India Demonetization: 99.3% of Money Returned

In a new report that the Indian government could be exposed to the deficit, the central bank revealed that 99.30% of the monetary currency was redistributed in November 2016.

According to the 2017 - 18 Annual Report published on Wednesday by the Reserve Bank of India, almost all rupees. 500 and rupees. At the present time 1000 thousand bills, which accounted for 86% of the currency, were monetized and exchanged for new currency or deposited in the bank. The government said earlier, but I expected it to be rupee. "Black money" of 4 to 5 trillion dollars will not return to the system, and the RBI has already said a non-monetizing note of 15.4 trillion rupees, Rs. I returned 15.3 trillion, just rupees. Clear 107 billion dollars

The central purpose of dramatic movements to monetize bills is to arrest citizens who have not applied for tax purposes or who gained unlawful and unexpected income. The government wants to influence the country's underground economy. However, almost all of the funds were repaid to the banking system, so cash shortages occurred for several months in the entire campaign that led to economic disorder, damaging the unorganized sector, and when printing new notes The cost of RBI doubled. The above results could not achieve its main purpose with some death.

Jayati Ghosh, economics professor at Jawaharlal Nehru University in New Delhi, said: "The current goal has not been achieved, the other goal is for terrorism and corruption," rather it is to deal with the informal economy, I do not think the country is still recovering from it " .

However, after democratization, the collection of income tax increased, and the government insisted that this was a big victory. It was said to be each of 209,000 non-reporters who recently deposited more than rupees. After receiving notification from the income tax authorities, a self-assessment tax of Rs. 64 billion was paid to 1 million old banknotes.

Nonmonetary policy has strengths and weaknesses, but I believe that it is difficult to hold unknown money for nonmonetary policies that help India become a country without corruption. Democratization allows the government to track money, anyone whose cash is unknown must submit PAN or statutory financial documents. With non-monetization, the government can obtain an income tax return. By illegalization, we prevented funds from being used for illegal or illegal acts such as terrorism. So far, the tax authorities can easily monitor and arrest people involved in money laundering, so banning the use of high value currencies can curb money laundering. The ban on specific currencies has reduced the circulation of counterfeit currency, mainly in the form of high-value notes. Democratization of 500 and 1,000 bills in India is welcomed by many people

The process of withdrawing money from distribution is called non-monetization. Since 8 November 2016, the term non-monetization has become very common in India. On the same day Prime Minister Narendra Modi suddenly declared extinction in India. This time is not the first time that democratization was done in China. As early as 1946 and 1978 democracy was already taking place in India. The government hopes to achieve some degree of economic growth domestically through non-monetaryization, but sudden announcement of non-monetization has caused a lot of confusion and confusion in the country. After the illegalization of about 15.44 lazy people, the noteworthy notes of Rs 500 and Rs 1000 are no longer legal bids. However, the government immediately issued only 10% to 12% of new bills, resulting in shortage of domestic cash. You can line up at the bank all day. For nearly a few months people in this country can not even use their own money. But then everyone is as usual as usual