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Open Data –
Currency& Payments
ER. JAMES WILSON
jamewils@gmail.com
https://decipherdemon.blogspot.in/
twitter.com/jamewils
Demonetisation 8th November 2016
Cash restrictions – Why?
Qty & Value of SBN –media mute!
When restrictions removed – No idea!
No change for new Rs. 2000 note
No Rs.500 Note anywhere
Composition of the denominations
Pivot denomination
Currency in Circulation increased
Total SBN demonetised 86.4%
₹500
• 17165 Million pieces (₹8.582 lakh crores)
₹1000
• 6858 Million pieces(₹6.858 lakh crores)
Currency Print Capacities - Yearly
Nashik -5800 million
Dewas – 2820 million
Mysore & Salboni – 16000 million
RTI revelations
2.4732 billion ₹2000 notes in stock8/11/2016
• ₹500 notes – nil stock
₹500 notes printing started23/11/2016
New HDN to be printed
₹2000
• 956 million
₹500
• 17165 million
Total
• 18121 million
Two Scenarios of Printing
Regular – 271 days
6th August 2017
Mysore & Salboni (2 shifts)
Nashik & Dewas (max)
66.90 million/day
Ultimate – 204 days
31st May 2017
Mysore & Salboni (3 shifts)
Nashik & Dewas (max)
88.82 million/day
Look at some recent figures
Currency on Circulation on 4/11/16 – 17,977 billion
SBN on Circulation on 8/11/16 – 15,440 billion
Lower Denomination on 8/11/16 – 2,557 billion
 Currency on Circulation on 13/01/17 – 9,508.03 billion
 HDN on Circulation on 13/01/17 – 7,251.03 billion (47%)
 HDN (₹2000 alone) on 8/11/16 – 4,946.4 billion
 HDN issued between 8/11/16 & 13/01/17 – 2,304.63 billion (66 days)
 Balance HDN to be issued – 8,188.97 billion (………..days?)
data is out and open…look for it
RBI
• Annual reports
• Reports of Working
Group
• Database on Indian
economy
• Press Releases &
Circulars
• Acts & Rules
Finance Ministry
• Committee/Study
Reports
• Gazette notifications &
circulars
• Annual Report of
SPMCIL
• FIU, CBCE, CBDT
Parliament
• Question & Answers of
Finance Ministry
• House Panel Reports
Enough info/reports are available in
the internet
 Study Reports by International agencies like World bank,
Visa, Master Card, Fletcher School, Boston Consulting
Group & Google, McKinsey, CDFI, IIT, etc
 Open Data bases of Central Statistical Organisation,
National Crime Record Bureau, etc
 Articles published in international financial journals
through Google Scholar
Currency- GDP ratio
Currency with Public Vs GDP
Currency vs Broad Money (M3)
Currency vs Broad Money
Factors effecting currency demand
 Economic, Economic, technological, cultural and sociological factors
that influence currency demand differ across countries.
 The cross-country variations in growth, inflation and interest rates,
the rate of direct and indirect taxes, the share of informal and
underground economy in the overall economic activity influences
 Organization of economic activity (viz., dominance of retail vis-à-vis
large-scale business), regulation of various modes of payment,
proportion of migrant workers, etc. are among the important
explanatory economic factors.
 The extent and type of financial innovations also impact currency
demand.
9 times Personal Consumption Expenditure (PCE) is
needed to reduce CIC-GDP ratio to 1%
VISA Study, October 2016
 Accelerating The Growth of Digital Payments in India
– 5 year outlook
 For a total investment of about INR 60,000 crores
over 5 years, India could reduce its cost of cash from
1.7% to 1.3% of GDP
 Further it could result in savings of about INR 70,000
crores over the next five years.
 Increase the numbers of acceptance points to about
4 million
 Add about 40.9 million households to the financial
system.
Cash - some final words
 For last 2600 years cash is the dominant form of
transaction globally
 Challenging the behaviour of use of cash is like
replacing fire or wheel
 Choice should be left to the stake holders whether
they want to transact with cash or digital form
 Currency represents unique combination of security,
liquidity and privacy
Where is open data in payments? How do I analyze it?

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Where is open data in payments? How do I analyze it?

  • 1. Open Data – Currency& Payments ER. JAMES WILSON jamewils@gmail.com https://decipherdemon.blogspot.in/ twitter.com/jamewils
  • 2. Demonetisation 8th November 2016 Cash restrictions – Why? Qty & Value of SBN –media mute! When restrictions removed – No idea! No change for new Rs. 2000 note No Rs.500 Note anywhere
  • 3. Composition of the denominations
  • 6. Total SBN demonetised 86.4% ₹500 • 17165 Million pieces (₹8.582 lakh crores) ₹1000 • 6858 Million pieces(₹6.858 lakh crores)
  • 7. Currency Print Capacities - Yearly Nashik -5800 million Dewas – 2820 million Mysore & Salboni – 16000 million
  • 8. RTI revelations 2.4732 billion ₹2000 notes in stock8/11/2016 • ₹500 notes – nil stock ₹500 notes printing started23/11/2016
  • 9. New HDN to be printed ₹2000 • 956 million ₹500 • 17165 million Total • 18121 million
  • 10. Two Scenarios of Printing Regular – 271 days 6th August 2017 Mysore & Salboni (2 shifts) Nashik & Dewas (max) 66.90 million/day Ultimate – 204 days 31st May 2017 Mysore & Salboni (3 shifts) Nashik & Dewas (max) 88.82 million/day
  • 11. Look at some recent figures Currency on Circulation on 4/11/16 – 17,977 billion SBN on Circulation on 8/11/16 – 15,440 billion Lower Denomination on 8/11/16 – 2,557 billion  Currency on Circulation on 13/01/17 – 9,508.03 billion  HDN on Circulation on 13/01/17 – 7,251.03 billion (47%)  HDN (₹2000 alone) on 8/11/16 – 4,946.4 billion  HDN issued between 8/11/16 & 13/01/17 – 2,304.63 billion (66 days)  Balance HDN to be issued – 8,188.97 billion (………..days?)
  • 12. data is out and open…look for it RBI • Annual reports • Reports of Working Group • Database on Indian economy • Press Releases & Circulars • Acts & Rules Finance Ministry • Committee/Study Reports • Gazette notifications & circulars • Annual Report of SPMCIL • FIU, CBCE, CBDT Parliament • Question & Answers of Finance Ministry • House Panel Reports
  • 13. Enough info/reports are available in the internet  Study Reports by International agencies like World bank, Visa, Master Card, Fletcher School, Boston Consulting Group & Google, McKinsey, CDFI, IIT, etc  Open Data bases of Central Statistical Organisation, National Crime Record Bureau, etc  Articles published in international financial journals through Google Scholar
  • 16. Currency vs Broad Money (M3)
  • 18. Factors effecting currency demand  Economic, Economic, technological, cultural and sociological factors that influence currency demand differ across countries.  The cross-country variations in growth, inflation and interest rates, the rate of direct and indirect taxes, the share of informal and underground economy in the overall economic activity influences  Organization of economic activity (viz., dominance of retail vis-à-vis large-scale business), regulation of various modes of payment, proportion of migrant workers, etc. are among the important explanatory economic factors.  The extent and type of financial innovations also impact currency demand.
  • 19. 9 times Personal Consumption Expenditure (PCE) is needed to reduce CIC-GDP ratio to 1%
  • 20. VISA Study, October 2016  Accelerating The Growth of Digital Payments in India – 5 year outlook  For a total investment of about INR 60,000 crores over 5 years, India could reduce its cost of cash from 1.7% to 1.3% of GDP  Further it could result in savings of about INR 70,000 crores over the next five years.  Increase the numbers of acceptance points to about 4 million  Add about 40.9 million households to the financial system.
  • 21. Cash - some final words  For last 2600 years cash is the dominant form of transaction globally  Challenging the behaviour of use of cash is like replacing fire or wheel  Choice should be left to the stake holders whether they want to transact with cash or digital form  Currency represents unique combination of security, liquidity and privacy