1 Year of Demonetisation -What miracle it had made?

The day of 8 November 2016 was new to everyone as one of the biggest decision of NDA government came into existence.People rushed to their nearest banks to get their Rs 500 and Rs 1000 notes exchanged with the ones the following days.
Demonetized Rs 1000 notes
Old Rs 1000 notes

But it is seen that Demonetisation is not the ultimate tool to root out corruption.The main reason behind Demonetisation was to expose the so-called "black" market,reaped by money that is illegally gained and undeclared.According to reports of 2013,only 1% of Indians paid taxes.The policy change gave people the time till December 30,2016 to return their  Rs 500 and Rs 1000 notes,or else facing the risk of losing them.India invalidated the Rs 500 and Rs 1000 notes,which represented 86% of all currency in use.These widely used currencies affected a huge number of people,including the poor.

Some legal experts argued that Demonetisation violates the law.They say the sudden extinguishing of the public debt owned by the government to the holder of the bank note results in the government taking an individual's "movable property" away without easy access to a replacement or compensation.

Innovation and creativity emerged around Digital Payments motivating India to go cashless   
Bharat interface for money
BHIM app
During the time of Demonetisation,India was flooded with digital payments apps,with Paytm leading the race,claiming 170 million users,with a traffic increase of 435% and a 250% increase in overall transactions and transaction value.
The government made it's mark by introducing BHIM,a government-backed payment app,facilitated electronic transfers between bank accounts,users have to enter their 12-digit Aadhar number to make payment.
There are plans to make compulsory digital payments at gas stations,hospitals and universities.Indian Railways eliminates service charge on tickets booked online.

Data revels everything 
Official estimates from India's Central Statistics Office(CSO) on GDP growth  have shown that the economy grew at 7% in the quarter ending December 2016.
There are several problems with the CSO's figures.Firstly,there is a lag between the time when estimates are made and when actual data comes in.Secondly,the informal sector plays a disproportionate role in the country's economy.It produces 45% of the output and employs 94% of the workforce.It is the sector on which it is hard to get reliable direct data.The informal sector is also primarily cash-reliant.

Read How Demonetisation in India is a failure.                 
1 Year of Demonetisation -What miracle it had made? 1 Year of Demonetisation -What miracle it had made? Reviewed by Saurabh Jadhav on November 08, 2017 Rating: 5
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