CA Aman Rajput
Quick Summary
As India marks its 75th year as a Republic, its opportune to reflect on the transformative journey of its economy from a struggling, third-world nation to the worlds sixth-largest economy. Against the backdrop of global economic challenges exacerbated by the COVID-19 pandemic and geopolitical tensio
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FAQ :
The main goals of demonetization in 2016 were to curb black money, promote cashless transactions, and combat illegal activities funded by counterfeit currency.
The INR 2,000 note was withdrawn because, over time, it became apparent that this high-denomination note facilitated illicit activities, and its introduction in 2016 was initially to address the cash vacuum from demonetization.
Approximately 97.26% of the withdrawn INR 2,000 notes have been returned to the Reserve Bank of India.
Potential economic benefits include windfall gains for banks, an improved Current and Savings Account Ratio (CASA), potentially lower lending rates, and positive effects on mutual funds and direct tax collections.
Yes, the Supreme Court upheld the government's decision on demonetization in 2016, stating it was an economic policy immune from judicial reversal and highlighted the reasonable connection between the government and the RBI in its implementation.
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