Though use of cash has increased since demonetisation, cleanliness in transaction and a rise in revenues for the govt have been two clear benefits.
Banknotes in circulation in value terms soared to Rs 29.17 lakh crore on October 29, 2021, from Rs 17.74 lakh crore on November 4, 2016.
The rise in Currency in Circulation (CIC) in absolute numbers is not the reflection of reality
When the economy was liberalised 30 years ago, the aim was to reduce concentration of economic power among companies and individuals
The increased use of digital money/pre-paid instruments has changed the composition of both reserve money as well as monetary base.
The present order is a continuation of an earlier advisory issued to the lenders in December 2016 to preserve the CCTV footage of operations at bank branches and currency chests
Increased vigil on the borders is likely to yield results against infiltration of fake notes in the system since most of these are printed beyond India’s boundaries
The share of all currency notes except Rs 500, Rs 200 and Rs 20 in the economy dipped in Covid-hit FY21 compared to the previous year
Cash in circulation as a share of the GDP had gone down to 8.26% in 2016-17 as a result of the demonetisation before it began rising again
Post-demonetisation in 2016, critics had pointed out that the move to have Rs 2,000 notes defeated the very purpose of fighting black money by withdrawing Rs 500 and Rs 1,000 notes