80% money was demonetized, Indian people waiting for re monetizing
barter was used in initial day . they exchange things according to their demand but that was not the solution always so currency came into picture
agriculture mostly depend on nagad currency
India already seen it before also, in 11 January 1946
16 january 1978
8 november 2016 at evening 8pm
indian government ussed it again aginst terrorism,black money and duplicate money,
black money is that money which is aquirred illegally or money in which no taxes has been paid,suppose i took any payment from sombody but i dont want to declare it because it is illegal or i dont want to pay tax on it.
according to some economist it will control corruption,terrorism,reduce the interest rate, when capital cost will reduce then purchase power of people will increase, then there will be increase in demand, then supply chain will rotate and employment will also increase.
effect after demonitisation– nagad me diye jane wale bhugtan nahi ho ske.
assam has 800 tea estate and approx 700000 worker will do, 169 per day per person, half are womens, they will pay in week or 15 days, but due to demonetisation payment was difficult, so they suggest them to open bank account for each. but they have to go to the city to open a bank account and this was not the solution because their all paymnet will be gone in that case so government of india tried to reach to the people they started to open thae bank account number based on their aadhar identitty number(12 digit). aadhar card givees a unique identity number based on biometric and geographic information of the person. this is used to check the uniqueness of a person.
they open up the bank account and also provided mini atm based on there fingerprint.
in 1935 RBI comes into the picture which has a job to control the flow of money. newly printed currency were small in size as compare to before so it was necessory to recalibrate the all the ATMs. there are more than 2lacs ATM which has to be recalibrated as soon as possible.
to recalibrate there was 3 stages–
- the casets in which money can be stored in atm machine has to be reduced according to the new currency size.
- atm has to reprogram in software section and eliminate the 1000 option and add 2000 option
- all the atms has to be activate from the centre data bas most of the transactions are nagad based including transport, real estate and and restauront
when demonetisation happened in india then there was a season of marriage in india so people spent less on sajawat, cattering, jwellaries etc.
CURRENCY ARE PRINTED IN 4 PRINTING PRESSES IN COUNTARY nasik(mh),devas(mP),mysuru(karnataka), salboni(west bangal). from here they send currency to RBI then from there they send it to the ATM.
It was not a easy task to remonetise the worlds 6th largest economy. demonetisation gives a option of the cashless economy people were using also but after the remonetisation again cash came into market so people are again using the cash for there transaction. lets see if india can become an cashless economy or not