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

    • Rising cost of food grains

      Wheat prices are at the highest ever recorded. During the past 4 months, wheat prices have spiked from Rs 23/kg to Rs 29/kg. This, when the Govt procured 56% less wheat through FCI, when our wheat ...

      By Sarbvir Singh
    • Is the Govt thinking inheritance tax

      There is a sudden surge in last few months among very large corporate houses to set up family offices in tax-friendly jurisdictions like Dubai & Singapore. What do they know what we don't!

      By Parvati Sharma
    • Onset of new health conditions since the COVID pandemic began

      LocalCircles has been the primary destination for citizens of India to discuss COVID issues and especially health conditions that you or some one in the family/friends close network has experienced...

      By LocalCircles Manager
    • States should not adopt faulty vehicle policy

      The Govt has passed the attached notification to scrap more than 10 year old diesel and more than 15 year old petrol vehicle. Despite us saying that the scrapping should not be age based but kilome...

      By Naina Mittal
    • 95 pct whatsapp users getting unsolicited/promotional messages

      Yes, you read it right. That is the extent of the menace of so called unsolicited commercial communication now on whatsapp with 51 pct users getting over 4 such messages each day. And al...

      By LocalCircles Manager
    • Cars of private individuals/businesses used by officials

      It is extremely common to find that many senior bureaucrats have premium vehicles that they and family use but the vehicle is not registered in their name. It is registered in the name of some priv...

      By Amit Mishra
    • China - India going head on

      Chinese hackers found to be behind ransomware attack on AIIMS server and compromise data of 4 crore Indians. Initial probe reveals involvement of Chinese hackers and it appears to be a ...

      By Kalyani Verma
    • Political Party Tickets for Election

      The media is reporting many cases of candidates paying huge amounts for getting Party Ticket to contest election. In addition to cost of party ticket a candidate spends a huge amount in electi...

    • Aftersale Service of automobiles

      Yesterday i read an ordeal of a Kia car owner who gave his car Kia Sonata for servicing in Jaipur. After service, the cleaner rammed the car badly. Kia says use your insurance and get repair. Car i...

      By Vijaya Nair
    • Ratings and Reviews to be regulated

      I am thrilled to read that the Government has formed guidelines for ratings and reviews and our circle surveys have played a major role in it.

      By Vinita Agrawal
    • Regulating Online and Fantasy Gaming

      Many of you in different circles have been regularly raising raised issues related to Online Gaming and Fantasy Gaming. Basis some of your recent inputs in the survey and qualitative inputs, it app...

      By LocalCircles Manager
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.)