Demonetization: IT Returns Rise, But Modi’s Cashless India Vision in Vain?

The demonetization was implemented on the November 8, 2016. Almost each and every one of us had at least positive notion post demonetization. After the demonetization, the central government had trusted that the Indian economy would advance towards the cashless economy. He also introduced several schemes in order to promote digital transactions. But, however, the information introduced by the Reserve Bank of India (RBI) is taking a look at the picture. We can also say that, in the month of March a year ago, we pulled out more money from the ATM in March this year.

Comparison of the Cash Withdrawn:

In March this year, people withdrew Rs 2,259 billion money from the ATM. This was 0.6 percent more than that month a year ago. However, contrasted with March 2015, the rate was much lower in March 2016. In spite of this, there is an expansion of 11.4%.

That was on account of Prime Minister Narendra Modi, who had reported the closure of the notes of 500 rupees and 1,000 rupees on November 8th. There were no transactions from numerous ATMs for four months after that. Aside from this, on March 13, the RBI lifted all of the bills of money withdrawal.

Nirupama Saundarajan, who is the Economist of India Foundation, said that the patterns of March demonstrate that, in spite of the lack of money, individuals are coming back to their old propensity for using cash. In December 2016, when the government enforced numerous limitations, we withdrew a total of just 849 billion rupees.

Is India Ready for a Cashless Economy?

Managing partner of APA Services, Ashvin Parekh, told that India is not prepared to completely move towards digitization. Presently the information demonstrates that individuals are coming back to the old propensity for keeping cash in hand in the case of any crisis circumstances.

Subsequently of digitization, we had pulled back a total of 15.4 trillion rupees from the system. However, the national bank has not yet revealed about the cash estimate that has come back to the banking system. A hefty portion of the nation’s 2,20,000 ATMs have not yet come back to their ordinary level. There is still a deficiency of cash in the country.

Increase in Tax Base a Good Success Sign?

Now, the government is looking forward widen the tax net. An approximate number of 5.28 crore people filed their returns in the Financial Year 2016. This was a 22% rise, when compared to the previous year. Apart from this, some returns were also filed in paper mode. The income tax department, along with the help of the government, had launched crackdown against these tax evaders. Around 18 lakh persons are identified who had some form of black money with them. All of this show us the efforts of the Modi government to bring back the black money.