Negative impact of Demonetization

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Negative impact of Demonetization

Post by truthbetold on Sat Nov 26, 2016 10:46 am


Every one read stories of long lines at banks.

Now the lines are reducing but secondary level impacts are surfacing.


Two wheeler sales in rural areas went down , in some cases. as much as 70% in some parts. RTO revenues came to a small fraction of previous transactions.

Real estate transactions have stopped. They are likely to remain subdued for several quarters.

Farmers could be hit hardest. They are reported to have problems getting money to buy seeds to start new season. They are expected to have problems selling their current produce.

Movie industry is not speaking but is deeply impacted.

informal economy is struggling.

Transportation is one of the worst hit sectors. Tolls and its need for cash on the road is causing heart aches for truckers.

Every day govt announces new rules and changes existing rules.

Some of these will ease with in weeks or in months. But some of them may kill jobs and sales and create very long term affect on Indian economy.

Is the policy of demonetization getting killed by unending implementation problems?

History in making.








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Re: Negative impact of Demonetization

Post by confuzzled dude on Sat Nov 26, 2016 11:01 am

Implementation problems, really? It is a dumb policy to begin with. Anybody that thinks that 86% of currency in circulation can be exchanged without long-term repercussions need a strong dose of reality. Modi garu kondani tavvi elukanu pattukunnaru.

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Re: Negative impact of Demonetization

Post by confuzzled dude on Sat Nov 26, 2016 3:45 pm


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Re: Negative impact of Demonetization

Post by confuzzled dude on Sat Nov 26, 2016 5:48 pm


In addition to the printing constraints, the RBI would also have logistical constraints. The money is printed in four printing presses in the country, from these presses it is transferred to 19 currency issuing offices of the RBI. From these, the money is transferred to 4,100 currency chests (most located within banks) across the country. From these currency chests, the money has to then be moved to > 130,000 bank branches and > 200,000 ATMs across the country.
As per cash logistics association of India, there are currently only ~8,800 vans and ~40,000 employees in the cash management service. This constraint has also been visible in the inability of the banks to be able to transport the old cash coming into their branches back to the RBI/currency chests and 30-40% of incoming deposits are still with them.
https://ftalphaville.ft.com/2016/11/25/2180289/what-will-it-take-to-quench-indias-cash-drought/

Indians are paying big for electing a dumb idiot.

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Re: Negative impact of Demonetization

Post by southindian on Sun Nov 27, 2016 10:52 am

truthbetold wrote:
Every one read stories of long lines at banks.

Now the lines are reducing but secondary level impacts are surfacing.


Two wheeler sales in rural areas went down , in some cases. as much as 70% in some parts. RTO revenues came to a small fraction of previous transactions.

Real estate transactions have stopped. They are likely to remain subdued for several quarters.

Farmers could be hit hardest. They are reported to have problems getting money to buy seeds to start new season.  They are expected to have problems selling their current produce.

Movie industry is not speaking but is deeply impacted.

informal economy is struggling.

Transportation is one of the worst hit sectors. Tolls and its need for cash on the road is causing heart aches for truckers.

Every day govt announces new rules and changes existing rules.

Some of these will ease with in weeks or in months. But some of them may kill jobs and sales and create very long term affect on Indian economy.

Is the policy of demonetization getting killed by unending implementation problems?

History in making.







Indians are corrupt. Period. 

And they belong to all parties, BJP, Congress etc.

If Indians could save money in Taxes, almost ALL Indians are ready to transact 'partially in cash and rest in cheque'.

ALL handles on SuCH have either done this are are ready to save money this way in India.

Exactly the reason why a lot of Indians are affected by demonisation. The evil know this and are banking on getting normal, corrupt thinking of Indians.

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Re: Negative impact of Demonetization

Post by confuzzled dude on Sun Nov 27, 2016 11:57 am

In 2001, India had 5.3 bank branches per 100,000 people in rural areas. Today that stands at only 7.8 branches, according to Reserve Bank of India data.

Even if farmers or small businesses are willing to go through the process of obtaining a bank loan, which includes filling out forms and several visits to the branch, bank officials say they are too focused now on getting cash out to devote time to small loans.

"We can't allocate manpower to scrutinize farm loan documents," said a manager in a rural branch of State Bank of India (SBI.NS).

For some analysts, the breakdown in the informal credit sector points to a government that has failed to grasp how the cash economy impacts ordinary Indians.

"It is this lack of understanding and not appreciating the importance of the cash economy in India on the part of the government that has landed the country in such an unwarranted situation today," said Sunil Kumar Sinha, an economist and director of public finance at India Ratings.
http://www.reuters.com/article/us-india-modi-corruption-rural-idUSKBN13M06T

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Re: Negative impact of Demonetization

Post by confuzzled dude on Sun Nov 27, 2016 12:00 pm

southindian wrote:
truthbetold wrote:
Every one read stories of long lines at banks.

Now the lines are reducing but secondary level impacts are surfacing.


Two wheeler sales in rural areas went down , in some cases. as much as 70% in some parts. RTO revenues came to a small fraction of previous transactions.

Real estate transactions have stopped. They are likely to remain subdued for several quarters.

Farmers could be hit hardest. They are reported to have problems getting money to buy seeds to start new season.  They are expected to have problems selling their current produce.

Movie industry is not speaking but is deeply impacted.

informal economy is struggling.

Transportation is one of the worst hit sectors. Tolls and its need for cash on the road is causing heart aches for truckers.

Every day govt announces new rules and changes existing rules.

Some of these will ease with in weeks or in months. But some of them may kill jobs and sales and create very long term affect on Indian economy.

Is the policy of demonetization getting killed by unending implementation problems?

History in making.







Indians are corrupt. Period. 

And they belong to all parties, BJP, Congress etc.

If Indians could save money in Taxes, almost ALL Indians are ready to transact 'partially in cash and rest in cheque'.

ALL handles on SuCH have either done this are are ready to save money this way in India.

Exactly the reason why a lot of Indians are affected by demonisation. The evil know this and are banking on getting normal, corrupt thinking of Indians.
you're suffering from same tunnel vision as Tughlaq Modi that this is cure for all ills.

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Re: Negative impact of Demonetization

Post by Seva Lamberdar on Sun Nov 27, 2016 2:20 pm

Govt. had been urging people for past two yrs. to open bank accounts and put their money in the bank instead of leaving it at home as cash etc. Unfortunately, many ignored what the Govt. and P.M. asked them to do. Now, after the demonetization by the Govt., they are complaining about standing in long lines and spending more time at the bank for opening new accounts etc. and depositing their money. Whose fault is it?

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Re: Negative impact of Demonetization

Post by confuzzled dude on Sun Nov 27, 2016 3:16 pm

Seva Lamberdar wrote:Govt. had been urging people for past two yrs. to open bank accounts and put their money in the bank instead of leaving it at home as cash etc. Unfortunately, many ignored what the Govt. and P.M. asked them to do. Now, after the demonetization by the Govt., they are complaining about standing in long lines and spending more time at the bank for opening new accounts etc. and depositing their money. Whose fault is it?
Wow! Are you suggesting that everyone  waiting in those long lines is black money hoarder? Please read a bit on the nature of this idiotic move and the troubles faced by common folks before spouting nonsense in support of your Brahmin/FC/Hindu/idiotic party and its dumbass leader

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Re: Negative impact of Demonetization

Post by Seva Lamberdar on Mon Nov 28, 2016 10:08 am

confuzzled dude wrote:
Seva Lamberdar wrote:Govt. had been urging people for past two yrs. to open bank accounts and put their money in the bank instead of leaving it at home as cash etc. Unfortunately, many ignored what the Govt. and P.M. asked them to do. Now, after the demonetization by the Govt., they are complaining about standing in long lines and spending more time at the bank for opening new accounts etc. and depositing their money. Whose fault is it?
Wow! Are you suggesting that everyone  waiting in those long lines is black money hoarder? Please read a bit on the nature of this idiotic move and the troubles faced by common folks before spouting nonsense in support of your Brahmin/FC/Hindu/idiotic party and its dumbass leader
People like you on the Internet are complaining more about the troubles for common folks in India from demonetization than they are doing it themselves (complaints-wise). Are you sure you know what you are doing?

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