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 Because of the fact that 85% currency has been withdrawn from the market temporarily and a sizable amount of cash (black money) permanently, it will impact trade, consumer spending and low end employment.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
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 A patient is prepared for operation by food control, stomach washing, BP control, normal food withdrawn special food or kept under drips.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