India’s controversial withdrawal of high value banknotes late last year has had an “adverse impact” on the economy, the government has admitted. The country’s Economic Survey, released on the eve of the national budget, said the measures had slowed growth. The dramatic move to scrap 500 ($7.60) and 1,000 rupee notes was intended to crack down on corruption and so-called black money or illegal cash holdings. But it also led […]

Centre is mulling a threshold for deposits made into banks post demonetisation below which scrutiny will not be initiated. The government is considering the proposal to prevent undue harassment of taxpayers during investigations into bank deposits between November 10 and December 30, reports Times of India. As elections to five state assemblies near, the government is being observant to avoid any bad publicity resulting from honest deposits being questioned. The proposed […]

Accusing Prime Minister Narendra Modi of being anti-Hindu, senior members of Akhil Bharatiya Hindu Mahasabha have said that the Centre’s demonetisation move would be the beginning of the end of his rule. The saffron organisation alleged that the policy had been introduced just before the start of the Hindu wedding season while BJP members were encouraging Islamic banks in the country. Questioning the government’s currency move, Mahasabha’s national general secretary […]

The Public Accounts Committee (PAC) of Parliament can call Prime Minister Narendra Modi on the issue of demonetisation if it is not satisfied with the answers given by top finance ministry officials and the RBI governor Urjit Patel. The committee had sent a detailed questionnaire to Patel regarding demonetisation. A PAC meeting on this issue has been called on January 20th, in which Patel, finance secretary Ashok Lavasa and economic […]

The Government of India knew the negligible share of non-demonetised currency (in total currency) in circulation on November 8, 2016: Rs 100 (9.61 per cent), Rs 50 (1.18 per cent) and others (2.83 per cent). Further, the government knew its capacity constraints on total remonetisation in a short time and the unpreparedness of the banking system to meet with after-demonetisation demand for cash by all sectors of the economy and […]

There is a trace of pride in Nisha Chaurasiya’s voice as she complains of how she and her co-workers in an anganwadi in Rajnandgaon district of Madhya Pradesh struggled to provide food to babies and children, and to expectant women, since demonetisation took effect on November 8. “The self-help groups borrowed money from everybody, stood in bank queues, pleaded with officials and even spent from their own meagre savings to […]

It is estimated that around 8% of the black economy is held in the form of cash. So, 8% of Rs. 75 lakh crore is held in cash. So, around Rs. 6 lakh crore of black money is held in cash. There are no official estimates of black money held in cash but experts on estimating black money such as Prof. Arun Kumar have estimated the amount at Rs. 6.5 […]

Experts said that the poor people will be impacted badly due to demonetization decision. The demonetisation move was going “to damage the economy in long term” and cash-less digital payment system “may not be helpful as being thought”, experts said on Monday. In a discussion on ‘State of the Indian Economy’, organised by India International Centre and Working Group on Alternative Strategies, the experts expressed serious concerns over efficacy of […]

Travelling after demonetisation is a tricky business. You are in a new place where no one is prepared to lend you a credit card and no one is willing to sell without the new currency. Try and book all-inclusive packages and check beforehand to ensure that your travel agent will accept cheques or credit and debit cards, says an expert.   Earlier this month, Prime Minister Narendra Modi made a […]

In another drastic move initiated by the government, the government has decided to end the window for exchange of currency notes at banks effective midnight today. The move, government sources said, was taken in view of several complaints of the facility extended by the government following the demonetisation move. In another development, the government has extended the deadline for use of demonetised Rs 500 notes for emergency services and basic […]