5 years of DeMo: Cash still dominant in property transactions
Most of the members of this circle know that LocalCircles actively predicted demonetisation and tracked it through the implementation. Since then every year we track cash usage, and discuss ways to reduce black money further. With your inputs, here is the link to this year's survey report which is actively covered by 10+ media outlets.
5 years of demonetisation - Cash and Black Money prevalence
If you have inputs on what can be done to reduce use of black money in property transactions, do share the same. more
5 years of demonetisation - Cash and Black Money prevalence
If you have inputs on what can be done to reduce use of black money in property transactions, do share the same. more
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If the government had to regularise taxes and the rates of taxes, then may be some change can be brought it. Frankly I find paying 18% GST for several essential items a burden. Only the government is benefiting so people try to avoid tax. If on the other hand, the tax is low, most people may readily pay the tax. Then if a person is caught withholding tax, he should be behind bars for 10 straight years. more
Nov 30
Demonetization of 2000 : 500 Notes and Limiting Cash to 2,000/- only will stop Blackmoney Transactions in Real Estate and other Businesses more
Nov 20
The whole demonitisation exercise was ill conceived and badly implemented. What was the need to introduce a Rs 2000 note? Declare this note as invalid unless deposited into a bank account before a stipulated date (in other words a mini-demonitisation). You will find most of the notes are with politicians, government babus and their cronies. more
Nov 20
We are regrettably a dishonest society, which, in fact, hounds honest citizen. We need this remedy of demonetisation repeatedly and the Government of the day must stand firm and should grant no concessions after announcing demonetisation. more
Nov 17
You are spot on in the matter of dishonesty. It is difficult to remain honest in India. Bankers were exchanging bundles of new currency for a commission during demon days for criminals and politicians while making genuine citizens suffer. Some of them were also part of RBI. Were they caught and put in jail? Not a chance. more
Nov 20
Demonetisation achieved NOTHING! Read RBI & SBI reports and then decide WHETHER TO PRAISE OR CONDEMN MODI!
1) India has slipped from 79th rank (in 2016) to 86th rank (in 2020) on the corruption scale. So much for reduction in corruption due to demonetisation!
2) Fake 2000-rupee notes have increased in circulation. FAKE 2000-rupee notes detected in the system after demonetisation doubled according to NCRB. 56% OF THE DETECTED FAKE CURRENCY WAS IN 2000-RUPEE NOTES. And, GUJARAT TOPPED THE LIST IN FAKE CURRENCY CIRCULATION! Even RBI ihas been forced to reduce the circulation of 2000-rupee notes by 27%.
3) Cash in circulation has grown back to its original volume by 99%. 86% of the cash in circulation was frozen (Rs 15.44 lakh crore) on 2016 November 8th. Of that volume, cash in circulation has returned by Rs 15.28 lakh crore. Even though digital and cashless transactions have increased by 30.2% in FY2021, cash-based transactions have ALSO INCREASED. Currency held by people was Rs 17.97 lakh crore on Nov 4, 2016. IT IS NOW AT ITS HIGHTEST NOW - Rs 28.30 LAKH CRORE AS ON OCTOBER 8, 2021.
4) Informal sector of the Indian economy has been devastated. Given that India's GDP was Rs 151.84 lakh crore in 2016-17, black money in terms of only 0.1% of India's GDP was finally removed. On the other hand, demonetisation reduce India's GDP by 1%!
Even today, Income Tax raids yield huge stocks of black money stacked away in cash.
According to SBI, the informal sector has shrunk from 52% of the GDP to 15% to 20% after digitalisation, GST and demonetisation.
5) Impact terrorist funding is not very clear. Maoist insurgency dropped from 263 incidents in 2016 to 138 in 2020. According to the same South Asian Terrorism portal terrorist incidents in J&K increased from 112 in 2016 to 206 in 2018! Yet at the same time, the number of incidents hovered between 70 and 86 per year from 2012 to 2015.
6) Even BJP does NOT claim this to be Modi's success story! BJP is silent on this. more
1) India has slipped from 79th rank (in 2016) to 86th rank (in 2020) on the corruption scale. So much for reduction in corruption due to demonetisation!
2) Fake 2000-rupee notes have increased in circulation. FAKE 2000-rupee notes detected in the system after demonetisation doubled according to NCRB. 56% OF THE DETECTED FAKE CURRENCY WAS IN 2000-RUPEE NOTES. And, GUJARAT TOPPED THE LIST IN FAKE CURRENCY CIRCULATION! Even RBI ihas been forced to reduce the circulation of 2000-rupee notes by 27%.
3) Cash in circulation has grown back to its original volume by 99%. 86% of the cash in circulation was frozen (Rs 15.44 lakh crore) on 2016 November 8th. Of that volume, cash in circulation has returned by Rs 15.28 lakh crore. Even though digital and cashless transactions have increased by 30.2% in FY2021, cash-based transactions have ALSO INCREASED. Currency held by people was Rs 17.97 lakh crore on Nov 4, 2016. IT IS NOW AT ITS HIGHTEST NOW - Rs 28.30 LAKH CRORE AS ON OCTOBER 8, 2021.
4) Informal sector of the Indian economy has been devastated. Given that India's GDP was Rs 151.84 lakh crore in 2016-17, black money in terms of only 0.1% of India's GDP was finally removed. On the other hand, demonetisation reduce India's GDP by 1%!
Even today, Income Tax raids yield huge stocks of black money stacked away in cash.
According to SBI, the informal sector has shrunk from 52% of the GDP to 15% to 20% after digitalisation, GST and demonetisation.
5) Impact terrorist funding is not very clear. Maoist insurgency dropped from 263 incidents in 2016 to 138 in 2020. According to the same South Asian Terrorism portal terrorist incidents in J&K increased from 112 in 2016 to 206 in 2018! Yet at the same time, the number of incidents hovered between 70 and 86 per year from 2012 to 2015.
6) Even BJP does NOT claim this to be Modi's success story! BJP is silent on this. more
Nov 18
