Despite the hardships, why do many people continue to back what most economists and analysts have termed a bad policy?
The rationales behind the surprise move – targeting black money, terror financing and building a cashless economy – have all failed to elicit results. Why then was this exercise undertaken at all?
With little hope for normalcy even 100 days after the note ban, there is an urgent need for providing relief and compensation to those who have been most affected.
A drastic decline in residents’ employment opportunities and incomes since the note ban has added to the existing woes of hunger, malnutrition, poor sanitation and drainage congestion.
Both the former and current RBI governors are surely acquainted with the Gujarati saying “Kona Baapni Diwali”. This cannot be the Centre’s stance when it comes to solving India’s NPA crisis.
There’s very little sensitivity being shown in forcefully shoving India’s small traders and producers into the formal economy. To what extent will this affect the BJP’s support base?
The opposition has submitted 651 amendments to the president’s address to the joint session of parliament – many of them contesting demonetisation.
The dichotomy between the interest of finance capital and the needs of the social sector has never been starker.
The survey does not lift the mist of confusion on India’s macroeconomic situation after demonetisation, while the conservative fiscal stance being proposed will only lead to an aggravation of the problems confronting the economy.
Inflationary concerns aside, we also have to realise that fiscal deficits are always accompanied by trade deficits.
The government must announce fiscal measures to stimulate demand if it wishes to repair some of the damage it has willfully wreaked upon the economy via demonetisation.
In poll-bound Uttar Pradesh, politicians who were hoarding black money for campaign purposes found several loopholes to get around demonetisation.
The Centre needs to make up for the losses it has caused to those who already live in precarious, marginalised conditions.
After demonetisation, the informal MSME sector needs careful handholding if they are to make the transition to the formal economy.
The Reserve Bank also promised to review the weekly limit in the near future depending on the pace of remonetisation.
Relieving the cash constraints of the poor is a critical way forward in the light of the high dependence of the poor upon non-institutional lenders.
After demonetisation, the NDA government needs to get its affairs in order: starting from reviving private investment to delivering on social programmes.
The RBI must now revisit its blanket refusal to answer an RTI query on demonetisation and provide a proper reply in a fortnight’s time.
The political economist answers a range of questions on the note ban – painting a comprehensive picture of what demonetisation has done to democracy, agriculture, the ‘black economy’ and society.
Cash rules critical parts of this supply chain: from farmer to yarn factory to yarn trader to power loom cloth manufacturer to wholesaler to retailer to consumer.
While the president’s office has been quick to clamp down on any unauthorised usage of images, the prime minister’s office has stonewalled RTIs while refusing to take remedial action against Reliance Jio or Paytm.
Far from the UBI schemes proposed in advanced economies, in India it’s a question of whether the Centre can juggle its finances and find a better way of delivering welfare.
Rishikesh, a popular tourist destination, has been hard hit by demonetisation. But political affiliations mean people aren’t willing to criticise the move, despite the impact on their livelihoods.
Are banks expecting that some kind of restriction on cash withdrawals could become a more permanent feature of our system?
Mehbooba Mufti has said the state government has not received any reports to suggest that demonetisation had an impact in Kashmir.
“Deaf and dumb parrots have been installed in the council of ministers and a similar RBI governor has been appointed, who have let the nation’s economy shake in its roots,” an editorial in the Sena’s mouthpiece said.
A shift away from cash reliance will come only when the urban middle class finds plastic money more convenient, not with forceful government intervention.
After demonetisation, investors and those within the BJP intellectual community are confused: Will Modi take a socialist path or will he stick to being a market-friendly prime minister?
The cut was “due to the temporary negative consumption shock induced by cash shortages and payment disruptions associated with the recent currency note withdrawal and exchange initiative”.
The Reserve Bank announced today that it raised the withdrawal limit at ATMs to Rs 10,000 with immediate effect, though the weekly limit remains Rs 24,000
A daily round-up of the human impact of demonetisation.
Illiteracy, patriarchy and a lack of familiarity with technology make poor women highly vulnerable in a cashless economy.
Proponents of demonetisation say it was required for market correction. However, given the magnitude of government interference involved, it is likely to disrupt markets rather than correct them.
Out of the 144 recorded farmer suicides, over 40 were from outside the Cauvery delta region. Observers and farmers directly attribute demonetisation as one major factor behind the suicides.
Demonetisation has crushed all the government’s previous pet projects, from the Swachh Bharat Abhiyan to Make in India, while still using patriotic emotions to advertise their importance.
In an interview with The Wire, the former central banker talks on the infeasibility of executing demonetisation while raising concerns over re-starting the working capital cycle of small and medium businesses.
Going against RBI guidelines, the SBI branch told the officer that government offices were not allowed more than Rs 24,000 a week in cash.
Demonetisation was meant to widen India’s tax base and increase our abysmally low tax-GDP ratio. The government could further this aim in more concrete ways through the Budget.
In a letter to RBI governor Urjit Patel, the employee’s union says that the image of the central bank has been dented beyond repair.
Bhutan is hoping to get a green light from the RBI next week on exchanging demonetised notes, while Nepal is still to start collecting the Rs 500 and Rs 1000 notes.