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Five years of demonetisation: A quick look at how it affected the economy

Despite the government’s attempts to encourage payment digitization and discourage cash transactions, cash transactions in the country continue to rise gradually.

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Five years of demonetisation

By: Kritika Bobal

It was a normal day for everyone until 8:15 p.m. when Prime Minister Narendra Modi jolted the country by stripping a monetary unit of its legal tender status. PM Modi stated that Rs 500 and Rs 1,000 notes—86 percent of all currency notes in circulation in terms of value—would be pulled from the circulation and will no longer be accepted as legal tender after 12 a.m.

In compensation for the demonetised banknotes, it also announced the issuance of new 500 and 2,000 currency notes. This sudden announcement not only tremored the souls of the poor but also affected the middle-class people, mainly the businessmen.

The country’s unorganized sector, which includes small-scale companies and micro home units, collapsed overnight. Millions of such units that relied on real currency watched their banknotes degrade into mere scraps of paper overnight. To compensate for the loss incurred during the fiscal term, the organized sector was forced to lay off workers.

The objective of demonetisation was to eradicate black money, reduce the use of fake notes, increasing digitization, and ease the transition of India’s non-formal sector into a formal sector. However, the idea backfired substantially in the days that followed, as persistent cash shortages disrupted people’s daily lives.

Five years of demonetization: A quick look at how it affected the economy

People who wanted to exchange their money had to wait in long queues, and numerous people died around the nation. The crisis continued, and individuals in misery waited for hours in front of banks, even after December 30, 2016, the final day the RBI allowed residents to deposit their old notes.

Despite fears of an economic disaster hovering over the country in recent years, the economy has managed to leapfrog in recent years, five years after the government declared demonetisation. Despite the government’s attempts to encourage payment digitization and discourage cash transactions, cash transactions in the country continue to rise gradually. Similarly, the country’s cash-to-GDP ratio fell from 12 percent as a result of demonetization but recovered in later years.

Read Also: Punjab CM: Petrol price cut by Rs 10, diesel by Rs 5

According to National Crime Records Bureau statistics, the number of reported instances for making Fake Indian Currency Notes increased 190.5 percent from 2019 to 2020, an 11.7 percent increase. Similarly, there was an 11.7 percent rise in occurrences of counterfeit cash notes in 2019 compared to 2018.

In Tamil Nadu, a 65-year-old visually impaired man has filed a petition with the Krishnagiri district collector’s office, requesting to exchange his old demonetized notes of Rs 500 and Rs 1,000, amounting to Rs. 65,000 in total. He stated that the money was his life savings, which he earned via begging.

2024 Lok Sabha Elections

Brij Bhushan Sharan Singh’s son Karan gets BJP Lok Sabha ticket from Kaiserganj

Karan Singh Bhushan was on December 13, 1990. He competed at the national level in double trap shooting. He has a daughter and a son. Karan Singh Bhushan completed his Bachelor of Business Administration (BBA) and law from Dr Ram Manohar Lohia Avadh University.

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BJP on Thursday dropped sitting Kaiserganj MP Brij Bhushan Sharan Singh, who has been accused of sexual harassment by women wrestlers and gave a ticket to his son, Karan Bhushan Singh. Karan Bhushan, Brij Bhushan’s younger son, is the president of the Uttar Pradesh Wrestling Association. He is also the head of The Cooperative Bank in Nawabganj in Gonda district.

Karan Singh Bhushan was on December 13, 1990. He competed at the national level in double trap shooting. He has a daughter and a son. Karan Singh Bhushan completed his Bachelor of Business Administration (BBA) and law from Dr Ram Manohar Lohia Avadh University.

He has also holds a diploma in business management from Australia. Karan Bhushan Singh is presently the president of the Uttar Pradesh wrestling association. Earlier he was the senior vice president of the UP wrestling association. Elections will be take place in Kaiserganj in the 5th phase of Lok Sabha elections on May 20. Karan Bhushan Singh is likely to file his nomination from Kaiserganj on May 3.

There has been a lot of speculation and suspense on Brij Bhushan Sharan seat this time as the former Wrestling Federation of India (WFI) chief, who is also a 6-term MP, had been accused of sexual harassment by some of the India’s top wrestlers.

Many female wrestlers, including medallists, protested against the BJP leader and demanded his arrest over the charges of sexual harassment while he was serving the position of the WFI president. Wrestlers, including Sakshi Malik and Bajrang Punia, sat on a protest at the Jantar Mantar and demanded action against the Kaiseganj MP.

The Delhi Police later registered a case against Brij Bhushan Sharan Singh under Sections 354 (assault or criminal force to woman with intent to outrage her modesty), 354D (stalking), 354A (sexual harassment) and 506 (criminal intimidation) of the IPC, on June 15, 2023. But he was granted bail on July 20, 2023.

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2024 Lok Sabha Elections

Rahul Gandhi criticises BJP, PM Modi for JD(S) alliance, seeking votes for a mass rapist

Rahul Gandhi was addressing an election rally in Karnataka’s Shivmogga where he said that PM Modi is seeking votes for a mass rapist. The Congress leader added that Narendra Modi, from a packed stage, supports that rapist and said: if the people of Karnataka vote for this rapist, it will help him.

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Congress leader Rahul Gandhi on Thursday said that the sex video  case involving Prajwal Revanna, the member of Parliament from Karnataka’s Hassan, is not just a mere sex scandal but of mass rape. He also criticised the BJP and Prime Minister Narendra Modi for the JD(S) and seeking votes for a mass rapist.

Rahul Gandhi was addressing an election rally in Karnataka’s Shivmogga where he said that PM Modi is seeking votes for a mass rapist. Prajwal Revanna raped a number of women and made their sex videos. The Congress leader added that Narendra Modi, from a packed stage, supports that rapist and said: if the people of Karnataka vote for this rapist, it will help him. Gandhi accused PM Modi of helping Revanna (former PM HD Deve Gowda’s grandson) escape from India.

Gandhi said even when Prajwal Revanna raped a number of women, the prime minister did not stop him from going to Germany. He said Prime Minister Narendra Modi has all the machinery, yet he allowed the mass rapist to flee to Germany. He took a sarcastic dig at PM Modi and said this is Modi’s guarantee. The Congress leader asserted that whether it’s a corrupt leader or a mass rapist, the BJP will always protect him.

Prajwal Revanna, the sitting MP from Hassan and the grandson of former PM HD Deve Gowda, has been accused of being in purported sex tapes. A number of pen drives allegedly contain his sexual assault videos which were circulated in Hassan, the Lok Sabha constituency from where he is the BJP-JD (S) candidate.

Most of the sex videos were recorded by Prajwal Revanna in his office and house. Initially, the Gowda family and the BJP termed the tapes as being doctored to tarnish the image of the family in elections but later, HD Kumaraswamy distanced himself from the tapes and said the police is investigating the matter.

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India News

SIT issues lookout notice for Prajwal Revanna in sex video case

A police officer, who is part of the SIT, confirmed to the media that a lookout circular has been issued at all the immigration points to detain Prajwal Revanna, said to be in Germany, as soon as he enters the country.

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The Special Investigation Team (SIT), probing the sex tapes case involving JD(S) Lok Sabha candidate Prajwal Revanna, on Thursday issued a lookout notice against him. The notice was issued at all immigration points all over the world. The development comes as Revanna allegedly fled to Frankfurt, Germany on April 26, as a huge cache of explicit videos and photographs showing him indulging in the sexual abuse of several women went viral on social media platforms.

Prajwal Revanna is the grandson of former prime minister and JD(S) patriarch HD Deve Gowda and son of former minister HD Revanna, is seeking re-election from Hassan on the JD(S) ticket. The JD(S) MP faces sexual assault charges and has sought 7 days to appear before the Special Investigation Team probing the matter.

Prajwal Revanna and his father, DD Revanna have been issued notices to appear before the SIT for questioning. The Hassan MP informed the SIT team that he is currently outside Bengaluru. A case has been registered against both HD Revanna and his son Prajwal Revanna at Holenarasipura based on a complaint lodged by their former cook and relative for sexually harassing her.

She alleged that Prajwal Revanna made video calls to her daughter and spoke in an objectionable manner, which forced her to block his phone number. The FIR was referred to the SIT, led by BK Singh, Additional Director-General of Police, Criminal Investigation Department, formed to probe the alleged sex scandal involving Prajwal Revanna, after many explicit videos were circulated on social media.

The National Commission for Women (NCW) has demanded a comprehensive report within 3 days from the Karnataka Police regarding allegations of sexual misconduct against Prajwal Revanna. The NCW expressed grave concern over the circulation of a number of obscene videos on social media, which showed Prajwal Revanna sexually assaulting number of women.

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