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  

View all 117 comments Below 117 comments
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  
Demonetization of 2000 : 500 Notes and Limiting Cash to 2,000/- only will stop Blackmoney Transactions in Real Estate and other Businesses more  
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  
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  
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  
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  
Before 8th Nov.2016, the currency in circulation was merely 15.5 Lac Crore and as on 15th Oct 2021 it is 29.52+ Lac Crore as per RBI Report attached more  
Lakhs of Crores Blackmoney is still in circulation since there is no check and seizure more  
Post a Comment

Related Posts

    • Financial Fraud happened with 42% of us

      An eye opening survey by our circle https://www.localcircles.com/a/press/page/bank-account-f...

      By Ajay Mittal
    • India going wrong on Monkeypox

      To put things in perspective, just the state of Florida added 244 new monkeypox cases in the last 24 hours, the biggest daily increase and an unusual one since the outbreak started. Monk...

      By Vishal Khanna
    • VIPs violate like its their right

      Details regarding traffic challan issued to North East Delhi MP Manoj Tiwari. Without Helmet (194-D) – 1000, Without License – (3/181) – 5000, Without PUCC – 115/190 (2) &nd...

      By Vijaya Nair
    • Personal Data Protection - Start from scratch

      Govt is going to withdraw the Personal DataProtection Bill, 2021 as reported by Joint Committee of Parliament (the 2019 Bill was introduced & referred to JCP which submitted its report last yea...

      By Shikha Mittal
    • The loot in health insurance premiums

      Brother Took a health insurance policy 4 years back from ICICI lombard. And this year's renewal amount (with zero claims so far) is 79% yes 79% higher than the original premium paid in 2018. You ca...

      By Rajesh Suri
    • Monkeypox is serious - Lockdowns may be needed globally

      Monkeypox in KIDS is just not just like your common COVID or even ‘flu. They are now in the high risk group for severe disease and are amongst the more vulnerable. Must watch attac...

      By Eliana Jacob
    • India’s approach on MPX failing

      We in LocalCircles have been saying since June to consider putting a stop on international flights to ensure monkeypox doesnt spread in India but these authorities in govt seem to be deaf.

      By B.D. Mukherjee
    • Long Covid employment and govt support policies

      An estimated 4 million workers in the U.S. are struggling to work because of debilitating symptoms from long COVID. The government is urging employers to provide accommodations to keep them on the ...

      By Ajay Dutta
    • Regulate Moneylenders

      Per the LocalCircles survey lots of faudulent activity is happening by instant loan apps and RBI is taking action.

      By Garima Sharma
    • Are most state ministers corrupt

      Attached visuals are Cash of Rs 27.9 crores in cash, gold, and jewellery worth Rs 4.31 crores which has been recovered till now from the residence of Arpita Mukherjee, a close aide of West Bengal ...

      By Rajesh Suri
    • Income Tax Return Date

      Please see attached trom day before. People are right in demand an extension. The Government doesnt have to do it by 5 months like last year. Do it for 2 weeks. Just streamline the flow so the mad ...

      By Amod Agarwal
Enter your email and mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

All My Circles
Invite to
(Maximum 500 email ids allowed.)