Demonetisation and its Aftermath

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RBI may be holding back printed ₹2,000 notes: SBI report

A part of the ₹2,000 denomination currency notes printed so far is possibly being held back by the central bank, a recent report from State Bank of India indicated. The high-value note was introduced for the first time last year after the withdrawal of ₹500 and ₹1,000 notes.

The report, authored by the bank’s chief economist, Soumya Kanti Ghosh, cited data submitted by Finance Ministry to the Lok Sabha which said the value of ₹2,000 notes were ₹7,308 billion as on December 8, while the value of small denomination currency in circulation up to March 2017 was ₹3,501 billion, according to RBI’s annual report.

“...it is safe to assume that ₹2,463 billion may be on the lower side as the RBI must have printed notes of small denomination in the interregnum (₹50 and ₹200),” it said. Mr. Ghosh said that as the ₹2,000 denomination led to challenges in transactions, it ‘seemed that RBI may have either consciously stopped printing’ these notes ‘or is printing them in smaller numbers after the initial print run to normalise the liquidity situation’.
 
From Demonetisation low, currency with public doubles, hits record at over Rs 18 lakh cr


Currency with the public has reached a record high level of over Rs 18.5 lakh crore, more than double from a low of about Rs 7.8 lakh crore it had hit post-demonetisation decision in late 2016, as per RBI data.

At the same time, the total currency put in circulation by the Reserve Bank has also more than doubled to over Rs 19.3 lakh crore -- from a low of about Rs 8.9 lakh crore post- demonetisation. Currency with the public is arrived at after deducting cash with banks from total currency in circulation.
 
^^meaning what ?

any hopes of online transactions only isn't going to happen any time soon. Cash is king like it always was
 
blr_p said:
^^meaning what ?

any hopes of online transactions only isn't going to happen any time soon. Cash is king like it always was
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It will always be Difficult for 100% online transaction.. unless paper notes completely vanished from system
 

Of course demonetization is a success. I mean look at this.
Screenshot_20180611-003404~2.png
 
Heh, i hold the anti-corruption atmosphere prevailing at the time to be responsible. This way the BJP gets to say they were the only party to attempt a serious move to curb black money. Bragging rights.

It's very difficult to assess what the effects of notes ban even was with the economy because there are so many others things that also play a part. Cause and effect is quite hard. Anything positive happens people say it was because of this or negative is the same.

It put people in trouble and caused hardship are the most visible signs. What were the positive effects other than political points scoring ?
 
Can't say this was evident with the karnataka elections. Congress didn't contest all constituencies, BJP did. But Congress still turned out a decent result

BJP 700 cr
Cong 200 cr

Assumes BJP has three times more to spend but only got 40% more seats and even then it wasn't enough?

Remember Trump had $1 bn less to spend than Hillary ;)
 
Julian said:
The Congress is facing a financial crisis ahead of 2019 General Elections: Bloomberg

Proof that demon... was a success.
Click to expand...


Demonetization did not effect political parties negatively at all.
They were allowed to deposit as much of currency notes as they could.
Many used this as a loophole.
Later, Jaitely told the country, political parties will never be asked about their funding.

Presently, CIC is trying to bring large political parties under RTI.
Govt is trying to lower the status of information commissioners.
And I believe our govt. will ultimately will do the same with the CIC and RTI Act.
 
I don't think this is entirely true. This may be hearsay, but there were reports of tons of cash burnt or discarded, it's not so easy to deposit massive quantities. Especially since the amount of money these guys have is unfathomable to us common folk.

Besides, the biggest proof that demon... was a fraud is who in their right mind would scrap 500s and 1000s and actually release 2000s ?

Now consider this possibility. You are the one scrapping old notes, and the new notes printing and release are completely in your control. Wouldn't you keep a secret stash of your own and then only declare and release the rest? This gives you a huge advantage over the rest of the field.

Anyway, this is only one of the ways BJP is way ahead of the rest in funds, the basic fact is that almost every big business house is sponsoring them. They're just following the system the Americans were doing for decades.
 
Corporate lobbying was legalised in India in the 80's. The problem is nobody wants their contributions to be known because then they will be at the mercy of the other party in case their horse loses.

So the idea that 'most business houses are sponsoring' only BJP is risky
 
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nimod said:
Demonetization did not effect political parties negatively at all.
They were allowed to deposit as much of currency notes as they could.
Many used this as a loophole.
Later, Jaitely told the country, political parties will never be asked about their funding.
Click to expand...

It is not the actual value of cash that is important. After all, how much money can you store in cash? Even 100 crore is a paltry sum for a politician, but it weighs 1.16 ton.

The money they have in cash is peanuts compared to their actual hoardings, so no political party will be effected directly because of it. However cash is also used during elections both to buy votes as well as the MLA's. This is where BJP tried to gain advantage by having unlimited cash access for themselves and removing the cash available to their opponents. BJP politicians even got cash shipped directly from the printers before they reached RBI.
 
Julian said:
Now consider this possibility. You are the one scrapping old notes, and the new notes printing and release are completely in your control. Wouldn't you keep a secret stash of your own and then only declare and release the rest? This gives you a huge advantage over the rest of the field.

Anyway, this is only one of the ways BJP is way ahead of the rest in funds, the basic fact is that almost every big business house is sponsoring them. They're just following the system the Americans were doing for decades.
Click to expand...

Lord Nemesis said:
This is where BJP tried to gain advantage by having unlimited cash access for themselves and removing the cash available to their opponents. BJP politicians even got cash shipped directly from the printers before they reached RBI.
Click to expand...

Demonetisation helped them win the 4 state elections afterwards. That's how they went from minority to majority.
Why do you think Modi spends so much time wooing NRI's and other Indian diaspora? They're a massive source of funding for the BJP. Plus, the donations are in $'s.
 
nimod said:
Forcing entire population into troubles for personal gains is not management. Its selfishness.
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Read what i said again, i don't know if notes ban helped them win the next 4 state elections. It's so inconclusive that you can argue either way which is just pointless to me

But if they managed their workers better than everybody that will win them elections
 
its clear notes ban isn't responsible, something else is. Foreign funding ? best part is how foreign can be changed into not foreign.

 
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