Personal Interview

Demonetization - Noteban

Demonetization: Effects on Economic Pillars

A year back, an unexpected appeal by PM Narendra Modi shook the Nation. It was an appeal to join him in the fight against corruption and black money. This could be the riskiest political move by the Modi Sarkar, however, they took a stance and start the implementation of demonetization. It has been a year after this bold move, so, let’s examine the results of the move.

Also Read: Ecommerce a Boon or Bane

The move has had a great impact on the economy and has resulted in the following:

  1. Black money unearthed
  2. A cleansed financial system
  3. Drop in real estate prices
  4. Decline in lending rates of the bank
  5. Detection of fake currency notes
  6. Increase tax compliance

1. Black Money Unearthed:

Also Read Big Economic Firms you should know about

With more than 98% of the cash returning to the banks; it was not difficult the track the black economy. Some think that the demonetization has failed but the entire exercise has made it possible for the Government to uncover the black money hoarders.

Some Crucial Outcome of this:

  • More than 17 lakhs cases identified where cash transaction didn’t match tax profile
  • More than 3 lakh crore in 23+ lakh bank accounts are under investigation
  • 0.011%  of the country’s population deposited 33% of total cash. These accounts are now under audit.

2. A cleansed Financial System:

Also Read Molestation and Indian Mentality

There was crack down on 2 lakh bogus companies, which were created for the sole purpose of tax evasion. These companies had 100+ bank accounts each in their name. One of them had 2000+ bank accounts. Further, based on the data received from banks, it was revealed that about 58,000 bank accounts of 35,000 companies deposited and withdrew Rs. 17,000 Crore post-demonetisation. The above examples bring forth the modus operandi of some of the shell companies caught during the investigation. The wide-scale purging of shell companies is a proof that demonetisation was an earnest step taken in the right direction to cleanse India’s financial system of its deep-rooted menace.

The numbers show that the implications of demonetisation were huge, considering that it pushed the colossal financial system towards transparency, in one big sweep.

3. Drop in the Real Estate Prices:

Also Read Welingkar GD PI Tips

According to the Economic Survey, the weighted average price of real estate fell post demonetization. The report said:

“An equilibrium reduction in real estate prices is desirable as it will lead to affordable housing for the middle class, and facilitate labour mobility across India currently impeded by high and unaffordable rents.”

The real estate was well known for parking a lot of black money and dealing in cash transactions; which was reduced post demonetization.

4.  A decline in the lending rates of the bank: 

The MCLR i.e. Marginal Cost of Lending Rate declined from 9.3% in Oct 2016 to 8.5% in June 17. Various loans such as Education, Home etc also got cheaper.

Bank-Lending-Rates-Declined

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Also Read Welingkar GD PI Tips

5.  Detection of Fake Currency Notes: 

Fake currencies have a grave effect on the economy as they have an artificial increase in the Money Supply, which causes inflationary pressure.

The counterfeit data given in RBI’s annual report shows detection of 762 thousand fake currency notes, an increase of 20% since last financial year. Among these, a majority of the counterfeit notes have been of Rs 500 (MG series) and Rs 1000, 41% and 33 % respectively.

There has been no case of detection of high-quality fake currency notes post demonetisation.

6.  Increase in Tax Compliance: 

Also Read BREXIT- An Event That Created A Stir In The Global Economy

Demonetisation has led to a significant widening of the tax base with a record increase of 26.6 percent in a number of new tax prayers from 66.53 lakh in 2015-16 to 84.21 lakh in 2016-17. In addition, the number of e-returns filed increased by 27.95% from 2.35 in 2016-17 crore to 3.01 crore in 2017-18.

Conclusion:

There are many more benefits of demonetization, on average, revenues of urban local bodies across the country increased almost 3 times. revenues of ULBs in Madhya Pradesh and Gujarat increased almost 5 times.

 

 

 

 

 

 

 

 

Welingkar GDPI experiences 2017

Following are the GDPI Experiences of the students at Welingkar, Bengaluru which happened on 29th and 30th of April, 2017.

Student 1

In the GD Room

GD topic: Indian firms are investing in the US, is it right or wrong?

First it started with the registration part with our score cards and admit cards. After that we were given a presentation on Welingkar College by its students. Then we began with the Group Exercise which includes Group Discussion and written test. The topic was given and some facts were also given regarding it.

We were given 5 minutes to think, 15 minutes to discuss and 10 minutes to write the conclusion.

(more…)

Donald Trump- Bright Future Of America

Donald Trump the 45th President of the United States of America was born on June 14, 1946 in Queens New York. He was a successful billionaire and a huge television personality before entering the politics. He is the supporter of the Republican Party. He was standing against Hillary Clinton for the final round of elections.

He has brought many new rules and regulations which have created a massive impact all over the world. He won the elections on November 8, 2016. Donald Trump is the first who has won without any military or government service. He is the oldest and wealthiest President.

(more…)

brexit

BREXIT- An Event That Created A Stir In The Global Economy

Brexit is a term used to describe the exit of Britain from the European Union. The European Union – often known as the EU – is an economic and political partnership involving 28 European countries. To decide whether they should be in the European union or not a referendum that is there were votes taken from all who were eligible to vote. This process took place on Thursday 23rd June 2016.

The result was in favor of leaving the European Union. The leave won by 51.9% to 48.1%. There were more than 30 million people voting and the turnout was 71.8%.

After the referendum was lost, Prime Minister David Cameron announced his resignation as the Prime Minister of UK. He was in favor of staying in the EU and he preferred best that the captain for this ship be different.

(more…)

Scheme

Gold Monetisation Scheme- to help receive better returns

What is Gold Monetisation?

Gold Monetisation Scheme is the scheme where a citizen can deposit their gold in return for interest or dividend.

Why is this scheme brought into action?

Normally, people keep their gold in the bank locker which turns out to be beneficial when they sell that gold to the present higher prices but along with that they also incur bank locker charges i.e. carrying cost, it is charged for the time the gold is kept in the banks locker. This scheme helps citizens to avoid such charges and earn interest on the gold deposited.

(more…)

demonetization

Demonetization- For Dark Indian Future

Demonetization is a process where the current currency loses its status. The recent demonetization that took place India on 8th November 2016 was a change that brought drastic changes in all the sectors on a global level.

The launch of new 2000 and 500 rupee notes caused a real chaos in the minds of the public and in the business market. The idea behind this step was to remove black money once and for all, and to expose whoever had this black money hidden with them.

The situation that occurred in the company were extreme. Daily there would be a long queue of public depositing their old 1000 and 500 rupee notes in exchange of the new ones. There were problems when money was not available in the bank and people who have been standing in line for the whole have been disappointed.

(more…)

mission

Mission To Make India Clean-(Swachh Bharat Abhiyan)

SWACHH BHARAT ABHIYAN.

The Swachh Bharat Abhiyan is a mission launched by the Government of India under the guidance of Prime Minister Narendra Modi. The objective of the mission is to have clean roads, cities and villages. In turn having a clean and hygienic India. Swachh Bharat Abhiyan was launched on 2nd October 2014 by the Prime Minister.

Another objective is to build community toilets to eliminate the problem of open defecation. They have also taken the initiative of monitoring the latrine use.

THE ONE FROM WHERE IT ALL BEGAN:

(more…)

4 P’s of Marketing Mix (product, price, place, promotion)

The Marketing mix is a set of four decisions (product, price, place, promotion) which needs to be taken before launching any new product. Marketing is simplistically defined as ‘putting the right product in the right place, at the right price, at the right time.’ Though this sounds like an easy enough proposition, a lot of hard work needs to go into finding out what customers want, and identifying where they do their shopping. Then you need to figure out how to produce the item at a price that represents value to them, and get it all to come together at the critical time. But if you get just one element wrong, it can spell disaster. You could be left promoting a car with amazing fuel economy in a country where fuel is very cheap, or publishing a textbook after the start of the new school year, or selling an item at a price that’s too high or too low  to attract the people you’re targeting.

Understanding the Tool

(more…)

What is the Suwalki Gap? Why it could be the flash point between Russia and Nato?

It’s one of the most tranquil corners of Europe. Quiet country roads lead through pristine and unsoiled towns, glide past lakes and wind their way around virginal forests bespeckled with oak and spruce.

But defence watchers say this thin strip of land, fully within the European Union, could be a flash point of future military action between Russia and the US. A strategic affairs analyst has even raised the prospect that an emboldened Russia, intent on pushing the Washington-led NATO military alliance away from its territory, could drop a nuclear bomb on the isolated sliver of land.

Known as the ‘Suwalki Gap’, this 80 km patch of relatively flat, difficult to defend countryside, straddles Poland and Lithuania.It is the only land connection between the Baltic states of Latvia, Lithuania and Estonia — all of which are in the EU and NATO — and their European allies.

(more…)

10 Days CAT Workshop by CAT Toppers boost your scores by 20 Marks! Get Started Now!

+ +