Demonetization - Short Term Risks

While there is very strong support towards Government's step on Demonetization, there are definitely some risks in the short and medium term. Because of the fact that 85% currency has been withdrawn from the market temporarily and a sizable amount of cash (black money) permanently, it will impact trade, consumer spending and low end employment.

With this post we seek all your inputs on short and medium (if any) term risks that you see as a result.

Once we understand all the risks we will have a separate discussion on how best these risks should be mitigated. The same will then be communicated to key stakeholders for actions.

We look forward to your inputs! more  

View all 125 comments Below 125 comments
Many people have stopped spending..for investment to happen, savings and consumption are important...also we may see crowding out effect for a few yrs..but its good in a way..public investment needs to increase multifold in a fruitful, employment generating way as pvt investment may be low for some time to absorb the risk/shock... more  
India had big tumor (Black Money),and she needed urgent operation. A patient is prepared for operation by food control, stomach washing, BP control, normal food withdrawn special food or kept under drips. While patient may become weak, to restore her to normal health, all relatives understand that such procedure is Qqqqessential and nobody complains to doctor that he is torturing patient. After operation,doctor imposes further restrictions, such as rest for recuperation, liquid food, further medicines, pshyiotherapy. All these restrictions initially followed and relaxed till she comes to normal. Now Dr Modi has done the operation, duely preparing country for operation and now post operation restrictions are being followed. Country which was inflicted seriously for 70 yrs, required urgent operation to flush out Black Money, has been performed by Dr Modi ,but indifferent and with vested interest,opposition (virus) wants to make country sick again. If sickness relapses, God help the country more  
Bank officials & financial institutions are known for corrupt practices. Tracking of daily balances in Bank employees accounts would be cumbersome. Also, they have access to manually alter & thus, manipulate the dates & amounts on the transactions. However, if they would transact with very huge amounts, then it would be obviously noticeable. more  
Black money hoarder may use corrupt officials of any office or institution who takes copies of ID proof for their work, and get hundreds or thousands of these ID proofs. Now bribing bank officials and using the forms for exchange of old currency notes along with these false ID proof with false signature, they can change any number of currency within minutes from backdoor. 1000 ID proofs is needed to exchange of 20 lakh Rs at one time. They can use it many times till 31st December. By use of CCTV only it would be very difficult to match the number of persons using the counter and total money exchanged within a time frame. Left thumb impression of all who come for exchange of money along with CCTV may be the solution. more  
CA ICWA Govt IT Advocate clear kare Grahniyo Senior Citizens ki bachat Saving Block Money kitni? calculation kar bataye Janta ko dar bhay n bataye. On 17 Nov 2016 14:01, "LocalCircles Manager" wrote: > more  
Post a Comment

Related Posts

    • New Covid is here

      A New Covid is fast spreading in China and this post is not to create fear but create awareness about it in people who may care. These are the things we know so far about New Covid that ...

      By Nikita Goyal
    • Online platforms failing to lower prices of fruits veggies

      The localcircles survey on fruit veggies prices online being too high and quality average very much resonates with us.

      By Seema Shah
    • The Baba following and their networths

      The net worth of Babas in India will make you go crazy. Remember, they are all considered as financially poor. 👇 Swami Nityanand: ₹10,000 Cr Aasaram Bapu: ₹11200 Cr Baba Ramde...

      By Sudesh Rai
    • 29 people bit by a single dog yesterday

      In Chennai and chances are the dog had rabies. What are we doing ?

      By Reeta Kumar
    • Taj hotel data breached

      If you have stayed in Taj hotels your data has been breached. Alleged data breach of Taj Hotels where Data of 1.5 million people maybe compromised. It Includes addresses, membership IDs...

      By Amit Mishra
    • No police visit for passport verification

      Passport applicants will no longer be required to go to police stations for verification in Gujarat. Police officers will visit the home of applicants only if there are particular grounds to suspec...

      By Dinesh Shah
    • Sweets Consumption in Urban India

      Thanks for issuing this report LocalCircles

      By Neelima Verma
    • India’s world cup loss

      One of the gravest mistakes was keeping the final game in Ahmedabad, a stadium that the Indian team had little familiarity with as compared to Wankhede or Eden Gardens. Why was this done...

      By Shailesh Deshmukh
    • Investigate cricket world cup ticket black marketing

      While the Indian team losing today was unfortunate the kind of black marketing that has happened in this worldcup has been outragious. If you paid a premium in tickets or in hotel rooms...

      By Ajay Dutta
    • Need law against black marketing

      There is an urgent need to have a law in India that prohibits black marketing and leads to instant punishment. Be it bottles of water or cricket match tickets, black marketing is happeni...

      By Shivani Khiste
    • Auto Insurance Claim Processing

      When one has an auto insurance claim dealerships tend to demand that the car must be left with them for 10-15 days. Its a sad situation. The work is for 2 days but the car is down for the owner for...

      By Amit Mishra
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.)