No ‘less cash’ two years post note ban

Why is it in the news ?
  • 8 November 2018 completes the two years of demonetisation.
  • Prime minister 2 years back had announced that Rs.1,000 and Rs.500 currency notes would no longer be legal tender.
  • These notes constituted over 86% of the currency in circulation, then.
Background
Objectives of Demonetization in India were:

    1. To unearth and curb the black money.
    2. To track fake currency, to cutoff the terror funding.
    3. To transform Indian economy into cashless/Lesscash economy.
 
    1. ‘Less-cash’ society was one of the important objective of demonetization.
    2. However, two years down the line, it appears the objective has not been achieved.
    3. As per RBI data. with cash back in the system, ATM withdrawals have picked up.
    4. Cash withdrawals from ATMs grew 8% to Rs.2.75 lakh crore in August 2018 from Rs.2.54 lakh crore in October 2016.

Source
The Hindu.




Posted by Jawwad Kazi on 8th Nov 2018
<< Previous Next >>