demonetization-a-conceptual-framework-by-dr-punam-agarwal.ppt
- 1. DEMONETIZATION - A CONCEPTUAL FRAMEWORK Dr Punam Agarwal
- 2. HISTORY OF INDIAN CURRENCY The Indian rupee (INR) is the official currency of the Republic of India. The rupee is subdivided into 100 paise (singular paisa). The Reserve Bank of India manages currency in India under the Reserve Bank of India Act, 1934. .
- 3. The rupee is named after the silver coin, rupiya, first issued by Sultan Sher Shah Suri in the 16th century and later continued by the Mughal Empire.
- 5. In 2010, a new symbol for indian rupee was officially adopted. It was derived from the combination of the Devanagari consonant “र” (ra) and the Latin capital letter “R” without its vertical bar (similar to the R rotunda). The parallel lines at the top (with white space between them) are said to make a reference to the tricolour Indian flag, and also depict an equality sign that symbolizes the nation’s desire to reduce economic disparity. The first series of coins with the new rupee symbol started in circulation on 8 July 2011.
- 6. DEMONETIZATION (DECLARED ON 8TH NOV AT 8:00 PM) WITHDRAWAL OF A PARTICULAR FORM OF CURRENCY FROM CIRCULATION.
- 7. W.E.F 9TH NOVEMBER -500/1000 NOTES BANNED
- 8. The sudden move to demonetize Rs 500 and RS1,000 currency notes is not new. Rs 1,000 and higher denomination notes were first demonetized in January 1946 and again in January 1978.
- 9. The highest denomination note ever printed by the Reserve Bank of India was the Rs 10,000 note in 1938 but these notes were demonetized in January 1946.
- 10. HIGHER DENOMINATION BANKNOTES OF RS 1,000, RS 5,000 AND RS 10,000 WERE REINTRODUCED IN 1954 AND ALL OF THEM WERE DEMONETIZED IN JANUARY 1978.
- 11. Rs 500 note came into circulation in October 1987. The Rs 1,000 note made a comeback in November 2000. The move was then justified as an attempt to contain the volume of banknotes in circulation due to inflation.
- 13. On 28 October 2016 the total banknotes in circulation in India was Rs17.77 trillion (US$260 billion). In terms of value, the annual report of Reserve Bank of India (RBI) of 31 March 2016 stated that total bank notes in circulation valued to Rs16.42 trillion (US$240 billion) of which nearly 86% (around Rs 14.18 trillion (US$210 billion)) were Rs 500 and Rs1,000 banknotes. In terms of volume, the report stated that 24% (around 22.03 billion) of the total 90266 million banknotes were in circulation.
- 14. NEW CURRENCY ISSUED BY GOI
- 19. INCREASING GOVT. REVENUE 1% of the country’s people are paying tax 95% transactions in India are made using cash Demonetization resulted in Rs 14 lakh crore of Bank deposits. the money that is coming into the system has not become white. Just because it is in the banking system does not mean it is legitimate. It will invite taxes and penalties if required and will have deeper scrutiny.
- 20. FAKE CURRENCY- CROSS BORDER TERRORISM PAKISTAN USED A COMPLEX NETWORK OF COURIERS AND BANKS TO FLOOD INDIA WITH COUNTERFEIT CURRENCY PRINTED AT PAKISTANI GOVERNMENT MINTS TO FUND TERROR OPERATIONS IN JAMMU AND KASHMIR, AS WELL AS THOSE IN MAHARASHTRA AND GUJARAT, KARNATAKA, KERALA, ANDHRA PRADESH, BENGAL AND BIHAR.
- 21. FAKE CURRENCY- CROSS BORDER DRUG EXCHANGE
- 22. INCOMPLETE PLANNING- WITHOUT VISUALIZING GRASS ROOT REALITIES
- 23. UNENDING QUEUES OUTSIDE BANKS
- 25. CASHLESS ATMS
- 26. BANKS DID NOT BEHAVE IN THE MANNER THEY WERE SUPPOSED TO ATMS DID NOT FUNCTION PROPERLY OLD CURRENCY WAS EXCHANGED FOR COMMISSION OF 10 PERCENT, 15 PERCENT WHICH CAME DOWN TO FIVE PERCENT LATER IRRATIONAL ALLOCATION OF LIMITED CURRENCY LACK OF INFORMATION WITH BANKS
- 29. SLOW DOWN EVERY WHERE Transportation halts: After the demonetisation was announced, about 800,000 truck drivers were affected with scarcity of cash, with around 400,000 trucks stranded at major highways across India were reported. Agriculture: Transactions in the Indian agriculture sector are heavily dependent on cash and were adversely affected by the demonetisation. E-commerce companies saw up to a 30% decline in cash on delivery (COD) orders.
- 30. IT RAIDS AND SEIZURES The Finance Ministry instructed all revenue intelligence agencies like Income Tax, Enforcement Directorate (ED) and other agencies to join the crackdown on forex traders, hawala operators and jewellers besides tracking movement of demonetised currency notes. As of 23 December, PMO received around 700 calls giving information about black money. Huge amounts of cash in the form of new notes were seized all over the country after the demonetisation.
- 31. Gold purchases:In Gujarat, Delhi and many other major cities, sales of gold increased on 9 November, with an increased 20 to 30% premium surging the price as much as Rs 45,000. Donations in old currency. People were also getting rid of large amounts of banned currency by sending people in groups to exchange their money at banks. As soon as the demonetisation was announced, it was observed by the Indian Railways authorities that a large number of people started booking tickets particularly in classes 1A and 2A for the longest distance possible. People used the demonetised Rs 500 and Rs1,000 notes to pay large amounts of outstanding and advance taxes. As a result, revenue collections of the local civic bodies jumped.
- 32. REACTIONS: MIXED INITIAL REACTIONS SUPPORTERS: MD & CEO of SBI AND ICICI Businessmen : Anand Mahindra , Sajjan Jindal , Kunal Bhal , N. R. Narayana Murthy International community: IMF, European commission, China media, Singapore. CRITICISM: Chief Economist of the World Bank, Kaushik Basu, Chief Ministers of several Indian states Nobel laureates Indian economist Amartya Sen Noted economist and journalist, T. N. Ninan
- 33. REALTY CHECK ABOUT THE PREPAREDNESS
- 35. DIGITAL INDIA Digital India is a campaign launched on 1 July 2015 by the Government of India to ensure that Government services are made available to citizens electronically. Digital India consists of three core components: Creation of digital infrastructure Delivery of services digitally Digital Literacy
- 36. FEELERS:PRIOR LEAKAGE OF INFORMATION A fortnight before the official announcement, a news report in the Hindi daily Dainik Jagran quoting RBI sources mentioned about the coming release of new 2000 rupee note alongside withdrawal of 500 and 1000 rupee notes. The Hindu Business Line on 21 October 2016 which also mentioned about coming 2000 rupee note and about possible withdrawal of 500 and 1000 rupee notes. The chairman of the State Bank of India had also openly spoken in April 2016 about the possibility of demonetisation of Rs 500 and Rs1000 notes.
- 39. WHY STUDENTS OF HEIS IT IS DEMOCRACY BY THE PEOPLE and FOR THE PEOPLE
- 40. YOU ALL EDUCATED & IT SAVVY CAPABLE ENOUGH TO INFLUENCE OTHERS TO GO DIGITAL
- 41. WE ARE PRESENT TODAY BUT WILL BE PAST TOMORROW YOU ALL ARE PRESENT TODAY, AND WILL BE PRESENT TOMORROW ALSO
- 43. BE A PART OF TRANSFORMATION PROCESS
- 44. BE THE CHANGE TO BRING CHANGE
- 45. YOU ARE THE AGENTS OF CHANGE
- 46. THANK YOU