ROLE OF DEMONETIZATION IN DIGITAL ECONOMY
M. JERORAJ, I.M.Com
K.C.S.Kasi Nadar College of Arts & Science
ABSTRACT
Digital economy refers to an economy that is based on digital computing technologies. The digital economy is also sometimes called the Internet Economy, the New Economy, or Web Economy. Increasingly, the "digital economy" is intertwined with the traditional economy making a clear delineation harder. This paper discusses the concept of demonetization and its role in digital economy.
Key words: Digital Economy, Demonetization, Capital Revenue
INTRODUCTION
On November 2016 the people of India went in storm the banned of 500 and 1000rs currency note which forced the people In an panic situation. …show more content…
Along with GST, likely to reduce the size of black economy boosting official growth rate. See up to 1% increase in GDP growth in FY18
• Inability to deal in cash in real estate to boost financial saving, particularly equity
• Cashless transactions can increase credit cards,mobile banking etc
DISADVANTAGES OF DEMONETISATION
• Cash based activities not needing KYC where black money gets spent such as eating out, garments, alcohol etc would see pressures
• Real estate with cash dealing most seriously impacted
• While existing cash black money may become worthless, for posterity black money may get increasingly get parked in smuggled gold
• Politicians have superior power and thus able to transfer their black money with their political powers
LEGACY OF DEMONETISATION INDIAN EXPERIENCE Demonization is a vast experience it as happened in Indian twice in the year 1954 and 1978.In 1954 it banned 1000 and 10000 rupees notes. But this demonetization didn't have a great impact. In 1978 it banned currency note of 1000,5000,10000 which made people in stress but for middle class it was not an issue. But the move on the latest DEMONETISATION had great impact in 1978 it's GDP growth was0.1% now it as over 10℅ and it has had a great …show more content…
In the country Ghana it had DEMONETISATION in the year 1982 by banding 50 cedi currency .The move result in failure across the country.Nigeria government banned currency note and issued coloured notes in 1984.Russia went DEMONETISATION in the year 1991. In 2010 north Korea underwent DEMONETIZATION which made people to starve for their basic needs.Australia issued plastic notes in replace of paper notes to stop duplication of notes
FINANCIAL RESULT The move was planned 5months ago on may 19 2016 the rbi as sanctioned the scheme .According to the statement of rbi 15.44 lakh crore rupee was demonetised out of which 9.2 lakh crore rupee note was replaced according to the statement given by raguram
M. JERORAJ, I.M.Com
K.C.S.Kasi Nadar College of Arts & Science
ABSTRACT
Digital economy refers to an economy that is based on digital computing technologies. The digital economy is also sometimes called the Internet Economy, the New Economy, or Web Economy. Increasingly, the "digital economy" is intertwined with the traditional economy making a clear delineation harder. This paper discusses the concept of demonetization and its role in digital economy.
Key words: Digital Economy, Demonetization, Capital Revenue
INTRODUCTION
On November 2016 the people of India went in storm the banned of 500 and 1000rs currency note which forced the people In an panic situation. …show more content…
Along with GST, likely to reduce the size of black economy boosting official growth rate. See up to 1% increase in GDP growth in FY18
• Inability to deal in cash in real estate to boost financial saving, particularly equity
• Cashless transactions can increase credit cards,mobile banking etc
DISADVANTAGES OF DEMONETISATION
• Cash based activities not needing KYC where black money gets spent such as eating out, garments, alcohol etc would see pressures
• Real estate with cash dealing most seriously impacted
• While existing cash black money may become worthless, for posterity black money may get increasingly get parked in smuggled gold
• Politicians have superior power and thus able to transfer their black money with their political powers
LEGACY OF DEMONETISATION INDIAN EXPERIENCE Demonization is a vast experience it as happened in Indian twice in the year 1954 and 1978.In 1954 it banned 1000 and 10000 rupees notes. But this demonetization didn't have a great impact. In 1978 it banned currency note of 1000,5000,10000 which made people in stress but for middle class it was not an issue. But the move on the latest DEMONETISATION had great impact in 1978 it's GDP growth was0.1% now it as over 10℅ and it has had a great …show more content…
In the country Ghana it had DEMONETISATION in the year 1982 by banding 50 cedi currency .The move result in failure across the country.Nigeria government banned currency note and issued coloured notes in 1984.Russia went DEMONETISATION in the year 1991. In 2010 north Korea underwent DEMONETIZATION which made people to starve for their basic needs.Australia issued plastic notes in replace of paper notes to stop duplication of notes
FINANCIAL RESULT The move was planned 5months ago on may 19 2016 the rbi as sanctioned the scheme .According to the statement of rbi 15.44 lakh crore rupee was demonetised out of which 9.2 lakh crore rupee note was replaced according to the statement given by raguram