Arvind Subramanian, India’s chief economic adviser, points out in the Economic Survey tabled in Parliament on Monday that over 2016 and 2017.
Former RBI Governor Raghuram Rajan feels a substantial part of the growth slowdown in India was because of the after-effects of the demonetisation.
Officials say they have identified a well-oiled ring that was offering to change the old currency notes for new ones for a hefty commission.
Trade Unions want the government to allocate more funds in the Union Budget for employment generation and claimed that opening up the retail market to foreign players would lead to further loss of jobs.
Cash deposited by the Central Government employees during demonetisation - Minister's Reply
This was a break from the usual practice as the RBI had not made any transfers to the fund in the three preceding years. The government had sought the amount, which it felt was the surplus earned by the RBI.
The Indian Railways already offers a 0.5% discount on purchase of monthly travel pass if the payment is made through debit and credit cards.
I spoke to every cryptocurrency expert I could locate, but got only one answer: there was no way we’d be able to trace who the money went to,” says Punjab Police DIG Sukhchain Singh Gill.
In all probability, the Centre may withdraw the cheque book facility in the near future to encourage digital transactions," he said.
Additionally, 78% of the surveyed companies felt that demonetisation was unnecessary or did not achieve any positive results, said KE Raghunathan, President, All India Manufacturers’ Organisation.
Singh said that it was worrying that growth has been falling for several quarters due to demonetisation, sliding to 5.7% in the first quarter of 2017-18.
As per survey report made by Centre for Monitoring Indian Economy (CMIE) demonetisation has killed more than 1.5 million jobs.
No information is available about black money and counterfeit notes recovered post demonetisation, RBI said in response to an RTI query.
In its India section of the report, the Bank said one-time policy events disruptions from demonetisation and uncertainty surrounding GST slowed India's economic momentum.
former Union Minister Arun Shourie has likened demonetisation with suicide, saying the latter is too "a bold step".
Former Prime Minister Manmohan Singh on Monday cautioned the “hasty” implementation of the goods and services tax (GST).
Eight months on, no argument advanced by the government or its backers in favor of demonetisation has been validated by any authority.
According to the RBI data, Rs 100 notes in March made up Rs 2.5 lakh crore, or 19.3 per cent of the total notes in circulation.
While the jury is out on the costs and benefits of demonetisation, for the RBI at least, the note ban was one of the key reasons for lower profits.
“Rs 16000 cr out of demonetised notes of Rs 1544,000 cr did not come back.That is 1%. Shame on RBI which ‘recommended’ demonetisation,” Chidambaram said.
The Reserve Bank of India (RBI) has stopped printing the Rs 2,000 currency notes and will not be bringing new notes of that denomination in the current financial year.
The Supreme court said that the plea of those who had genuine difficulties in exchanging old currency due to demonetisation must be considered.
Reddy is also against recapitalising public sector banks from the RBI’s reserves. Edited excerpts:
Maharashtra government said it would give farmers Rs. 10,000 cash to meet their immediate needs. But the legacy of demonetisation has stalled the cash handout.