3. DEMONETIZATION
Demonetization is the act of stripping a currency
unit of its status as legal tender
It is the process of ceasing to produce and
circulate particular forms of currency
4. COUNTRIES WHO HAVE DONE THIS BEFORE
GHANA
ZIMBAWE
AUSTRALIA
NEWZEALAND
USA
EUROPIAN UNION
SINGAPORE
NORWAY
UK
INDIA
23. POSITIVE IMPACT (ECONOMIC)
record recoveries of house
tax
Electricity companies making
huge record recoveries
Huge opportunities for mobile
wallets
Property prices come down
by 25%
28. BLACK MONEY
Only 3 % to 7 % of black money is in form of
cash.
11.55 lakh crore have been deposited just
before demonetization day.
It was estimated that 70 lac crore black money
will be recovered but only 4 lac crore has been
recovered. (0.5% of GDP)
Others form of black money in terms of real
estate, gold, politician money, deposit in foreign
bank are still not been evaluated.
29. CORRUPTED MONEY AND TERRORISM
Public servant will not face enquiry without
prior permission of government.(anti Grift
Law)
Diluting FCRA Act.
Participatory notes
Fake currency :- no data have been
published yet.
30. DIGITIZATION
Demonetization and digitalization are
separate concept.
Not enough infrastructure for digitization
POS machine have been imported from
china.
Maximum ATM & Debit card are in with
foreign collaboration, hence profit will go to
foreign company.
ATM were not in tune with new currency.
31. ECONOMY TOTAL EXPENDITURE (1,28,440
CRORE)
61,500
15,000
16,800
35,140
Rs. in Crore
Cost to
enterprise
Cost of people
queing up
Cost to center,
RBI
cost to bank
32.
33. INDUSTRY
Small business,
Entertainment ,
luxury items
• Has come down
• Hard time to
cope
Bank
• Suffer lot of
problems
• Deposited with
RBI1.5 Crore
• Rate of deposit
come down
• Defaultation
increases
FDI
• Will likely to
increase
E-commerce
• Most increased
34. SOCIAL IMPACT
Job Loss
Construction workers
MNERGA hires falls by 23%
Toll Tax loss 1,238 Crore
Death issues