Demonetization: Success points · It is fact that due to demonetization India has marched on the path of digital transactions at a much faster rate. · Rate of inflation goes down due to demonetization. Prices of commonly consumed commodities, pulses, fruits,vegetables etc had gone down substantially post demonetization. Accordingly, it brought down the rate of…
Merits opined by the economic experts. · The demonetization policy is stated to have pronounced as greatest financial reform that aimed to curve the black money, curruption and counterfit currency notes. · The move has done to help India to become curruption free as it will be difficult now keep the unaccounted cash. · Demonetization…
Critisism over the issue: · A lot of analysis in India and abroad claimed that demonetization of November 2016 has failed to do what it as supposed to do and it’s impact has turned out to be more protracted then initially excepted. · Even from the point of the view of promoting digital money, the…
Digital payments The push for the digital payments was one of the stated intention of the demonetisation. There was immediate and sharp jump in the digital payments in November–December 2016 owing to shortage of cash. The debit card point of sale transactions was twice the size of value suggested by trend before the demonetisation. The value…
Ordinance and Act The Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016 was issued on 28 December 2016, ending the liability of the government for the demonetised banknotes. The ordinance also imposed fines on people found carrying out transactions with them after 8 November 2016, or holding more than ten of them after 30 December…
Alternative Funds of demonetization Soon after the announcement, people rushed to buy gold, a demand that drove prices up, in some cases even to a 64-percent premium, prompting the tax authorities to conduct surveys, according to the Business Standard newspaper. The government emphasized the need to furnish PAN (Indian Permanent Account Number) card details on purchases…
Introduction : Demonetization means the withdrawal of a coin, note or precious metal from use as legal tender. It is the act of stripping of a currency unit of its status as legal tender and replacement of old currency with new currency by a country. The current form or forms of money is pulled…
The following are the important findings of the study. The retail banking products of scheduled commercial banks in India include retail deposit products, retail loan products and retail services. Housing loan, auto loan, consumer durables loan, credit card and personal loans constitute the retail loan portfolio of scheduled commercial banks in India. The retail advances…
The commercial banks serve as the king pin of the financial system of the country. They render many valuable services. Commercial banks provide banking services to businesses and consumers through a network of branches. These banks are in business to make a profit for their owners and they are usually public limited companies managed by…
Commercial banks are one source of financing for small businesses. The role of commercial banks in economic development rests chiefly on their role as financial intermediaries. In this capacity, commercial banks help drive the flow of investment capital throughout the marketplace. The chief mechanism of this capital allocation in the economy is through the lending…