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Tackling Black Money: Demonetization Drive Overview

A comprehensive presentation on the impact, history, and future of currency demonetization as a bold step against black money, with insights on corruption and the need for further action.

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Tackling Black Money: Demonetization Drive Overview

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  1. PRESENTATION ON A Bold Step Against Black Money Demonetization

  2. Movement against corruption in Bharat • 2011: 4 April 2011 – 28 December 2011 (Anti Corruption Movement by Anna Hazare) Causes: Corruption in public life • Government corruption • Police corruption • Judicial corruption • Corporate corruption • Kleptocracy • Electoral fraud • Red tape • Discretionary powers of politician • Black money • Goal: Jan Lokpal Bill • Result :Failed to Pass in Rajya Sabha • Renewed :2012 :25 March 2012 – 26 November 2012

  3. Demonetization ? • Withdrawal of a particular form of currency from circulation. • Process of removing a currency from general usage, or circulation • Demonetization is necessary whenever there is a change of national currency.

  4. Why Demonetization of currency ? • India is a cash-based economy in which 98% of the transaction by volume and 65% by value are made using cash. • opening up of the conservative economy in 1991, tax evaders have hoarded a lot of money in their homes, lockers, etc.… which was disturbing the economy in stabilizing the rupee against the dollar. • The proved fake currency route through Pakistan, which is used in terror funding and other anti-national activities in India were beyond the government’s control. • In India, only 3% of the population pay Income Tax and of that 66% files a nil return, India needed to find a route to get better revenues for betterment of India as a growing superpower.

  5. Is this the first demonetization drive 2016 in form of big Rs2000 currency? • No • Demonetization of currency have past ? • Yes • 1938: Rs 10000 | RBI |the British India govt. • 1946: 12th Jan | Morning | RBI Head Quarter Notes were withdrawn & exchanged for Rs.100 or lower denomination. Result: partially successful(146 135)crore

  6. 1954:Re-Introduced • 1978:16 Jan| 9.AM| Morarji Desai-Janata Party The RBI had declared denominations over Rs.1000 as void. • Result: failed • In 2014: zero-balance|18 lakh accounts | Rs.50 Billion • In 2016 :Income Declaration Scheme| 45% tax | deadline of Sept 30, |$10 Billion swelling the tax coffers by Rs.30000 crore.

  7. Is demonetization of currency enough step against Black Money hoarder ? • Yes • NO • Why ?

  8. We Need to Know . • Black money ? Uncounted cash earn- 1500000/- Show-1000000/- -500000/- Uncounted cash Land price 10000000/- 7000000/- 3000000/- • Black wealth ? Gold 200000/- 300000/- Black Wealth Land black wealth Foreign account: Foreign currency

  9. What must be Next Against black money? • Public disclosure of all land ownership data: • Individual • Companies • Trust (Area and price) • Deemed auction of sales of land: × 30 D S B 60% -documented 15% 40% -undocumented 69% B1

  10. Impact of demonetization • Impact on Small farmers, sellers, merchants, daily wage labourers and traders are suffering • Impact on GDP growth is clearly going to be negative in the short run and depends to a large extent on how long the cash crunch is going to take, • Impact on People due to the limit of withdrawal has not been kept at a higher level. • Impact on economy due to cost of currency destruction  • Reduction in illegal activity • Impact on Real state • Impact on inflation • Impact on bank loan • Impact on election campaign

  11. conclusion • Demonetization is an important step in the fight against the finance of terrorism,hawala transaction,fack currency, black money. • The idea of demonetization is good but it has to be taken into consideration that most of the black money is kept in form of land,buildings,gold. • All people should support demonetization. • But government must take more bold step against corruption

  12. Thank you

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