Demonetisation and its Aftermath

[koolcoolkg]

He's gonna demonetise Rs. 2000 note also.
Then there will only be 100 and 500 notes as high value.
Plus all this notes will already be in the banking system.

 

[6pack]

Buddy,
Are you a Kongress wala or any other party wala than the present govt in charge.

I think all the decisions are for the good of our country.

Think once what would Modi get by doing all this.

Modi is himself a Bachelor right!

Doing good to the general public is great move even if some difficulty arises out of it but think about the long term effects.

Now Kashmir is so at peace since the announcement in Nov.

Why do you think it happened? Think sensibly.

Modi's move is like hitting 2 birds with 1 stone.

Where is Modi a bachelor? He has a wife.

I don't care what Modi or his party gets by removing notes. I care when I cannot take out my hard earned money from the bank I put it in. Along with me are the crores of Indians standing in lines for hours and going home frustrated. I don't see anything good that came out of this. All I see are old people dying in queues or bank people fainting while overburdened with work or people forced to wait for cremating their family members due to lack of money in banks. Sit with a corpse for a day and you'll gag. Some were forced to wait for a week with a decomposing corpse. You call that good? What about the whole month gone by with half or more of the country waiting in queues and not working? Is that good for the country? What about the countless number of construction workers who lost their jobs overnight? Is that good? Who cares about the poor going hungry or losing their jobs.

What if you lost your job at night suddenly one day if Modi banned computers saying they are evil and can be used for bad things? You'll feel overjoyed right? I mean, no work is a good thing. Lets all sit at home and starve.
Let him hit all the birds he wants with whatever stones he has. Its all for the good of the country. Does not matter if the middle class and the poor die or go hungry. Anyone voicing his decisions must belong to another party or must be mentally deranged. Only Modi and his party can do right and think right. Yeah, I'll sit at home and rethink sensibly.

 

[Party Monger]

https://www.thequint.com/currency-b...-theft-rs-500-1000-narendra-modi-arun-jaitley

http://www.dailyo.in/politics/naren...runch-jan-dhan-black-money/story/1/14335.html[DOUBLEPOST=1480836316][/DOUBLEPOST]

The move by Modi ji regarding de-monetisation was welcomed by every one.

Bhakt Spotted. Yes yes there will be an Electronic Property Passbook(EPPB), just like the chip in the 2000 Rs note.

 

[bssunilreddy]

Where is Modi a bachelor? He has a wife.

I don't care what Modi or his party gets by removing notes. I care when I cannot take out my hard earned money from the bank I put it in. Along with me are the crores of Indians standing in lines for hours and going home frustrated. I don't see anything good that came out of this. All I see are old people dying in queues or bank people fainting while overburdened with work or people forced to wait for cremating their family members due to lack of money in banks. Sit with a corpse for a day and you'll gag. Some were forced to wait for a week with a decomposing corpse. You call that good? What about the whole month gone by with half or more of the country waiting in queues and not working? Is that good for the country? What about the countless number of construction workers who lost their jobs overnight? Is that good? Who cares about the poor going hungry or losing their jobs.

What if you lost your job at night suddenly one day if Modi banned computers saying they are evil and can be used for bad things? You'll feel overjoyed right? I mean, no work is a good thing. Lets all sit at home and starve.
Let him hit all the birds he wants with whatever stones he has. Its all for the good of the country. Does not matter if the middle class and the poor die or go hungry. Anyone voicing his decisions must belong to another party or must be mentally deranged. Only Modi and his party can do right and think right. Yeah, I'll sit at home and rethink sensibly.

AP govt during Mr.Rajashekar Reddy as CM used to give free health scheme, free education, loan waivers to poor farmers and such.

All above schemes are implemented by the AP govt by paying after the month is completed.

This is so huge like Rs.500 crores per scheme per month.

If hospitals, govt & private educational institutions, govt banks and private banks gave free of cost facilities where by they get paid later by the state govt.

Why cannot the same method be implemented by the same institutions now?
Are they thinking only about money making as their goal?

Why blame Mr.Modi or his cabinet for peoples selfishness.

Yes, its your money but be patient.

All citizens wanted change that is why we voted for Modi.
Now when he is trying to do some good. You people cannot have patience.

You all want change instantly. 60 years of Kongress rule should become a paradise instantly. That is what I said think sensibly.
Nothing can be achieved without any pain.
Success does not have a short cut.

Remember that.

 

[Party Monger]

AP govt during Mr.Rajashekar Reddy as CM used to give free health scheme, free education, loan waivers to poor farmers and such.

All above schemes are implemented by the AP govt by paying after the month is completed.

This is so huge like Rs.500 crores per scheme per month.

If hospitals, govt & private educational institutions, govt banks and private banks gave free of cost facilities where by they get paid later by the state govt.

Why cannot the same method be implemented by the same institutions now?
Are they thinking only about money making as their goal?

Why blame Mr.Modi or his cabinet for peoples selfishness.

Yes, its your money but be patient.

All citizens wanted change that is why we voted for Modi.
Now when he is trying to do some good. You people cannot have patience.

You all want change instantly. 60 years of Kongress rule should become a paradise instantly. That is what I said think sensibly.
Nothing can be achieved without any pain.
Success does not have a short cut.

Remember that.

Okay, so if he is doing it for all the altruistic reasons that you say, lets agree to that for a minute. What stopped him from planning it properly? Where is it written that you cant plan so called good moves? The reality is that you are a brainwashed blind bhakt. Impervious to reason logic or common sense. You will just parrot the same lines again and again, like a good pet.

 

[6pack]

AP govt during Mr.Rajashekar Reddy as CM used to give free health scheme, free education, loan waivers to poor farmers and such.

All above schemes are implemented by the AP govt by paying after the month is completed.

This is so huge like Rs.500 crores per scheme per month.

If hospitals, govt & private educational institutions, govt banks and private banks gave free of cost facilities where by they get paid later by the state govt.

Why cannot the same method be implemented by the same institutions now?
Are they thinking only about money making as their goal?

Why blame Mr.Modi or his cabinet for peoples selfishness.

Yes, its your money but be patient.

All citizens wanted change that is why we voted for Modi.
Now when he is trying to do some good. You people cannot have patience.

You all want change instantly. 60 years of Kongress rule should become a paradise instantly. That is what I said think sensibly.
Nothing can be achieved without any pain.
Success does not have a short cut.

Remember that.

Everyone knows that all the State Govt's are pennyless. Maha govt is in lakh+ crore debt. I remember that Delhi govt had done some hospital fees waiver or some health card type of scheme. Nothing came out of it. Why? No money to pay hospitals. Just because AP does this or that does not mean other states can do that.

Success does not have a short cut.

Apparently Modi did not get that memo and went ahead with his half assed plan. The after effects can be seen by all now.

 

[hotshot05]

AP govt during Mr.Rajashekar Reddy as CM used to give free health scheme, free education, loan waivers to poor farmers and such.

All above schemes are implemented by the AP govt by paying after the month is completed.

This is so huge like Rs.500 crores per scheme per month.

If hospitals, govt & private educational institutions, govt banks and private banks gave free of cost facilities where by they get paid later by the state govt.

Why cannot the same method be implemented by the same institutions now?
Are they thinking only about money making as their goal?

Why blame Mr.Modi or his cabinet for peoples selfishness.

Yes, its your money but be patient.

All citizens wanted change that is why we voted for Modi.
Now when he is trying to do some good. You people cannot have patience.

You all want change instantly. 60 years of Kongress rule should become a paradise instantly. That is what I said think sensibly.
Nothing can be achieved without any pain.
Success does not have a short cut.

Remember that.

Did not get your point. Do you want the AP government scheme to be implemented all over India?

Because of corruption, wealth farmers pass themselves off as poor and claim many benefits. Unless that can be controlled, no one will care to launch such a welfare scheme at the national level.

 

[Party Monger]

"All those who are criticising demonetisation have currency chests under their beds", said Sujana Chowdary, Minister of State in the Modi government. I decided to do a 30 minute research on him to pay him in the same binary coin. Here are my findings.

- Sujana Chowdary is the promoter of Sujana Steels, Sujana Towers and Sujana Industries.
- The AIBEA in 2013 calls him out for a default of Rs. 330 crores.(source Moneylife)
- As of 2016, The group owes Rs.5190 crores which was just Rs.2289 crores in 2012. All this while the sales reduced!!!
- The group incurred losses in each of the past 4 years totalling Rs.315 crores.
- At least two Sujana group companies - Sujana Metals and Sujana Towers - have been admitted to CDR (source First Post)
- Each recast of the group looks as window dressing by the banks so that it is not classified NPA. They have rarely paid the banks but increased their outstanding to the banks.
- While Indian banks were hand in glove, the only foreign bank - Mauritius Commercial Bank has filed a case and got orders against him(source:Hindu)
- In the last 5 years, the sales decreased 16%, debtors increased 24% and borrowings (short and long term) increased a whopping 127%.
- The total sales in 2016 were Rs.8046 crores. Of this, the stock in trade purchased is Rs.7085 crores. Damn! It looks more like a TRADING COMPANY with 88% being trading goods.
- In 2016, debtors were Rs.5965 crores and total borrowings were Rs.5190 crores. In 2012, debtors were Rs.4816 crores but total borrowings were just 2289 crores. Debtors increased by 24% and loans by 127%. In 5 years flat! If that isn't an NPA, What is?
- Who gives credit line of 9 months on traded goods? Especially when the margins are less than the interest rate?
- The capital + reserves are Rs. 2121 crores. And market cap is a measly Rs.157 crores. The market cap is just 7% of the book value. Talk about trust in the shares of a company promoted by a minister?
- Against the market cap of 157 crores, the loans are Rs.5190 crores. All these loans are secured largely by debtors which are long due.

There are many conspiracy theories on demonetisation, the most potent being the write off of Bank NPA's and recapitalising of banks(which I don't subscribe to). I am used to the binaries forced on me by the trolls - nationalist or anti-national, Sickular or communal, Bhakt or Aaptard, supporter of demonetisation or a black money hoarder. But when a minister does that, especially of Sujana's ilk, how do you react?

So, Now my binary to him - "Every industrialist with loans and supporting demonetisation is looking for a loan waiver and a write off".
Take that, Minister?

https://www.facebook.com/photo.php?...t=a.10151987391805151.902139.533685150&type=3

 

[NotMyRealName]

The only thing presently stopping the govt from altogether abolishing democracy is the parallel judicial system

Our nation's short history has multiple instances where govts. have completely overridden the supreme court, take indira and morarji for instance. They've even blatantly edited the constitution to suit their whims and fancies. Now the supreme court wants to enforce 'patriotism' by forcing people to stand to a forced national anthem in movie theaters (wondering what happens when it's an adults only film). I'm sorry but this doesn't seem like a democracy any more and I have zero hope left in the supreme court protecting the constitution, which is its main job.

 

[abhi1984]

While I am pissed by the way this has been handled. Nearing a month and still cash shortage is there, some posts in this thread make me facepalm myself for their naivety. So we expect a law to resolve the inherent human nature of trying to get an edge?
Even a better financial economy with mostly digital transactions can't stop "black money" or money laundering. There are other ways to it like benami accounts, currently Jan Dhan seems to be on the top of the list. So anyone expecting eradication of all politician money or even some uber rich guy have to be beyond naive.

Does that mean it was a bad move? No. Because there are black money hoarders, have many in my relatives too who are unable to use the services of hawala or benami accounts. They are now scrambling for their 30 yr hard-earned 60-70 lakhs of hoarded money. Quite a lot of them had declared themselves farmers while running a retail business.
Sure this is not a perfect plan with many loopholes, with me struggling to withdraw money for a month, but then what alternatives can one propose to smoke these guys out, specially given they actually holed up cash in a box.
If the government can collect say even 10-15% of this unaccounted money, I think it is a win. Sure not as great as government will like you to believe but still a good one.

Secondly it seems there is a lack of understanding how money is actually created and the liquidity in the system. Most of the money in the system is not created by central banks. I can't think of any Indian stats from top of my head but I think I read that in US only 3% of notional is created by the central banks. Given how fractional banking works most of the money in the system comes in forms of loans and advances and not created by way of cash. So even though our economy runs on cash, the notional will never be very large. So burned cash is never going to be large enough to dent the so-called liabilities. This excludes the part about how much of the money in the system is actually counterfeit currency.
Still one might say no your figures are wrong and cash is large enough liability. Then why insist on politicians and industrialist getting away with the demonetization and being able to convert their money? Because lets take a random sample of 100 people - politicians, industrialists, normal people etc. Out of that 10% are going to hold 90% of the wealth - accounted or unaccounted. So if they are able to get away with it, what amount of cash is being burnt in reality? Remaining 10%? Or if we exclude some voluntary disclosures, actual earned money, what is really left there?

 

[Lord Nemesis]

Our nation's short history has multiple instances where govts. have completely overridden the supreme court, take indira and morarji for instance. They've even blatantly edited the constitution to suit their whims and fancies. Now the supreme court wants to enforce 'patriotism' by forcing people to stand to a forced national anthem in movie theaters (wondering what happens when it's an adults only film). I'm sorry but this doesn't seem like a democracy any more and I have zero hope left in the supreme court protecting the constitution, which is its main job.

FYI, it is the supreme court that overrode and got rid of many bills passed by Indira Gandhi that gave extensive powers and absolute immunity to politicians. As I said before, the judicial system they may not be perfect, but the two parallel centers of power at least help keep each other in check to some extent.

 

[chiron]

Kind of funny how the counter arguments have died down since the cyber monday offer of 50% cap on income tax on undeclared income proposed by the govt.

 

[cellar_door]

Now Kashmir is so at peace since the announcement in Nov.

This genuinely made me laugh out loud. Reminds me of the Tacitus quote - "They rob, kill and plunder all under the deceiving name of Roman Rule. They make a desert and call it peace."

 

[Lord Nemesis]

Does that mean it was a bad move? No. Because there are black money hoarders, have many in my relatives too who are unable to use the services of hawala or benami accounts. They are now scrambling for their 30 yr hard-earned 60-70 lakhs of hoarded money. Quite a lot of them had declared themselves farmers while running a retail business.
Sure this is not a perfect plan with many loopholes, with me struggling to withdraw money for a month, but then what alternatives can one propose to smoke these guys out, specially given they actually holed up cash in a box.
If the government can collect say even 10-15% of this unaccounted money, I think it is a win. Sure not as great as government will like you to believe but still a good one.

Demonetizing high denomination notes is not a bad move. Almost everybody agrees to that. In fact such notes have no purpose for normal people. But, nothing about this implementation says that it was even half serious about tackling with black money or corruption and neither was it to curb fake currency.

1. Why was it done in such a rush when they themselves know that they were no where near ready with either the new currency, measures to prevent exchange of black money and measures to make it much more harder to fake the currency. Why this particular timing and why not say Jul 2017 or later when they are more prepared for a precise execution.

2. How did the info get leaked to Politicians and Businessmen and how did they get access to new currency before anybody else and apparently before it was even announced in some cases. Obviously because there were people who they wanted to protect and help while targeting others. If I were the person calling the shots and serious about making a strike against black money, I would not let anybody else know about a plan to kill old currency. I will just get the preparations done under a seemingly harmless and routine pretext and then everything is ready, do a precise strike. It is laughable that the govt tried to call their implementation a surgical strike when the supposed targets were not even hit while almost everybody else became collateral and they were asking people to bear with the pain for 50 days. They need to look up what surgical strike means.

3. Why were the Rs 2000 notes printed at all and why was the govt so adamant about printing Rs 2000 notes only for so much time despite sound advise from RBI that smaller denominations should be prioritized as that is what most normal people need in terms of cash for their everyday needs.

4. The black money reserves in cash form is estimated to be only 4%. Was the gains from this whole fiasco even worth the monetary cost for the tax payers and the suffering. Was the impact to black money hoarders greater than the impact to normal people. Obviously not. Losing 20~25% of their black money stash can hardly be called suffering compared to anything that honest tax payers who already paid their taxes had to go through.

5. Has the govt managed to get any black money deposited back? It is absurd to think that anybody who has been dishonest all these years and didn't relent even after last opportunity would now deposit their hoard into the banks and take major risks when they could just exchange it for new currency in the black market. Also why the offer to convert their black money to white at expense to tax payers when all that was required was to focus on preventing illegal exchanges. All that is required is proper tracking of who submitted how many notes of each denomination and could have been done easily if proper planning were done.

 

[Mr.J]

I have answer to your 3rd point.

Everyone involved in this knew that people needed cash and needed it ASAP. So some genius came up with the idea for 2000 Rs. note. For about same efforts of printing 500 or 1000 Rs. notes, they could cover the same value with 1/4 or 1/2 number of notes. Of course that genius forgot to take into account just how many high denomination notes are in circulation and how the bloody hell people were gonna get change for 2000 Rs. when the next available note was 100 Rs. Like today when I had to spend an hour in 3 different queues just so I could pay for local pass with 2000 Rs. notes

Example of typical Indian Jugaad mentality.

 

[abhi1984]

Demonetizing high denomination notes is not a bad move. Almost everybody agrees to that. In fact such notes have no purpose for normal people. But, nothing about this implementation says that it was even half serious about tackling with black money or corruption and neither was it to curb fake currency.

1. Why was it done in such a rush when they themselves know that they were no where near ready with either the new currency, measures to prevent exchange of black money and measures to make it much more harder to fake the currency. Why this particular timing and why not say Jul 2017 or later when they are more prepared for a precise execution.

2. How did the info get leaked to Politicians and Businessmen and how did they get access to new currency before anybody else and apparently before it was even announced in some cases. Obviously because there were people who they wanted to protect and help while targeting others. If I were the person calling the shots and serious about making a strike against black money, I would not let anybody else know about a plan to kill old currency. I will just get the preparations done under a seemingly harmless and routine pretext and then everything is ready, do a precise strike. It is laughable that the govt tried to call their implementation a surgical strike when the supposed targets were not even hit while almost everybody else became collateral and they were asking people to bear with the pain for 50 days. They need to look up what surgical strike means.

3. Why were the Rs 2000 notes printed at all and why was the govt so adamant about printing Rs 2000 notes only for so much time despite sound advise from RBI that smaller denominations should be prioritized as that is what most normal people need in terms of cash for their everyday needs.

4. The black money reserves in cash form is estimated to be only 4%. Was the gains from this whole fiasco even worth the monetary cost for the tax payers and the suffering. Was the impact to black money hoarders greater than the impact to normal people. Obviously not. Losing 20~25% of their black money stash can hardly be called suffering compared to anything that honest tax payers who already paid their taxes had to go through.

5. Has the govt managed to get any black money deposited back? It is absurd to think that anybody who has been dishonest all these years and didn't relent even after last opportunity would now deposit their hoard into the banks and take major risks when they could just exchange it for new currency in the black market. Also why the offer to convert their black money to white at expense to tax payers when all that was required was to focus on preventing illegal exchanges. All that is required is proper tracking of who submitted how many notes of each denomination and could have been done easily if proper planning were done.

I think I covered a lot of ground in the post when I talked about naivety. Well executed government plans are a rarity not a norm, thats why many of them end up being cited as case studies. We keep criticizing the government for pulling things quickly, when forgetting that given time things would get extended a lot. There has been an example of new cheque formats RBI wanted to push. It went on for months with banks being unwilling to comply and people not willing to turn up to their banks to change them. We have already seen extensions and mostly will see another extension of 30th Dec but thats just me and we have to wait and see.
Secondly, people working in RBI or mints are not exactly Jason Bournes or RAW agents. Unless of course the government actually had them working in the mint for months leak proof was impossible. But then what about their families, wont they question what is happening? Unless of course army was given this as a secret mission or something. In that scenario the whole news media and this thread would have been about dictatorship and how army is getting their hands into everything. And then again its being utterly naive to quote politicians word to word. They are politicians for gods sake and not paragons of truth. They run their mouths, its up to people to separate wheat from chaff and make a decision. If one were to believe everything Modi says, he might as well be a protein shake drinking body builder with 56 inches chest or something. Or Kejriwal would have filed a case against Sheila Dixit till now.

As for 2k notes, I think @Mr.J answered it. The amount gone from the market was high value, they thought they should print high value only. Of course they forgot the "change" part. To repeat, "well executed government plans are a rarity".

4%? Hmm, then the other point in thread of burnt cash doesn't hold water. And it is a good point, though I would certainly like to see the source of this figure and how was it really calculated because that will be fascinating.

I don't really understand the 5th point, isn't it a non-starter if 4th is true? I mean why would I want the government to expend effort (ie be supremely effective) trying to track 4% of the money to catch hoarders? The whole net will catch small timers. The end result while might not have required people standing in the queue (not a minor inconvenience like the government says) will still be the same. I would rather have government not look into black money at all really because the solution to track the other 96% will require quite the overreach.

 

[NotMyRealName]

FYI, it is the supreme court that overrode and got rid of many bills passed by Indira Gandhi that gave extensive powers and absolute immunity to politicians. As I said before, the judicial system they may not be perfect, but the two parallel centers of power at least help keep each other in check to some extent.

The point is not the quantum of good vs. bad rulings of the court, rather that this kind of judicial overreach is a dangerous precedent, where a couple of judges have spoken for the court and passed an emotional, not legal ruling. It doesn't affect me in the least because i almost never go to the cinemas, but it scares the $hit outta me to think what could be next.

If you think the supreme court is able to keep the govt. in check then a quick look at history will show that even though they've tried, the govt. has often overridden them and simply edited the constitution when they decided enough haggling with the court.

A good example to take here is the US supreme court, which ruled twice that individuals have the right to burn the flag because it is freedom of speech. This is one point where even Hillary and Trump both agree, that flag burning deserves punishment, but the court decided instead that individual liberty and freedom is more important than displays of 'patriotism'. Personally, I would never burn the national flag just to show protest, but i'm stunned that the US SC is so pro-people.

I found this to be a very illuminating article.

 

[Lord Nemesis]

Well executed government plans are a rarity not a norm, thats why many of them end up being cited as case studies.

As failures that didn't serve a purpose.

We keep criticizing the government for pulling things quickly, when forgetting that given time things would get extended a lot.

A poorly planned and rushed idea that doesn't serve its purpose and causes more harm than good is any day worse than a well thought planned idea that takes so long that often times it doesn't even see the light. You don't jump to the wrong side of the road and speed your vehicle to 100 Km/hour just because you want to reach home ASAP.

Secondly, people working in RBI or mints are not exactly Jason Bournes or RAW agents. Unless of course the government actually had them working in the mint for months leak proof was impossible. But then what about their families, wont they question what is happening?

Currency printing happens regularly and design changes too are done regularly even if they are subtle. There are valid reasons for minting new currency and a strike against black money is the last thing that comes to mind. In fact, often times large denomination notes were printed to ease hoarding. So, unless somebody is in such a rush as to reveal their plans, nobody needs to know how the new currency is going to be transitioned.

As for 2k notes, I think @Mr.J answered it. The amount gone from the market was high value, they thought they should print high value only. Of course they forgot the "change" part. To repeat, "well executed government plans are a rarity".

It doesn't require a genius to understand that what most normal people need for everyday needs is the smaller denomination notes. At the very least, somebody who claims that high denomination notes are used for hoarding ought to know that as well. RBI themselves made statements that Govt was advised that they should be printing smaller denominations, but was forced to print the Rs 2000 notes. In fact, they apparently didn't even stop after it was made clear in first few days itself. Does that mean that the govt thought they knew the economics of the country better than RBI? It may even be one of the reasons for the former RBI head to distance himself form that post as he may be aware of this and that the govt would try to make RBI take the blame when things go out of hand.

4%? Hmm, then the other point in thread of burnt cash doesn't hold water. And it is a good point, though I would certainly like to see the source of this figure and how was it really calculated because that will be fascinating.

These are estimates made based on studies by various international financial firms and other bodies. The black economy of India is pegged at around Rs 38 Lac Crore. The entirety of the cash in circulation in the country is less than half of that.
The highest estimate on the cash share of the black economy that I have seen is 10%, but most normal estimates state it as 4 to 6%.

I don't really understand the 5th point, isn't it a non-starter if 4th is true? I mean why would I want the government to expend effort (ie be supremely effective) trying to track 4% of the money to catch hoarders? The whole net will catch small timers. The end result while might not have required people standing in the queue (not a minor inconvenience like the government says) will still be the same. I would rather have government not look into black money at all really because the solution to track the other 96% will require quite the overreach.

That is exactly what has happened. The govt is already worried that the currency deposits in the banks is way higher than expected and its only been 3~4 weeks. That means that either the black money in cash form which they expected to not get back into banks is either much lower than they expected or that almost every hoarder is able to exchange their black money at banks. In either case, this would prove that the suffering that other folk had to go through is utter waste.

 

[NotMyRealName]

To all those debating Modi and his demon etisation actions, consider that a) he's a politician and thus b) most of what he says is probably a lie/MODIfied-truth to suit his party/benefactors' interests. The same holds true for almost all political parties, AAP included. Just because he's shouting it out in rip-roaring fashion doesn't make it true.

And also consider that regarding the current hot topic of going cashless, ultra-modern countries around the world haven't completely implemented it yet, south korea is close, but look at their tech infrastructure. When 300 million illiterate people and 300 million un-banked people and 300 million people who shit on the side of the road can finally be digitized, THEN talk about going cashless or even less cash. Like in a decade or two.

 

[NotMyRealName]

...It may even be one of the reasons for the former RBI head to distance himself form that post as he may be aware of this and that the govt would try to make RBI take the blame when things go out of hand...

I was really excited and had high hopes when Mr. Rajan, who basically predicted and warned the economy about the economic collapse when he was in the IMF (but no one paid heed), took over as RBI chief. But all the political bashing he took for asking the real estate lobby to price realistically, before asking him to simply slash interest rates, followed by the BJP MP bashing because he spoke about growing intolerance (irony much?) led him to finish his term and GTFO. It sounds defeatist and escapist even but no one in their right mind would really want to live in the state this country is in now.