Six years after demonetisation: A have a look at what occurred and altered

Prime Minister Narendra Modi, in his televised tackle to the nation on November 8, 2016, mentioned that the 2 banknotes will likely be “just worthless piece of paper,” with instant impact, and went on to introduce new notes of Rs 2,000 and Rs 500 for public circulation.

While many have pegged it as a “bold” transfer, the Opposition, over time, has criticised the BJP authorities, calling the choice a “failure”.

Six years later, Congress chief Rahul Gandhi, in a tweet on Monday, attacked the transfer applied by the BJP-led authorities within the nation. He wrote, “In demonetisation, the ‘Raja’ did the DeMo-lition of the economy with the promise of ’50 days’.”

भाजपा शासन में काला धन वापस आया और गरीबी तेज़ी से कम हुई।

अर्थव्यवस्था मजबूत हुई, भारत विश्व की पाँचवी सबसे बड़ी अर्थव्यवस्था बना।

करोड़ों छोटे व्यापार और रोज़गार आगे बढे।

इस demonetisation से काले धन पे जो वार हुआ उससे आपको नाराज़गी है, हम समझ सकते हैं। दर्द साफ़ झलक रहा है। https://t.co/11Cv9eHgKs pic.twitter.com/Ye8OlWBfqu

— Amit Malviya (@amitmalviya) November 7, 2022

Replying to Gandhi, Amit Malviya, the in-charge of BJP’s IT Cell, wrote, “We can understand that you are angry with the attack on black money due to this demonetisation. The pain is clearly visible.”

Malviya additionally shared two graphics which highlighted the good points resulting from demonetisation. The posters acknowledged, “undisclosed assets worth Rs 7,877 crore seized,” and undisclosed revenue value “Rs 87, 200” admitted. The transfer continues to be upheld by a number of Ministers within the Government.

Demonetisation: A digital push?

Union Finance Minister Nirmala Sitharaman had hailed the transfer a “major push to digital economy” in 2020.

As India went into stringent lockdowns in the course of the Covid-19 pandemic-hit years – 2020 and 2021 – individuals, nonetheless, began accumulating money to satisfy their important wants. As The Indian Express has reported, forex in circulation (CIC) elevated to a excessive of 14.4 per cent of GDP in 2020-21, a leap from 10.7 per cent of GDP in 2017-18.

Opposition leaders slammed the demonetisation transfer citing the report, which states that money with public recorded a brand new excessive of Rs 30.88 lakh crore on the fortnight ended October 21, 2022. Congress President Mallikarjun Kharge mentioned, “6 years after the ‘masterstroke’ the cash available in public is 72% higher than that in 2016. PM is yet to acknowledge this epic failure that led to fall of economy.”

Even although the RBI and the federal government our bodies push for a “less cash society,” the report highlights that money continues to dominate the market as the popular mode of cost. Despite a number of digital cost strategies obtainable to the general public, companies rely on money for end-to-end transactions. Cash continues to stay the reliant mode of transaction for 15 crore individuals who shouldn’t have entry to a checking account.

Protests by the Opposition

These six years have seen varied protests organized by leaders of the Opposition events in opposition to the “harm” the transfer had brought about to the nation’s economic system.

The sudden withdrawal of notes resulted in liquidity scarcity in 2016, with lengthy queues exterior banks. About 115 individuals reportedly died whereas standing in queues to withdraw cash from their financial institution accounts. The circulation of the brand new Rs 500 and Rs 2000 banknotes was, furthermore, reported to be sluggish.

It had roiled the economic system, with demand falling, companies going through a disaster, and GDP progress declining near 1.5 per cent. Many small items have been hit onerous, with many reporting large losses even after 9 months.

Days after the announcement made by PM Modi in 2016, Left events referred to as for a 12-hour bandh within the nation’s capital. The AAP and Congress additionally held separate rallies and marches in opposition to the transfer.

A 12 months down the road, in 2017, the Gujarat Jan Andolan, led by Nirjhari Sinha, determined to clank belans (rolling pins) on metal plates on the Sardar Baug in Laldarwaja, Ahmedabad, to register their protest in opposition to the demonetisation drive.

In 2018, the Indian Youth Congress organised a protest exterior RBI Headquarters, whereas Opposition leaders and our bodies attacked PM Modi-led NDA authorities for “ruining” and “wrecking” the nation’s economic system. The Congress celebration had additionally declared to carry protests throughout the nation and search an apology from Prime Minister Narendra Modi for a similar.

The 12 months 2019 additionally noticed agitations by the Gujarat Pradesh Congress Committee at taluka, district and state ranges throughout Gujarat from November 8 to fifteen in opposition to BJP, financial slowdown, unemployment, and banking sector disaster across the nation.