Demonetisation: Tomorrow on November 8, six years of demonetisation will be completed in the country and even today there is a discussion about whether demonetisation was successful or not. Many financial experts say that demonetisation succeeded in its objective of reducing black money, while many experts believe that it was a complete failure. Now a data has come which shows that the use of cash in the country is still plentiful and after this data of RBI, the discussion about demonetisation may once again get heated, it is possible.
How much cash is with the public in the country
By October 21, 2022, the cash available with the public reached a record level of Rs 30.88 lakh crore, which shows that even after six years of demonetisation, the country continues to use cash abundantly. This figure is 71.84 per cent higher than the currency level in circulation for the fortnight ended November 4, 2016.
Cash is at a record level of Rs 30.88 lakh crore
According to the money supply data released by the Reserve Bank of India (RBI) on a fortnightly basis, the level of currency in circulation among the public rose to Rs 30.88 lakh crore till October 21 this year. This figure was Rs 17.7 lakh crore in the fortnight ended November 4, 2016.
Demonetisation took place on 8th November 2016
Prime minister Narendra Modi On November 8, 2016, with the aim of removing the problem of corruption and black money in the economy, the notes of Rs 500 and Rs 1,000 were taken out of circulation. The move was aimed at making India a ‘less cash’ economy. The move was criticized by many experts as poor planning and execution.
Despite the digital operation, the use of cash in the Indian economy is increasing.
Currency held by the public refers to those notes and coins that are used by people to transact, trade and buy goods and services. Deducting the cash lying with the banks from the total currency in circulation, it is known that how much currency is in circulation among the people. Significantly, despite the popularity of new and convenient digital payment options, the use of cash in the Indian economy is increasing continuously. One reason for this can also be that digital facilities are not available with the lower middle class and lower class in the country and consider it more convenient to do transactions in cash.
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