Exactly one year ago, the Narendra Modi-led government surprised India with demonetisation. The move that invalidated Rs 500 and Rs 1,000 currency notes, caused a protracted cash crunch and its effects can also be seen in slowing economic growth. On the other hand, it prompted a surge in bank deposits and a quantum jump in digital payment infrastructure.
Here are some of BloombergQuint’s lead stories on demonetisation and its impact:
Manmohan Singh To Modi – Time For Politicking Over, Let’s Rebuild The Economy
Former Prime Minister of India Manmohan Singh called demonetisation “damaging” and a “blunder” in an interview with BloombergQuint’s Contributing Editor Praveen Chakravarty. He urged Modi to “graciously acknowledge the blunder” and seek support from all to rebuild the economy.
A Year After Demonetisation
Finance Minister Arun Jaitley criticised Manmohan Singh for calling the note ban an “organised loot” and insisted the exercise was an “ethical drive and a moral step” that made corruption difficult. In an essay published on his Facebook blog yesterday, Jaitley claimed that the move had achieved its main goal of making “India a less cash economy and thereby reducing the flow of black money in the system.”
Piecing Together Parts Of The Demonetisation Puzzle
Twelve months after the big move, many questions have still remained unanswered. Whose idea was it? What was its true objective? And what were the pros and cons for the economy? Those and many more such questions remain unanswered, either completely or partially. This story attempts to answer those questions.
. Read more on Demonetisation by BloombergQuint.
Source: Global Economy