MISINFORMATION ON DEMONETISATION
Ever since the Prime Minister announced demonetization of high value currency, there have been repeated reports that Indian economy has slowed down considerably.
While the government has pointed out that Rabi crop sowing has not slowed down and has only increased in the post demonetization period to highlight the fact that demonetization has no negative fundamental impact on growth and government has also pointed out that any slow down in other sectors are only temporary and not alarming, the media reports of note ban putting brake on the economy is persisting.
The latest news is that the two wheeler , passenger vehicle and commercial vehicle sale has slumped and declined due to the note ban.
The fact is that the demonetization only resulted in the withdrawal of high value currency notes. Transactions by cheque, bank transfers , credit/debit cards have continued without change.
The price of two wheelers , four wheelers are in the range of Rupees one lakh and above and there is no reason why such transactions should slow down because of demonetization. Obviously, this indicates that most of such transactions in the pre demonetization period have been taking place by cash (black money) and putting a brake on black money, hawala money and counterfeit notes have resulted in slow down in the sales of the automobiles.
This is precisely the objective of demonetization to reduce the role of black money in the economy and if the auto sales have really gone down after the demonetization shock, it only shows that the impact of black money in the economy has been considerably reduced and demonetization has a positive impact and is providing the expected results.
With the black money largely gone, the economy will be back on healthy growth path soon when the transparent deals would inevitably happen.
Thanks and regards
N.S.Venkataraman
Nandini Voice For The Deprived
nandinivoice.com more
While the government has pointed out that Rabi crop sowing has not slowed down and has only increased in the post demonetization period to highlight the fact that demonetization has no negative fundamental impact on growth and government has also pointed out that any slow down in other sectors are only temporary and not alarming, the media reports of note ban putting brake on the economy is persisting.
The latest news is that the two wheeler , passenger vehicle and commercial vehicle sale has slumped and declined due to the note ban.
The fact is that the demonetization only resulted in the withdrawal of high value currency notes. Transactions by cheque, bank transfers , credit/debit cards have continued without change.
The price of two wheelers , four wheelers are in the range of Rupees one lakh and above and there is no reason why such transactions should slow down because of demonetization. Obviously, this indicates that most of such transactions in the pre demonetization period have been taking place by cash (black money) and putting a brake on black money, hawala money and counterfeit notes have resulted in slow down in the sales of the automobiles.
This is precisely the objective of demonetization to reduce the role of black money in the economy and if the auto sales have really gone down after the demonetization shock, it only shows that the impact of black money in the economy has been considerably reduced and demonetization has a positive impact and is providing the expected results.
With the black money largely gone, the economy will be back on healthy growth path soon when the transparent deals would inevitably happen.
Thanks and regards
N.S.Venkataraman
Nandini Voice For The Deprived
nandinivoice.com more
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What Mr. NS Venkataraman says is absolutely correct. In fact the fact that some areas, like 2-wheeler, 4 wheeler, etc have reduced sales is clearly indicative of the fact that, most of these vehicles were being purchased by paying cash which may most likely have been a part of Black Money kept by individuals. It is simple to understand that what ever is needed by people will get purchased, even if the payment is made by cheques or by Credit/ Debit cards. I am quite sure even the jewellery industry, expensive Silk and Brocade saris, expensive shoes and expensive branded readymade clothing would face a reduction in sales. These were being purchased by people in cash on most occasions, since the black money had to be spent. That is also the reason for reduction in prices of Property/ real estate, since the buyers have reduced and only those who pay through Cheques are buying since they need the property. more
Jan 12
Demonetization is the first main step RBI & Government have initiated. It is surprising that most of the media persons & many Politicians are trying to inflate the claim for damage to economy & hardships faced by society. In a disguise they only want to insist high value transactions in Cash without any transparancy to Tax authorities. Therefore the government needs to put restrictions on Cash Transaction Limits immediately. This will be possible only when : 1) All the banks are advised by RBI not to charge Cashless transactions upto at least Rs2000. 2) All the Traders are given 100%deduction from Income Tax to Purchase & Install Card Swipe Machines from banks. 3) RBI insists the banks to enter into financial tie-ups with the Swipe Machine manufacturers & sell at 100 machines per month per branch for 12 months. 4) All the current or Overdraft account holders & Shop act licence holders have to buy & maintain at least one machine at any given time or else they will they will pay 1% more tax & pay penalty of Rs500 per year per account to bank. 5) Traders are given deduction of 2% from tax paid on the income received from Cashless transactions. more
Jan 12
COMMON MAN SUPPORTED DEMONETIZATION WITH THE HOPE BLACK MONEY WILL COME OUT AND THOSE HAVING BLACK MONEY WILL BE EXPOSED BUT SORRY TO SAY BANK OFFICERS, POLITICIANS AND BIG PLAYERS MADE THIS PLAN FAILED NOW IT IS THE GOVT RESPONSIBILITY TO FIND SUCH OFFICERS, POLITICIANS AND PLAYERS PUNISH THEM AND PUT THEM BEFORE PUBLIC ONLY FEW THOUSANDWITH FEW PEOPLE WERE SEIZED THIS IS NOT ENOUGH LARGE NUMBER OF PEOPLE WITH 3 TO 4 LAKHS THOUSAND RUPEE BE EXPOSED FURTHER FOREIGN BANK ACCOUNT ALSO TO BE OPENED WITH THE NAME OF PEOPLE BE OPEN IN PUBLIC more
Jan 12
Our PM is a person who is working for the Motherland every moment. He is with the Dharma, and, as such, there is no doubt that he will succeed. People with vested interests (with black money & benami assets, hoarders) will always try to misguide/mislead public but they will not succeed and will finally be compelled to surrender/join the mainstream or go to jail. more
Jan 12
