The yearly report of the RBI published a couple of days back is the final nail in the coffin of this unsuccessful demonetisation exercise. It was a terrible idea, poorly planned and poorly executed. The initial instruction issued from the RBI was amended repeatedly and also the authorities did exactly the same from time to time. From the close of the exercise, the target post was changed a lot of times that the initial goals of the exercise were abandoned entirely and fresh and spurious motives were provided as justification for the movement.
That is still being performed. However, its most recent annual report says that 99.3percent of this demonetized money has arrived back into the RBI. It’s important to point out here that the Indian money from circulation in Nepal hasn’t been accounted for. I know on good authority that nearly 1,000 crores is your formally admitted figure up to now in Nepal and even more is in flow in the far flung regions of the nation, not one of that was counted yet. Even more shocking is how demonetised notes deposited into the district branches of the fundamental co-operative bank have yet to be accounted for. Including therefore the quantity of 745 crores that was deposited at the district combined bank of Ahmedabad in the initial five times where the President of BJP is a manager. The RBI withdrew the centre of changing the notes at the district merged banks abruptly after five times, but just after old notes were altered from the Ahmedabad branch. There are indications of a scam that is massive .
In his stirring speech to the country on November 8, 2016, the Prime Minister had said the evils our nation was suffering by which he expected to eliminate even though the demonetisation exercise. All these were corruption, black cash and terrorism. At one stage in his address, he included fake money also into the record and spoke about the Hawala course which eased illegal trade in weapons. At some time in his address, he explained the entire practice as a”struggle against corruption, black cash, bogus notes and terrorism”. According to an investigation of his address, the term”corruption’ was cited 16 days; the phrases”black cash” 17 occasions; the term”bogus notes” double and the term: terrorism: 5 instances. There was no mention of formalization or taxation compliance of this market. These two are added afterwards as a means to justify the failed drill.
Together with the yield of 99.30percent of the money notes in circulation, the whole number of black money in the machine was deposited with banks. This announcement and the event of the Ahmedabad district consolidated bank draw out clearly that the actual goal of demonetisation was to allow the”buddies” of the authorities to convert their black money into white by enticing them in the banking system and next to corner 3 to 4 lakh crore as windfall profit from this practice, which it might use how it liked. Corruption, black cash, bogus notes and crimes have been inserted simply to spice up the workout and make a fool of these individuals. The Finance Minister is indicating that the entire exercise was supposed to produce the people of this nation more taxation compliant. Why have they vanished and where are they stored and from whom?
The harm done to the market by means of this foolish practice is yet to be calculated, as most of the notes are not yet been counted. Maybe these jobs will need to be carried out by the government.
Based on a World Bank report, the Indian market decreased by 7.3percent in the first two months following demonetisation. The World Bank group employed a novel way of studying satellite images of India at night to find out how many lights which used to burn until demonetization got extinguished after demonetization. And even that’s inadequate to satisfy with the wage bill of this scheme together with arrears mounting upward? The sole reason for this is that employees in the small and medium enterprises throughout out the nation lost their jobs following demonetization and went straight back to their own villages. I understand from personal experience as a former Lok Sabha MP that previously there were a few takers for MNREGA function; it had been the previous choice of any commission earner. How come it has become the way of his success?
Prime Minister Modi had stated in a public interview he wanted just 50 days by individuals of India (around December 31) to attain the goals of the scheme. When it failed, he explained he’d appear before the folks at any given chowraha (public intersection) to accept any punishment that the folks would decide for him. So Modi won’t be judged by the public in a Chowraha; he is going to be judged by the public throughout the next Lok Sabha elections.