DEMONETIZATION

DEMONETIZATION

i. HISTORY

ii. INDIAN SCENARIO

iii. HOW BLACK MONEY IS GENERATED?

iv. IMPACTS OF DEMONETIZATION.

v. WAYS TO CURB MONEY.

CONTENTS....

This is NOT THE FIRST demonetization drive by the government of India.

This drive was taken up by the govt in early 1978 too.

But it failed to remove BLACK MONEY from the country..

1.HISTORY...

NEARLY.. 80% of all transaction are conducted in cash..

INDIA is the biggest cash intensive economies of the world with cash to GDP ratio 12%

WHICH MEANS, The value of notes and coins in circulation

as a percentage of GDP.

2.INDIAN SCENARIO..

GDP rate after DEMONETIZATION

3. HOW BLACK MONEY IS GENERATED???

TAX EVASION

BRIBE

SOME MORE..

CORR-UP-TION

STOCK MARKET MANIPULATION.

4. IMPACTS OF DEMONETIZATION..

# DEMAND FOR GOLD

DEMAND FOR $$$$$$$$$$

IT WILL RESULT IN GOLD IMPORTS & ALSO IMPACT BALANCE OF PAYMENTS.

PEOPLE WILL HAPPILY PAY CHARGES/FINES/COMMISSIONS TO CONVERT BLACK MONEY INTO WHITE.

SOME OTHER IMPACTS ARE..

Some GOOD impacts..

These things helps a lot during DEMONETIZATION.

LIMITED CASH FLOW IN ECONOMY.

BUSINESSES GETS HIGHLY EFFECTED..

LIMITED CASH IN POCKETS..

POLITICAL PARTIES PREPARING FOR UP ELECTION WILL BE IN DEEP TROUBLE.

HAHA.. EVIL EFFECTS..

Clean up POLITICAL FUNDING.

DISINCENTIVIZE FRESH GENERATION OF BLACK MONEY

SWIFT IMPLEMENTATION OF GST.

5.WAYS TO CURB MONEY.

THANK YOU..