishala Gautam
his is a presentation on impact of demonetization on hawkers and vendors. basically it is based on demonetization done on 8th nov 2016 by Indian PM Narndra madi...
it tells what was the impact of demonetization on hawkers and vendors and whether they were able to cover up or not at that time.
its a primary study
and sample size is low coz of limited time slot...
Demonetization triggered India's transition to a cashless economy. The document discusses the history of demonetization in India, the phases of the 2016 demonetization, and government initiatives to promote digital payments like incentives for cashless transactions. While going cashless offers advantages like reducing black money, changing cultural payment habits will take time given India's large population and some reliability issues with new digital systems. Overall, demonetization accelerated India's shift to a cashless economy, though a complete transition will be gradual.
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.
This document discusses cashless transactions in India. It begins by defining a cashless economy as one where transactions are made through electronic means like debit cards, credit cards, e-wallets, and direct bank transfers, rather than cash. The document then outlines various methods of cashless transactions available in India, including digital wallets, UPI apps, debit/credit cards, online bank transfers, and Aadhaar-enabled payments. It also discusses the objectives, benefits and limitations of promoting a cashless economy in India, such as increased transparency, reduced corruption, and challenges like digital illiteracy and lack of infrastructure in rural areas.
India is working towards becoming a cashless economy through initiatives like demonetization and promotion of digital payment methods. A cashless economy provides benefits like curbing black money, reducing printing costs, and enabling direct benefit transfers. However, challenges remain in fully transitioning India to cashlessness due to factors like limited digital infrastructure in rural areas and the technical unfamiliarity of many citizens. The Reserve Bank of India has outlined a vision for 2018 involving expanding access and convenience of electronic payments while ensuring security and customer protection as India progresses down the path of a less-cash society.
The Government of India's move to demonetise higher currency notes on 8th November jolted the nation and led to financial crisis, which is yet to be resolved. Fiinovation analysis the impact of demonetisation on social development sector.
Going cashless ? Bad for taxes cheats, privacy, poorCashlessSociety
The document discusses the debate around moving to a cashless society. It notes that while cash accounts for a small percentage of economic activity, its use is still important for many transactions, especially small purchases and among low-income individuals. Moving to a fully digital payment system could provide benefits like reduced costs, increased tax collection and financial transparency, but also risks like loss of privacy and greater control by governments and banks over individuals' finances. India's recent attempt to remove most cash from circulation highlighted challenges, as it severely disrupted the economy and informal sectors and negatively impacted many citizens in the short-term. Overall the transition away from cash is likely to be gradual and uneven rather than an abrupt change to a completely cashless system.
Study on-mobile-payments-deloitte reportShridhar Rao
India remains predominantly a cash-based economy, with over 65% of retail transactions conducted using cash. While non-cash payment methods like credit cards, debit cards, and mobile payments have grown, they currently account for a small portion of the market. The widespread distribution of retail outlets across urban and rural India, along with typically low-value transactions, make traditional card-based systems less viable compared to other countries. To truly enable non-cash payments at scale, India requires an innovative mobile-based solution tailored to its unique market characteristics and consumer needs.
India is predominantly a cash-based economy, with over 65% of retail transactions conducted with cash. This presents an opportunity for non-cash payment methods to tap into the growing middle class and their rising disposable incomes. While existing options like credit cards, debit cards, and mobile payments have seen some adoption, they currently only appeal to a small portion of consumers. There is a need for an innovative mobile payment system that meets the requirements of the Indian market and has widespread appeal.
Effects of Demonetization on Digital Marketing and E Payment Gatewayijtsrd
Demonetization is the demonstration of stripping a cash unit of its status as legitimate delicate. It happens at whatever point there is a difference in national cash The present structure or types of cash is pulled from course and resigned, regularly to be supplanted with new notes or coins. Now and again, a nation totally replaces the old cash with new money. Evacuating the legitimate delicate status of a unit of cash is an extreme mediation into an economy since it straightforwardly impacts the vehicle of trade utilized in every single financial exchange. It can help settle existing issues, or it can cause bedlam in an economy, particularly whenever attempted abruptly or all of a sudden. All things considered, demonetization is attempted by countries for various reasons. Demonetization alludes to Withdrawal of a specific type of cash from dissemination. Demonetization is fundamental at whatever point there is a difference in national money. The old unit of money must be evacuated and substituted with another cash unit. The cash was demonetized first time in 1946 and second time in 1978. On Nov. 2016 the cash is demonetized third time by the present Modi government. This is the strong advance taken by the govt. for the improvement of the economy and nation. In this paper I need to examine the effect of ongoing demonetization on the Indian framework. Atul Kumar Mishra | Dr. Rajesh Rathore ""Effects of Demonetization on Digital Marketing & E - Payment Gateway"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-4 , June 2019, URL: https://www.ijtsrd.com/papers/ijtsrd23879.pdf
Paper URL: https://www.ijtsrd.com/economics/financial-economics/23879/effects-of-demonetization-on-digital-marketing-and-e---payment-gateway/atul-kumar-mishra
The document discusses the transition to a cashless economy in India. It provides context on the growing adoption of electronic payments and need to reduce dependence on cash. The objectives are to understand the meaning of cashless transactions, analyze their impact on people in a particular area, and future trends. Research will use questionnaires and interviews of 50 randomly selected people in Basanti colony over two weeks. Key impacts discussed are more transparency in business, easier auditing, and increased e-payment usage for businesses. In education, donations and capitation fees accepting cash may decrease due to demonetization.
This article explores the impact of cash to cashless economy on the agriculture sector of our country where 75% of the people directly or indirectly involved in agriculture business. In India the cashless economy was broke through on 8th November 2016 the exact day of Demonetization. As of now in urban and rural areasthere has been ample scope to initialize the digital platform among farmers. Cash to cashless economy has made many farmers to changeover to digital platforms like RML Ag tech, Agro star,agrihuba and Bighaat, which are the digital platforms, provides services and products to the farmers. Even though farmers can call the son of the soil, agriculture is considered to be the backbone of India,their situation is critical after demonetization. Since it‟s rendered the farmers incapable of purchasing seeds and fertilizers for their winter crops. Thus rather than analyzing the cash to cashless and its impact to the agrarian economy. This paper is an attempt to understand e effectdemonetization had an India‟s the cashless economy and its impact on agriculture sector. Also in this isstudy based on secondary data,which is descriptive in nature and all the relevant all information gathered from journals, various magazines, books and websites.
The document discusses India's recent demonetization of Rs 500 and Rs 1000 currency notes. It provides background on previous instances of demonetization in India in 1946 and 1978. It outlines the rationale given by the Prime Minister for demonetization, including tackling black money, corruption, fake currency, and terrorist financing. It also discusses the short-term economic impacts and support and criticism of the move from various groups.
Cashless Transaction the Move towards Green Economyijtsrd
India is one of the fastest growing economy in the world with 6.1 percentage in 2019 and the 5th largest economy in terms of Nominal GDP. India is also a youngest country of the world with the average age of Indian is 27 years and due to this the industries are growing very high in India which lead’s more carbon emission and less greenery and taking this all in to the consideration India need to take some step to promote greenery and sustainable development even into economy. Keeping this in mind the Indian government is promoting Cashless Economy. The digital or cashless transactions has been started in India early 21st century with the launch on RTGS, NEFT, online banking. But it has been started being popular when E commerce and the Digital wallet is introduced among Elite Youth. On 8th of November 2016 the government of India has introduced Demonetisation on Old Indian currency of Rs.500 and 1000 Rupee Bank Note which boost cashless transaction in India. Initially there is lot of confusion about digital transaction benefits and drawbacks. The government is promoting digital transaction by promoting various digital platform like UPI, BHIM App. Dr. Kamlesh Kumar | Rohit Gupta | Prof. Sudhir Kr Sahu "Cashless Transaction the Move towards Green Economy" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-1 , December 2021, URL: https://www.ijtsrd.com/papers/ijtsrd47809.pdf Paper URL: https://www.ijtsrd.com/management/business-economics/47809/cashless-transaction-the-move-towards-green-economy/dr-kamlesh-kumar
The document summarizes research on the cashless economy in India. It discusses the benefits of moving to a cashless system such as increased GDP, financial inclusion, and reduced corruption. However, it also notes challenges in implementing a cashless economy in India including lack of infrastructure in rural areas, cybersecurity issues, and illiteracy. The literature review examines previous research on cashless payments and electronic transactions in India and other countries. Overall, the document aims to analyze the significant challenges to implementing a fully cashless economy in India.
CREATING AWARENESS FOR THE CASHLESS ECONOMY OF INDIAMalhari Survase
The dream of the cashless economy becomes unreal due to the lack of awareness of cashless economy and demerits of cash transitions. This paper aims to focus on the significance of awareness among the society for the cashless transitions and reduce the cash transitions. For the same paper, the data and information is collected from newspapers, articles, magazines,
internet websites, and expert interviews. The results of demonetization leads to the cashless economy but its effectiveness decreased due to the lack of awareness among the society and created the need of awareness the betterment of Indian economy.
This document discusses India's transition to a cashless society through currency demonetization. It outlines what a cashless society entails, the major drawbacks of cash, and challenges to implementing a cashless payment system. It also details how demonetization has boosted cashless payments in India by necessity, with companies like Paytm seeing major increases in digital transactions. However, moving to a fully cashless economy still faces constraints like lack of banking access, internet connectivity issues, and cost barriers to digital payment infrastructure for merchants.
As more and more transactions go digital, or plastic so to say, we look towards the future with a model that does away with currency notes and coins altogether and yet keeps alive the essential principle that money serves, without attaching any tangibility to it.
Cashless Economy and its Impact on Modern Society.Raghav kulkarni
The following Paper Illustrates the effects of Cashless Economy and how this payment methodology influenced modern day Society and How has Cashless economy influences a countries Growth.
Similar to Importance of cash transactions in the indian economy (20)
Cashless Economy and its Impact on Modern Society.
Importance of cash transactions in the indian economy
1. IMPORTANCE OF CASH TRANSACTIONS
IN THE
INDIAN ECONOMY
By Sayali Saoji
Cash refers to money in the physical form of currency, such as bank notes and
coins.In book keeping and finance, "cash" refers to current assets comprised of
currency or currency equivalents that can be accessed immediately or near-
immediately (as in the case of money market accounts). Cash may be defined as
any legal medium of exchange that is immediately negotiable and free of
restrictions. An essential requirement is that it must be immediately available as
legal tender; therefore, loans to employees, postage stamps and fixed period
deposits cannot be regarded as 'cash' since they are subject to conversion
before they are available as cash.
We know that a transaction can be a cash, credit or a cheque transaction. Cash
is legal money, credit is an optional way and cheque is bank money. Cash can
further be classified into notes and coins. Usually, notes are used for higher
denominations of money and coins for smaller ones. So a cash transaction today
will imply a transaction wherein the medium of exchange are notes and coins.
Before the introduction of coins and notes, a variety of objects were used as
money. For example, since the very early ages, Indians used grains and cattle as
money. Thereafter came the use of metallic coins – gold, silver, copper coins – a
phase which continued well into the last century. And now with the advent of
plastic money, cash transactions has taken an entirely different form.
Ours is a cash based society and the reasons are simple and ample. Analysing
the statistics regarding some important human development factors and certain
facts regarding macroeconomics will help us know the influence of these
characteristics on the magnitude of cash transactions in the Indian economy.
According to the Census of India 2001, the overall literacy rate in India is just
61%. And this is marked by extreme regional variations.There is an absolute
contrast of high education levels in Kerela (90.92%), Maharashtra (77.27%),
Pondicherry (81.49%), Mizoram (88.49%), Delhi (81.82%), Chandigarh (81.76%)
and Goa (82.32%) to very poor levels as in Bihar (47.53%), Uttar Pradesh
2. (57.36%), Jammu and Kashmir (54.46%), Arunachal Pradesh (54.74%) and
Jharkhand (54.13%). Lower the literacy rate, the greater is the predominance of
cash transactions. This is due to the fact that if such countless millions of Indians
do not know how to read or write or count, opening and operating a bank account
is a too far fetched concept for them. So uneducated folks live with cash and also
have a stong belief in it.
Rural population is estimated to be 72.2% of the total population! This means
more than half of the Indian citizens live in rural areas.The rural population
outnumbers the urban population by a huge margin. And in India, these places
do not even have the essential facilities – a doctor, hospital, school, post office;
let alone a bank. That is why village and town dwellers depend on cash
transactions.
Coming to Indian economy; it consists of three sectors - the agricultural,
manufacturing and service sectors. Agriculture includes cultivation and allied
activities, animal husbandry, horticulture, etc. The industrial (or manufacturing)
sector is classified into small, medium and large categories. Services include
banking, warehousing, transportation, communication, advertising and
information technology (IT) services, etc. Here, worth noting is the fact that even
though the agricultural sector contributes least to the overall GDP of the nation, it
stands as the highest employer of human workforce with around 60% of the total
working population of the country engaged in it. Most of the transactions in this
sector are dependent on cash as majority of the agricultural labourers are poor,
uneducated and living in hinterlands. Almost all the transactions here are low
valued and so cash is the most convenient and easy form of medium of
exchange in such a circumstance.
Hardship is evident everywhere in our nation. Common people, on any given
day, just to survive, spend a great deal of time doing essential activities: working
or begging to make the ends meet, walking miles to fetch water, waiting in line to
catch a train or a bus to go to work or different places, waiting in line to buy basic
things like ration, dairy products, vegetables, fuel for cooking, waiting in line to
see doctors or buy medicines, if they are sick; and many more of a similar nature.
In the midst of all these activities, many of us do not even have the time or the
means to go to a bank and then once at a bank, standing and waiting in line to
deposit or withdraw money or both. That is why people live with cash. Even
though modern facilities like online banking have been introduced, they are
highly inadequate to help the vast population of India. For instance, the basic
necessity like the internet connectivity is not available in the remote areas. The
3. places where the required infrastructure is provided; people are devoid of the
knowledge to extract the benefit out of them ie there is no knowledge utility.
It costs money to avail bank and credit facilities. A bank customer has to pay for
the miscellaneous bank charges which are imposed for its services. For a
reputed financial institution‘s or a bank‘s credit, customers need to climb the
prison walls of collateral. Also in backward areas, illiterates are exploited with
high interest rates. Thus majority of the citizens find cash, as a medium of
exchange, free of hassles. It takes time to become a cheque-and-credit card
society. At present many people and businesses do not accept cheques or credit
cards.
Thus the above points highlight the importance of cash transactions in the India
economy given the quantum of citizens prefering and dependent on the cash
route. Cash in this perspective has been looked at a much larger scale and
therefore cash in bank has been considered as good as cash in hand.
But however there is a serious drawback in the mode of cash transactions and
that is regarding ‗black money‘. We buy and sell things with cash. Now, the
businesses that receive cash from selling their products or services often do not
record or report it in order to pay taxes on it. Similarly, people who receive cash
as bribe or baksheesh or salary, do not record or report it in order to avoid having
to pay taxes on it. And the higher the number of cash transactions, the greater
the probability of not reporting them to the government. This phenomenon is
unavoidable in a cash based society. It is hard to know the total supply of black
money in India, but it is easy to know its importance. For example, it is
impossible to complete large transactions such as buying or selling of a house,
building or land without it.
As to its circulation, back in 2006 on December 8, the then Indian finance
minister P.Chidambaram told Lok Sabha that there was no exact estimate of
black money in circulation. Its estimates vary from economist to economist, from
estimator to estimator, and from time to time.
Here are some estimates: Social Scientist wrote in its issue of August 1972 that
according to Wanchoo Committee nearly Rs.1400 crore were unreported in
1968-69 to evade tax and as a result of this evasion, tax revenue of Rs. 470
crore were lost for that year. In the Illustrated Weekly of India of October 25,
1981, Nani Palkhiwala, a former ambassador to the United States, cited an
estimate that each year Indian economy generated nearly Rs. 12,000 crore of
4. black money. The National Institute of Public Finance and Policy ranged it to be
between Rs. 31,584 crore and Rs. 36,786 crore during 1983-84. As recent as
year 2008, Indian newspapers reported that Rs. 70,00,000 crore are in
Switzerland banks — it couldn‘t be all black. No one knows the accuracy of any
of these statistics, but they are mind-boggling and show that black money is
growing.
Also, the estimates of the underground economy as a percentage of GDP vary
considerably. Poonam Gupta and Sanjeev Gupta wrote in Economic and Political
Weekly of January 16, 1982 that for the year 1967-68 the black economy
―constituted 9.5 percent of the official GNP… however, by 1978-79 the amount
had jumped to nearly half of the official GNP.‖ Since then some economists have
estimated that unreported economy grew from 20 percent of GDP in 1980s to 40
percent in mid 1990s. Again, no one knows the accuracy of any of these
statistics, but they show that the underground economy is booming.
So what should be done to prevent black economy from growing, keeping in
mind the importance of cash transactions?
According to me, the corporate income tax should be abolished or minimized.
Other different taxes can be levied due to which the total payment by a firm, at a
given instance can be reduced. Businesses merely add their cost of income tax
to their prices of products or services they sell. It is the consumers who have to
compensate for this in terms of higher prices of goods. By freeing businesses
from the burden of income tax, citizens will have more time and energy to devote
to their products, to make them better and cheaper, and to compete with other
businesses. These actions, in a free market economy, will cause prices of
products and services to go down.
The government has tried numerous solutions to flush out black money. It
lowered income tax rate; it gave amnesty to people who disclosed funds
voluntarily; it raided peoples‘ homes and businesses; it made tax laws
tougher. But it is illusory to believe that raids, tax laws, and schemes will reduce
or eliminate the black money. On discussion with some Chartered Accountants, it
has also been gathered that a provision has been made in the Income Tax Act
according to which bar traders and businessmen have to reduce the number of
cash transactions in their daily routine which in turn will inhibit the growth of
parallel black economy.
5. The basic elements of the financial system were established during British rule
(1757-1947). The national currency, the Rupee, had long been used domestically
before independence and even circulated abroad. And now, Reserve Bank of
India being a central bank (from a private bank earlier), it is playing a very crucial
regulatory role and hence ensuring safety and confidence of common man.
In the recent times, with the changing scenario worldwide, cash has taken a very
broader position; unimaginable a couple of years back- which is the ‗plastic
money‘, popularly known as credit, debit and ATM cards. ―Charge it!‖ has
become like a fashion statement and it is commonly heard in various service
establishments like malls, multiplexes and hyper markets. People buying food or
shopping for clothes using their credit cards has now become a trend. To sum it
in a line, a credit card provides you with convenience, safety, more purchasing
power and a host of fringe benefits. What‘s more, credit cards today have
assumed different avatars. You have Add-on cards (for a family member), ATM
cards (to withdraw instant money), co-branded cards, petrol cards (Citibank +
Indian Oil, for instance in India) debit cards, smart cards ---- the innovations are
endless. You get more too. Most cards offer privileges like free insurance,
discount coupons and invitations to exclusive events. Yes, for many the credit
card has become a vital necessity. By use of these plastic credentials, one need
not carry bulk or cash on person, but just a simple card is equivalent to loads of
cash on person. The idea of using a card to make purchases was first thought of
by Edward Bellamy in 1887. He wrote a book, ―Looking Backward‖, which
described his idea of a utopian society. In this book, he coined the term ―credit
card.‖ Since that time, advancements have been made that have allowed this
idea to become a reality. This is the achievement of the 21st century. Thus the
future is only the past which has entered through another gate.