Demonetisation: Still, has anything changed yet? | Five years for the cancellation of notes.

Demonetisation: The Central Government has completed five years since the abolition of old notes. The Central Government on November 8, 2016 with the intention of recovering black money in the country.

Demonetisation: Five years for the cancellation of notes .. Still, has anything changed yet?

November 8, 2016 .. Shock all over the country .. Prime Minister Narendra Modi has announced that he is canceling big bills. Saying that Rs.500 and Rs.1000 notes will not be in circulation from today .. all people queued up in front of banks to exchange large denomination notes. The then Union government said that the Prime Minister had made this statement with the intention of getting rid of black money in the economy. Exactly five years since the cancellation of the big notes today.

The Central Government has completed five years since the abolition of old notes. The Central Government canceled Rs.500 and Rs.1000 notes on November 8, 2016 with the intention of recovering black money in the country. But digital payments have skyrocketed since the cancellation of the big bills. Statistics show that digital payments have been booming in the country for the past five years. At the same time cash transactions also increased.

Still, has anything changed yet?

Except for changes in the currency exchange in the past five years .. Black money .. No change in the case .. Digital payments, however, have rebounded significantly. Liquid cash usage is significantly lower compared to digital payments. The average annual growth rate of digital payments over a five-year period is 55 percent. Despite the increase in digital payments, cash consumption is still a priority in the Indian economy.

According to RBI figures, the value of banknotes in circulation in the country as on November 4, 2016 was Rs 17.74 lakh crore. However, as on the 29th of last month, it had reached Rs 29.17 lakh crore. The value of banknotes in circulation increased by 64 per cent. During the same period, the number of currency notes in circulation rose from 26.88 lakh to Rs 228.96 lakh. However, the abolition of banknotes and the promotion of digital payments have not had a major impact on cash transactions. Cash consumption in the economy also continues to be huge despite the increase in digital payments. Corona also contributed to this. Between October 2014-2020, the number of currency notes in circulation increased by an average of 14.51 per cent per annum. Most of the payments below Rs.500 are still made in cash.

Demonetisation: Five years for cancellation of large denomination notes | Increased consumption of currency notes | Enforcement of digital payments.
Demonetisation: Five years for cancellation of large denomination notes | Increased consumption of currency notes | Enforcement of digital payments.

However, it is known that UPI services were launched in 2016. But payments through monthly services have also increased massively. 421 crore transactions were transacted in October. According to RBI figures, their value stood at Rs 7.71 lakh crore.

Due to the situation arising out of the corona epidemic, people are keen to keep cash in hand carefully beforehand. This led to an increase in the circulation of banknotes during the last financial year. Statistics also show that payments through digital payments, debit and credit cards, net banking, UPI and other apps have increased significantly.

However, experts believe that digital payments need to be further facilitated so that cash consumption can be reduced. Experts predict that when the tax burden on cash-based payments increases, people will turn to digital for fear of rising costs. There is also a view that cash transactions need to be completely abolished in government affairs.

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