Sage-Tips

Did Raghuram Rajan oppose demonetisation?

Demonetisation came at a huge cost for Indian economy, says Raghuram Rajan. He said that demonetisation has come at a huge cost for the Indian economy and it can have a chilling impact on Indian economy. “The RBI’s concern that costs of demonetisation will outweigh benefits was conveyed to the government.

Who was RBI governor during demonetisation?

Shaktikanta Das
Shaktikanta Das, the man who spearheaded demonetisation, is new RBI governor. A retired IAS officer, Shaktikanta Das was economic affairs secy during demonetisation, and faces a host of challenges left behind by Urjit Patel.

What happened to the old notes after demonetisation?

Cash exchange and withdrawal The Reserve Bank of India stipulated that the demonetised banknotes could be deposited with banks over a period of fifty days until 30 December 2016. The banknotes could also be exchanged for legal tender over the counter at all banks.

Who was the governor of the Reserve Bank of India when demonetisation was announced in 2016?

governor Urjit Patel
The minutes of the crucial board meeting, which approved the government’s request for demonetisation, recorded the presence of then RBI governor Urjit Patel and the then economic affairs secretary Shaktikanta Das.

What is GST and demonetisation?

Economists observe that while the demonetisation decision was flawed from the word go, the GST regime could have worked better. GST, which subsumed almost all the indirect taxes, sought to simplify the tax burden for businesses operating across several states, which earlier had individual and complex tax systems.

What are the features of demonetization?

The following are the main features of demonetisation:

• Tax Administrative Measure: Demonetisation is regarded as a measure of tax administration.
• Tax Evasion Control Measure: Demonetisation is also known as the Government’s measure to control the mal-practices of tax evasion (avoiding tax illegally).

When was first demonetisation in India?

On 12 January 1946, High Denomination Bank Notes (Demonetisation) Ordinance 1946 was passed by the then Governor General of India, Field Marshal Archibald Wavell, 1st Earl Wavell ceasing 500paise, 1000paise, and 10,000 paise to be legal tender.

Can I exchange old 50 notes now 2021?

Though the old £50 notes officially expire at the end of September, you can exchange your paper one for a new polymer one after this date. “The Post Office may also accept withdrawn notes as payment for goods and services, or as a deposit into any bank account you can access with them,” states the Bank of England.

Can we deposit old 50 notes in bank now?

Exchanging old notes 30 September 2022 is the last day you can use our paper £20 and £50 notes. After 30 September 2022, many banks will accept withdrawn notes as deposits from customers. The Post Office may also accept withdrawn notes as a deposit into any bank account you can access at the Post Office.

Did RBI know about demonetisation?

In 2018, the RBI said it was not aware of how much money in demonetised currencies was being held by the Nepal Rastra Bank (NRB). However, in 2020, the RBI said the NRB had informed the central bank as early as 2017 that the Nepali banks held demonetized Indian currencies worth around Rs 8 crore.

How does RBI handle demonetisation?

Airlifting of currency was adopted to rush stocks to needy locations. Daily monitoring of production, supply, delivery, demand, withdrawal and stock were intensely monitored at multiple levels. Lower denomination notes were issued in plenty. The RBI received a lot of flak for corrections and adjustments.

What is Hindi meaning of demonetisation?

DEMONETISATION= विमुद्रीकरण [pr. {vimudrikaraN} ](noun) उदाहरण : भारत मे विमुद्रीकरण हुआ है

What is RBI’s annual report on demonetisation?

Reserve Bank of India (RBI) on Wednesday released its annual report which gave out figures on demonetised currency notes that came back to the system.

Why was RBI Governor urijit Patel grilled by MPs?

RBI Governor Urijit Patel was facing a gruelling interrogation by MPs while deposing before the 31-member Parliamentary Standing Committee on Finance, headed by Congress leader M Veerappa Moily. Patel was summoned by the panel to reply questions on the demonetization of high-value notes and its impact.

What is the long-term impact of Demonetisation on Indian economy?

Demonetisation’s long-term impact on the Indian economy is still debated. The government, meanwhile, has defended itself with the Finance Minister Arun Jaitley suggesting that just because the money is back with the RBI does not mean that black money hoarders have not been held accountable.