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Positives of Demonetization Showing Up?

Positives of Demonetization Showing Up?We do not know the amount of Black Money that is weeded out from the system post Demonetization. But then, there are some visible benefits. According to government numbers, there has been a 20 per cent decline in cumulative cash holding by companies and individuals post demonetization.

Further, the number of taxpayers has increased 45 percent. On the other side, RBI is yet to finalize the quantum of money that has not come into the system after Demonetization Window has closed which will reveal the actual success.

In a historic decision on November 8th, Prime Minister Narendra Modi flushed the then 500 and 1,000 rupee notes, which accounted for 86 percent of the total currency in circulation. Economists believe that a majority of that is back in banks indicating that Demonetization did not work.

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