India’s central bank just proved demonetisation was for nothing

According to the annual report released today (August 29) by the Reserve Bank of India (RBI), a few months after the worsening in November 2016, the Indians deposited over 99% of the prohibited notes in the bank It was.

On November 8, 2016, when the Prime Minister Narendora Modi announced that 500 rupees and 1000 rupees were ineffective the next day, the two bills accounted for 86% of the total and accounted for 1.544 billion rupees in the Indian economy. Therefore, according to the RBI report, 15.31 million rupees were returned to the regulatory authority of the bank.

Recovery of these bonds caused a serious cash shortage in India and adversely affected economic growth. This bad hangover lasts a couple of months, as the company has been hit hard and over 1 million people are unemployed.

While the MODI government has stated the suppression of nonpublic assets as the main objective of this movement, it has made India an economy that is not tied to cash more.

After banning bills, digital transactions soared due to serious shortage of cash. However, the normal condition quickly recovered. "As of the end of March 2018, the value of paper money increased by 37.7% compared with the same period last year to 1,803 rupees," the latest RBI report said.

Experts pointed out that although e-commerce has increased, the speed expected by the government has not yet been reached.

Jayat Ghosh, professor of economics at Jawaharlal Nehru University in New Delhi, says, "The initial goal was not achieved, and other goals are also aimed at terrorism and corruption "On the contrary, it is to deal with informal economic activity, I do not think the country is still fully recovered."

Due to its landmark effect, 2016 is a wonderful year for India. Most of the cash was deposited in the bank before the deadline but 1600 rupees are still outside the system and the situation in the Indian economy seemed to be dark in half of the amount used to introduce new banknotes . However, as with all intentional efforts, demonization is accomplished by looking at many pre-planning and foresight. Refining the cash means that the queue is long, the trade market has temporarily declined, and we can not maintain the demand supply ratio for a considerable period of time. After suffering, ordinary people think positive influence. This direct response to this sudden change is a refusal by accusing the government against making weak decisions and guessing why it is necessary.

On 8th November 2016, the Government of India announced that it would aggravate all 500 pounds (7.00 dollars) and 1,000 pounds (14 dollars) notes of the Mahatma Gandhi series as recommended by the Reserve Bank of India (RBI). did. The government insists that this action limits the shadow's economy and fights the use of illegal acts and illegal and counterfeit cash to finance terrorism funds. To meet immediate cash requirements, old bills can be redeemed for new 500 pounds and 2,000 pounds bills and 100 notes at the bank branch counters by filling in the application form and valid identification I can do it. The facility announced it will be available by December 30, 2016

Transactions in the agricultural sector in India are highly dependent on cash and are affected by the deterioration of 500 pounds and 1,000 pound notes. Due to the shortage of new bank notes, many farmers do not have enough cash to purchase the seeds, fertilizers, pesticides needed for grain cultivation, usually planted in mid November. Farmers and their associations ordered against Gujarat, Amritsar and Muzaffar-Nagar states to protest against democratization and restrictions imposed by the Reserve Bank of the Regional Cooperation Central Bank, not to protest or exchange. bill