The deliberate demonetization of 85%+ of money in November 2016 forced many changes. Initially business activity slowed, but then given jugaad – Indians started switching to mobile money (even without bank accounts)- such as the 10 apps – PayTm, Freecharge, Mobikwik, and others, all Indian companies. Even for street vendors – bhel puri walla, to fish walla – switching was fairly even for those with less education. The volume of mobile money activity is small, the size of each transaction is small, but are growing at more than 100%, while credit cards even after decades there are only 30 million cards in use. Mobile money could be nearly 500 million with Paytm alone having have this number. Smart phones, availability of one of the cheapest smart phones in India, demonetization and big RBI and government support is driving a revolution in the mobile wallet space. As our Prime Minister has said, the smartphone could soon become your bank. India would soon be a world leader in this space…
Source: Market Watch
- 4 May 2017
With the goal to check money laundering, black money and terrorism funding, government will be reducing the cash transaction limits further from the current Rs. 3 lakhs to Rs. 2 lakhs. Beyond these limits, a PAN card would be required. And if one is in violation, both the individuals and organizations receiving such payments. In the early years, penalty will be light but will become more strict with higher penalties in later years.
Source: Business Standard
- 26 Mar 2017
Demonetization seems to have stressed strugglers a lot who according to customs officials have had to get more creative. Some of the strangest ways of recent smuggling gold have included hiding nearly 70 lakhs in a papaya (not so terrible), to cutup chappals or baby diapers to inserting it in their body cavities including rectums (soooo terrible). So after this some of this gold is sold or used, so let us keep that in mind. As such smuggling has seen a big increase since demonetization, customs officials say they are monitoring suspects and they also receive tip-offs.
Source: DNA India
- 25 Jan 2017
PM Modi has millions of fans, followers and well wishers, but he also has lots of enemies – both political, jihadi ones, those from neighboring countries. The latest addition is due to the demonetization of high value currency notes and the impending law to prevent benami property. A popular Karnataka astrologer predicts a very serious assassination threat in February of this year. It was noted that he has already faced two threats to his life, one each during his visit to Afghanistan in 2015 when his plane made an emergency landing, and other during his surprise visit to Pakistan on December 25th of 2015. Per this prediction, the latest threat is the most dangerous he could be faced with.
- 6 Jan 2017
Political commentators thoughts demonetization would backfire on the ruling party. Instead during the recent local and panchayat level elections in Maharashtra and Gujarat, BJP made a clean sweep in both states in a big way. There were always many issues, drought, regional and community agitations such as Marathwada and Patildars. The big recent programme and potential public issue was the demonetization. Opposition parties are leading agitations, bandhs and stalling parliament. But at the ground level voters have spoken in a big and convincingly way about how they see it. So would the opposition listen and respect the verdict?
Source: DNA India
- 3 Dec 2016
Police say Kashmiri terror outfits operations have been hit hard by the ban on old notes. Laskhkar and other terror outfits are desperately on the look out for new notes to basic things like charge their mobile phones and pay their cadres. One group of terrorists attached a local bank and took Rupees 14 lacs of old notes. This might be a surprise but police say that it costs the terrorists around rupees 10 lacs each month to support 100 active terrorists. Each fellow uses up two of more sim cards as they keep changing sim cards, change phones – all of which costs more than Rs. 10,000 per terrorist per month.
Source: The Hindu
- 28 Nov 2016
The newspapers and TV channels are criticizing the government for the demonetization exercise. But the behaviour changes that were expected are starting to happen. Some of the early ones are: people are rushing to pay their electricity, income tax, real estate tax or other bills quickly; E-wallet companies are seeing a huge spike in payments; credit & debit card machines are being sought by small mechants at 30 times the normal rate; there is a huge drop in real estate transactions and builders feel cash transactions will be athing of the past; borrowing costs for infrastructure companies is falling fast so they will borrow more to invest more; hawala transactions for Chinese imports is taking a hit; and people in cities are using less cash and switching over to cards, internet banking and e-wallets more than ever. So this change is not without pain especially for the rural areas. But these changes are cause for hope and there is a move away from cash as one of the goals of the demonetization!
- 24 Nov 2016
Afzal Rahman, a normal Kashmiri (because he is not part of the 2% who are separtists) says he is a father of 4 and son of aged parents. Like every parent in India and everywhere, I worry about my children’s future. I am a proud Indian and Kashmiri and operate a garment shop in Srinagar. My own son, an aspiring policeman, was paid to join the stone pelters and later was hit in the arm, and my daughter’s school was burnt. Life was very tough and we could neither sleep or eat. But then you announced demonetization of 500 and 1000 rupee notes. Initially we got more scared. But this decision gave us back our lives. There has not been any more stone pelters on the streets or schools being burned, traffic has started moving, shops have opened and there are people in the market with happy faces. My daughter’s board exams were held with over 95% attendance with many happy faces. Given the lock down by separatists for over four months, we Kashmiris are enjoying standing in the bank queues. The separatists are suffering as they had only 500/1000 rupee notes which no one is taking now. So we in Kashmir valley are very happy with this decision.
Source: The Indian Voice
- 22 Nov 2016