5 years of DeMo: Cash still dominant in property transactions
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
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