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"Do good intentions matter if they lead to bad outcomes."

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by shubham jaiswal on Sat Nov 26, 2016 6:47 pm

In my opinion if something is being done with good intentions then it is good, although it might result in bad outcomes in short run but in long run they are always good.
I do agree that sometimes tasks undertaken with good intentions results bad outcomes because the cause might be good but the way the idea is implemented makes all the difference. In case of " Demonetization" despite of all the pros it possess it also has some of the cons that it.
Prime Minister Mr. Narendra Modi said Rs 500 and Rs 1,000 notes will cease to be legal tender at midnight in a late evening address to the nation on Tuesday, unleashing his government’s latest attempt to root out black money, corruption and terror financing.
The surprise move left fellow citizens flabbergasted as they sought to digest what this would mean to their daily lives but Modi exhorted them to look beyond any passing misery.
“Let us ignore the temporary hardship,” he urged. “Let us join this festival of integrity and credibility.” Modi also said that new Rs 500 and Rs 2,000 notes will be issued by the Reserve Bank of India (RBI).

India Inc praised the move, although some surmised that the “surgical strike” on black money could disrupt the functioning of the economy in the short term and lower the value of assets such as real estate.

Currency notes can be exchanged at banks and post offices from November 10 to December 30. “Keeping in mind the supply of new notes, in the first few days, there will be a limit of Rs 10,000 per day and Rs 20,000 per week,” Modi said. “This limit will be increased in the coming days.”
From November 10 to 24, the limit for exchange will be Rs 4,000. That will be increased from then to December 30. Beyond that, exchanges can be made at specified Reserve Bank offices until March 31, 2017.
ATMs won’t work on Wednesday and in some places on November 10 as well. “In the first few days, there will be a limit of Rs 2,000 per day per card,” Modi said. But government hospitals, petrol stations, the railways and crematoriums will accept cash payments in those denominations for a few days.

Finance Minister Arun Jaitley said ," the government's demonetisation move is going to have "a positive impact on the economy, including GDP".
Jaitley said there will be a positive impact "because a lot of money that operates in the shadowy economy will now become part of the banking structure" and banks "will have a lot more money to support the economy.

‘ONLY WAY TO GET BLACK MONEY’

“It is the only way to get black money from the system,” said Deepak Parekh, chairman of Housing Development Finance Corp. “There will be some lull in the economy for the short term. Construction activities would be affected. It is a bold move before the Uttar Pradesh elections.”

ICICI Bank Chief Executive Officer Chanda Kochhar said, “It is perhaps the most significant move ever taken to curtail the parallel economy.”
The move will push people toward non-cash transactions.
“It’s a hugely positive development,” said Snapdeal CEO Kunal Bahl. “A much larger proportion of India’s GDP will now flow through digital pipes. It will boost the digital economy and instruments like wallets.”
Kishore Biyani of Future Group said its stores would remain open so people use up their Rs 500 and Rs 1,000 notes.
“For the benefit of consumer we are asking our stores to be open till 11.50 pm to help people buy their daily needs,” he said.
'IMPACT OF DEMONETISATION ON INDIAN ECONOMY'
A. Financial/business impact:-
⦁ People with large amount of black money are using unscrupulous means to convert it into legitimate currency
⦁ A taxpayer has to stand in queues to withdraw his hard-earned money.
⦁ Online companies are having the last laugh as most of the white income class is resorting to online.
⦁ Small/medium sized business relying on cash transactions are seeing a total demand collapse.
⦁ Gem and Jewelry business will be hard hit.
⦁ Real estate prices will fall and the transactions volume will drop.
⦁ Second-hand car market will crash badly.
⦁ CAs will be having a time of their lives.
⦁ Banks will be having a tough time. They will be flooded with cash.
B. Political impact :-
BJP will gain tremendously. Modi’s portrait could replace Gandhi’s portrait in coming time on the walls of government offices.
1. All parties will join hands to paint the demonetisation scheme as a big scam.
2. Normal life may be impacted because of demonstrations.
3. BJP may do reasonably well in Punjab and UP elections.
4. No cash doles out in elections. Whole electioneering will change forever.
c. Social impact:-
1. Low-income people have been impacted as their payments are delayed.
2. Some people may commit suicide.
3. Cashiers and bankers will get due respect in society.
4. Marriages to become cheap. Death of dowry.
5. All medicines in white money.
6. Big blow to gambling.
7. Death of drug mafia and terror networks.
8. People now know moral status of their peers and neighbours better.
D. Impact on Indian economy
⦁ GDP will be impacted as consumption will fall -Indirect tax collection may be lower.
⦁ Disorganised work to move to organised sector.

* Demonetisation may benefit India in long term:
1. Income taxes rates may come down.
2. Loans will become cheaper.
3. Housing will become affordable

E. Asset classes:-
a. Bonds prices to increase in the near future.
b. Real estates to fall.
c. Gold rates to fall.
d. Equity markets to gain in next six to 12 months.

As with all good things, there is a bitter truth here as well. The black money may reemerge as now there is Rs 2,000 notes so paying bribes will be much easier. In fact, if the same government does not come to power again, then there is risk of reversal of some of these policies. Bribes may be paid in gold, Foreign currency or smaller denomination notes, or through consumer durables. The whole plan may boomerang as there is a complete demand collapse and people lose their jobs in the unorganised sector in the near term. So there is need for strong administration and effective policy framework to make sure these initiatives are implemented in the same nerve as they were intentioned.

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by himanshu goyal on Sat Nov 26, 2016 7:32 pm

What is demonetization?

Demonetization for us means that Reserve Bank of India has withdrawn the old Rs 500 and Rs 1000 notes as a official mode of payment. It is the act of stripping a currency unit of its status as legal tender.
Demonetization is a generations’ memorable experience and is going to be one of the economic events of our time. Its impact is felt by every Indian citizen. Demonetization affects the economy through the liquidity side. Its effect will be a telling one because nearly 86% of currency value in circulation was withdrawn without replacing bulk of it. As a result of the withdrawal of Rs 500 and Rs 1000 notes, there occurred huge gap in the currency composition as after Rs 100; Rs 2000 is the only denomination.

The idea of demonetization is good but it has to be taken into consideration that most of the black money is kept in the form of land, buildings or gold or kept abroad. What is in cash constitutes only 4% of the total amount of black money on which taxes are not being paid. Out of this, a lot of money is in circulation in everyday transaction like if someone is building a house; the bill is not paid through banks for sand, bricks etc. This money goes into the other systems though it has been drawn from bank. These things will come under control with this step.
Now after taking such a step it is necessary to implement it properly as it requires a lot of efforts to reap benefits out of it. but as far as execution is concerned it has raised the serious question about the difficulty poor farmes, small traders and common man is facing. people have to stand in long queue at ATMs for getting cash. ATM machines are not working properly. Banks need to operate overtime to meet the demand of their customers. As the transactions limit is set so it created problem for household who are in urgent need of money.

Troubles due to demonetization:
1) Foreign tourist are facing problem.
2) One has to stand in long queue to withdraw his own money from his own account.
3) Small farmers, sellers, merchants, daily wage laborers are suffering because of lack of proper planning.

Overall it can be concluded that no doubt these good intentions are resulting in some bad effects but people should realize that these small and short term troubles will not even be remembered by them, when they will be enjoying the benefits of this practice in their own nation. Smile  Smile  Smile

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by yashika_damani on Sat Nov 26, 2016 7:35 pm

“Good governance with good intentions is the hallmark of our government. Implementation with integrity is our core passion. – Mr. Narendra Modi
He proves it right by taking the right step of demonetization as it is not easy as countries like Europe failed to implement it effectively. So they took back their decision.
Demonetization is the act of taking back a currency unit of its status as legal tender. Through this decision India will move forward and it marks the beginning of Digital currency era.
Troubles faced because of  demonetization: Basically poor farmers don’t have their own ID cards so these groups who lack the access to ID documents are chief among these.
This move results in a severe shortage of Rs100 notes that in turn ensures that the large tender of the new Rs2000 notes is rendered useless for routine everyday transactions.
The rural poor who lack the infrastructure to set up deposit accounts and who currently hold all their money in cash form have been directly hit.
Positive impact :
• It has ended parallel economy to a great extent  
• Real estate value will go down
• Increase in usage of digital platforms.
• Terrorist funding comes almost to an end.
• Interest rates went down
• Regular flow of money in the economy.
• Will increase the transactions through legal methods - People will deposit their savings in bank, gain interest from the deposit and secure it from theft.
[b]Negative impact:
• Crashing of stock market.
• No funding available to political parties for their election campaigns.
• Shortage of liquidity (cash) in the market.
Immensely painful in short run but very beneficial in the long run. But in all this move has left the biggest chunk of black money untouched – the stacks that lie in undisclosed accounts in Swiss Banks.

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by kshipra on Sat Nov 26, 2016 7:46 pm

There's a saying: "The road to Hell is paved with good intentions" Now, that doesn't mean that everyone who fails even with good intentions is going to hell. It merely means that sometimes intention isn't good enough.

I can appreciate when someone is truly trying to make a difference and they fail at it, causing unforeseen harm or pain. However, most times the failing can be prevented by thinking things through more thoroughly and making better plans.

The intention does not outweigh the responsibility to make sure your actions mirror the intent.
If you were aware that your actions can cause harm to others, you should have taken steps to prevent or minimize it to the extent of your ability.
If you were not aware that your actions can harm others, it is your responsibility to fix their consequences, including making reparations for any damage you caused.

Troubles due to demonetisation:-
It's simple , the problem everyone is facing right now is lack of money to exchange for the balance of amount you had paid.
From Nov 8 onwards no business organisation or shops expect hospitals and some government offices and petrol pumps(allowed for a short period of time)are given the permission to collect 1000rs and old 500rs notes as it was banned.If they are collecting these banned notes,then it would be considered as black money(without source) when they are submitting the income reports to income tax. As people are receiving only 2000rs from banks in exchange of their old money,they are not able to pay the balance amount if a person made a purchase of 1000rs, then there is no money to pay back the balance 1000rs(either the shopkeeper will run out of 100rs notes or lower dimension notes). The shopkeeper will have no other option other than to cancel the purchase and at the same time the buyer will not be able to get the products he need. This is happening all over India from hotels to medical shops, from hospitals to bus depot's.
In a broad sense all you get from the bank is 2000rs notes and you won't be able to eat a meal from a hotel as they won't have the change to pay you back(unless you are going to some 5 star hotels).

Impact of demonetization:-

The cascading impact of Prime Minister Narendra Modi 's demonetisation move will affect every single person living in India as it could put the single biggest economic reform in the country, the GST (Goods and Services Tax) Bill, on the backburner for another financial year.
Besides the inherent logistical and procedural difficulties in the already tight race against time to implement GST before 1 April, 2017, there are more valid political and economic reasons for the government to go slow with the bill. "The ruling dispensation and the nation cannot afford to enforce two massively 'disruptive' policies in roughly the same year’.
Because of immense pressure from within the BJP and the states ruled by the party, as well as other states ruled by rival or supportive parties, the Centre is likely to postpone the 25 November GST Council meeting. "Lack of consensus" could be cited as the official reasons.
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Demonetisation has had its own disruptive impact on the economy and the society. Weeks have passed since the implementation of the ban on Rs 500 and Rs 1,000 notes, the banks have only been able to retrieve about 10 percent of the demonetised notes. The situation with replacement of old notes with new legal tender continues to be grim. Though queues outside banks and ATMs have become thinner, they are still far too long.
As per the data released by RESERVE BANK OF INDIA (RBI) on Monday, exchange of old notes and cash withdrawals amount to Rs 1.36 lakh crore as against an estimated total of Rs 14 lakh crore (less than 10 percent) worth of demonetised notes.

As per their estimates, it will take another 50-60 days to replenish about 50 percent of the cash that had gone out of circulation due to demonetisation. This means that by the time Modi's 'harsh period' ends on 30 December, the burden of cash crunch would ease but not end.


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Re: "Do good intentions matter if they lead to bad outcomes."

Post by abhik on Sat Nov 26, 2016 7:49 pm

The idea of demonetization is good but it has to be taken into consideration that most of the black money is kept in the form of land, buildings or gold or kept abroad. What is in cash constitutes only 4% of the total amount of black money on which taxes are not being paid. Out of this, a lot of money is in circulation in everyday transaction like if someone is building a house; the bill is not paid through banks for sand, bricks etc. This money goes into the other systems though it has been drawn from bank. These things will come under control with this step.
Small farmers, sellers, merchants, daily wage labourers and traders are suffering because of lack of proper planning, intelligence and foresight such as recalibration of ATM machines. There was need to pile up enough 100 Rupee notes and other smaller denomination notes in the market before taking this step.
Impact of this demonetisation in the economy would be as follows:-
1. Deposit in the short term may rise, but in the long term, its effect will come down.
2. India risks its position of being the fastest growing largest economy: reduced consumption, income, investment etc. may reduce India’s GDP growth as the liquidity impact itself may last three -four months.
3. The real impact will be on counterfeit/fake currency as its circulation will be checked after this exercise.
4. The major impact would be on the people having their black money in the form of cash.
5. A lot of money that operates in the shadowy economy will now become part of the banking structure and banks will have a lot more money to support the economy.

Undoubtedly, a massive step! Rather, a revolutionary step. But before hailing Modi ji, a few other aspects too should be closely analysed!
-When we say, phasing out of higher denomination notes will help in fighting against corruption and trend hash tags like #IndiaFightsCorruption, how can one be so sure that this will end corruption? I mean, yes the circulation of black money takes place in higher denomination notes, but what if now people use a 100 rupee note to bribe someone?
-A huge population still is still not included in the banking system, naturally they’ll panic. Where will they get their notes exchanged? Where will they get their notes deposited?
-Many people will happily buy gold!
I guess we should wait for a few months to see the positive impact of such a measure.

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by NehaKumari on Sat Nov 26, 2016 8:14 pm

Demonetization is a serious step taken by our PM Mr Narendra Modi on 8 november 2016 at midnight live.Its a process of removing or banning currency notes of particular denominations in order to remove corruption and black money kept by people.This serious step was taken by our PM is now suffering normal category people.Infact they are facing problems in exchanging their old currency notes in order have new currency notes.But there are few people who are against this decision and it simply means that they are having black money.
Recent news came that a huge amount of rs 500 notes was drained by the people.And this clearly shows that they were having black money.This step was taken with a good intention but it in turn was having a bad impact on farmers,lower income people and other class people too.Effect of this was serious in our indian economy and market.Due to this every sector of business was affected a lot.There was a major stess in indian agriculture.
Cash deposits which were above rs 500 and rs 1000 may attract tax authorities to extract 50% of tax according to Income Tax Act approved by Cabinet and 25% of the original deposits will not be allowable to withdraw for 4 years.And if these deposits are not detected then 90%of tax would be charged for these people.Our government have also given a facility of exchanging old currency within 50 days with effect from 10 november.
Impacts of demonetization are as follows-
1.Removal of black money stored in form of rs 500 and rs 1000.
2.Chaos and confusion in banks and public is suffering a lot.
3.Public are moving towards digital payments.
4.Political parties are donating a huge denominations for their elections.
5.Terror funding were dismantled.
6.Resale of real estate.
Hence we can say that demonetizing is troubling each and every field of business and people's life as well.Even old people are standind in long queues.Indian passengers are mostly affected.
Therefore,we can say that good intentions do matter and thus leads to bad outcomes,And we have seen a live example in our life.Not only this his step was for the sake of the public and our country economy and market.


Last edited by Neha Kumari on Sat Nov 26, 2016 9:22 pm; edited 2 times in total

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by Rhythm on Sat Nov 26, 2016 8:20 pm

Demonetization means withdrawal of a particular form of currency from circulation. At the stroke of the hour on midnight of 9th November 2016, our country has lost 86% of its monetary base. Media has been praising Prime Minister’s masterstroke by which he has reportedly destroyed the base of corruption in India. By this single move, the government has attempted to tackle all the three issues affecting the economy i.e. a parallel economy, counterfeit currency in circulation and terror financing.

Present impact on our country-

> Small farmers, sellers, merchants, daily wage labourers and traders are suffering because of lack of proper planning, intelligence and foresight such as re calibration of ATM machines. There was need to pile up enough 100 Rupee notes and other smaller denomination notes in the market before taking this step. It is being said by critics that this step was taken only to bolster the image of the Prime Minister as he has been unable to deliver on GDP growth, inflation and bringing the black money from abroad.

> Demonetization is an established practice in monetary policy to tackle black money. The Prime Minister has explained why this is a financial surgical strike. It was meant to be suddenly implemented. In the past, demonetization has taken place twice but it fails because the idea is to tackle the black money existing in circulation. This is not tackle corruption or the Government is not saying that 100% corruption will be tackled. If announcement and time would have been given, this step might not have been successful in controlling black money and counterfeit currency in circulation coming from Pakistan, Nepal or other countries.

> People are facing problems because the limit of withdrawal has not been kept at a higher level. If this would have been kept at a higher level, there were chances that the recycling of black money might begin. The ideal money in circulation has to come to the banking channels.

> It is also being said that what is being attempted is replacement of currency and not demonetization itself which was unnecessary. This is a terrible setback for the international standing of the Indian economy. At this time, the economy is struggling with slowdown. There is demand sluggishness in the economy leading to practically no private sector investment and stagnant industrial growth.
> If we look at the farm sector, this is the harvest time. Farmers generally deal in cash and India is also largely a cash economy. The cash transactions in this economy are far more than the total number of electronic transactions done on a daily basis. In the tribal heartland of the country, the poor people through middlemen are getting their currencies exchanged for Rs.300 or Rs.400 because of lack of proper information which is hitting them.

> The stock of the black economy constitutes a major part of the GDP is significant. Even if 50% of this amount is withdrawn, the kind of relief that RBI will get on its liabilities and the sort of deposits commercial banks will get will lead to a rise in the deposit and later on there will be decrease in lending rates plus fiscal deficit. The black money in circulation is like a steroid in the economy which keeps the demand going gives a feeling that everything is working well. The problem is that investment is not taking place in the economy and the rate of growth of capital formation is down. The only way to bring this up is to divert more funds into investments which will happen when the cost of capital comes down.

Demonetization is going to leave its impact for short and long term on parallel and main economy as summarized below.
Parallel Economy:

> Parallel economy is mainly based on cash transactions that's why has hit hard by recent demonetization.
> Some money of parallel economy is going to come in formal economy and will work as a boost for main economy.
> Finance of terror and other unsocial organization have destroyed overnight because of sudden invalidation of cash.
> It will be hard time further for parallel economy to sustain with limited cash availability.
Main Economy:
> However main economy has also affected by lack of cash and it will result in deflation.
> Money coming from informal economy to formal economy will increase liquidity for banks which further decrease interest rate and help for banks to handle their NPA.
> Reduced interest rate will boost investment.
> Land prices will fall and people will be able to afford houses.
> GST will effective from next year and combination of GST and demonetization will increase the growth rate of Indian economy.
Cashless transaction will increase in upcoming time and it make ready India to go for fully cashless country. Demonetization is beneficial step for main economy and will be helpful to curb the corruption and black money.

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by Chander singh on Sat Nov 26, 2016 8:21 pm

In my opinion good intentions matters, like in the current scenario our Prime Minister Mr Narendra Modi has announced the demonetization of Rs 500 and Rs 1000 but if it leads to bad outcomes it can effect the economy in opposite way. This decision was taken basically to stop black money, extortion, and reduce corruption.
But because of this step small farmers, labour, vendors, retailers are suffering because of the shortage of cash
in banks and long queue outside ATM.
We Indians prefer cash payments rather than E- payments, rural peoples even don't know how to make E-payments
because of lack of tech-knowledge how to operate smartphone and usage of internet.
One more aim behind this step is to force our citizens to use E- wallets as it increases usage of plastic money.
This decision of Indian government act as a Bumper offer for some firms who works as a payment gateway like
Paytm, freecharge, mobiwick etc.

The basic positive impacts of Demonetization are:-
1) The real impact will be on fake currency as its circulation will be checked.
2) The value of Indian rupee will increase after some time.
3) Reduce flow of money to terrorism and drug/human traffickers.
4) Prevent money lenders to lend loans to villagers at high interest rates.
5) It will bring transparency.

Negative impacts of Demonetization:-
1) The rural and uneducated people are facing many problems in making online transactions.
2) Regular users of cash such as households or retailers faces problem.
3) Share market is affected badly.
4) Shortage of 100 rupee notes in the market.

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by sadashiv on Sat Nov 26, 2016 8:36 pm

Yes! Intention matters for all good cause. it will always be good no matters how tough condition becomes. Proper implementation and communication of your attention need to be take care off.
The impact of demonetization in current situation is in bit tough and bad condition. As there are huge queues standing for hours outside the BANKS & POST-OFFICES . But if you want good clean system then you need to step up and co-operate with the government as well.
The impact of demonetization in current situation is bit worst as there are huge queues standing for hours outside the BANKS & POST OFFICE.  There is no liquidity of cash on the system. But if you willing to make difference to country then you need to step up and co-operate with the government.

Demonetization of rs 1000 note and re-monetization of rs 500 note will strength our system and give power to our government . Government will operate and take charge to cash payments to every where  Government will control each and every single cash transaction and card payments .This will help to track the all transaction and government will get more tax. Recovered tax will be given to needed ones, because of that the gap between the RICH and POOR will come to close what exactly our country needed. Smile  Smile

Small farmers, sellers, merchants, daily wage labour and traders are suffering-

Troubles are very important to take care of by helping the labour and daily earning peoples who's occupation depends upon what they earn today and reach home. It can be sort out by giving the responsibility to MLA'S & MP'S to notify and take care off. The formers are struggling as this is a time of KHARIF harvest and start of RABI sowing, partly explaining why this period is dubbed the ‘busy season’ from a standpoint of credit demand. Agricultural go-downs need to take care by providing them the necessary things at right time with their cards not by asking cash right at this sort of situation.
There is the marriage season going on they are also facing 'n' no. of problems because of the same.

There are major impacts of Demonetization in-
1) Black money- In India black money were saved and stored in huge no. but because of demonetization its value becomes good for nothing. With this decision black money concept done and dusted.

2)Economy-Demonetization may reduce India’s GDP growth as the liquidity impact itself may last three -four months. Issues affecting the economy i.e. a parallel economy, counterfeit currency in circulation

3)Moving towards digital payments-Demonetization will likely result in people adopting virtual wallets such as Paytm, Ola Money etc.: This behavioural change could be a game changer for India.

4)Terror funding fake currency- This will stop terror funding Fake Indian Currency Notes (FICN) network will be dismantled by the demonetization measures. Taking out 500 and 1000 rupee notes out of circulation will have a lasting impact on the syndicates producing FICN's, thus affecting the funding of terror networks in Jammu and Kashmir, North-eastern states and Naxalite hit states.

5)Real estate-  There has for long been a strident demand to bring transparency in the sector so that the it becomes more organized, and cash dealings must necessarily be the first symptom of the disease to be dealt with.The rates will decrease and the dream of every one to have their own home will come true.

6)GST- It will be more effective combination of GST and demonetization will increase the growth rate of Indian economy.
We all are accepting that this is a good decision So monetization comes with immense benefit but GOI should also consider about informal sector where most of the payment is in cash only.

Hence we can say the move is good but Utilitarian Principle would have made it further better.Demonetization is a generations’ memorable experience and is going to be one of the economic events of our time. Its impact is felt by every Indian citizen.

 At the end i wants to say that '' hoping that the good intention will become successful and we will cheering it the most by this historical bold decision of PM" Wink Wink

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by himashish on Sat Nov 26, 2016 8:43 pm

Yes, good intentions matters. This might sometime prove to be or give a bad outcome. It is possible that it would have some bad effect but ultimately it is solely the result that matters.
Let us see this statement in context to demonetization. First of all, what is demonetization. It is the act of stripping a currency unit of its status as legal tender. Demonetization is necessary whenever there is a change of national currency. The old unit of currency must be retired and replaced with a new currency unit.
On November 8,2016 our honorable Prime Minister Mr.Narendra Modi announced in a broadcast to the nation that Rs.500 and Rs.1000 currency notes would no longer be recognised legally as currency. The bold and a significant decision taken by Mr.Modi was to remove corruption from India, tax cheating, to tackle or cut short black money in the economy, stop the notes used for terrorism from India and for the betterment of the society. His fight is to eliminate the corrupt storage of black money. Eliminating large denominations makes it harder to hide large amount of cash. The intention of our Prime Minister is pretty clear and right but it has some bad effect in the entire nation. For example, small farmers, sellers, merchants, maids, daily wage labours and traders have suffered the most as because many of them do not possess a bank account or many rural people do not have cheque to exchange money. These particular group of people are upset with this decision. And in terms of urban area, people are making long queue whole throughout the day to exchange their notes and also infront of the ATM to withdraw money. There was also a limit imposed on how much one could exchange or withdraw from their accounts. People also wanted smaller currency notes to serve their daily needs. A packet of biscuit costs Rs.20, and in that case no shopkeeper would give or there is a very rare chance of giving change for Rs.500. So in this way people are suffering from this decision, mostly those who rely on cash transactions not those who pay through plastic money. But our Prime Minister has already told to create bank accounts to rural people, but we can see some are happy while others are not.
Impacts:-
1)Impact on black money
2)people investing in gold
3)lesser tax rates
4)cash less economy
5)impact on stock market
6)economic growth
7)rise in the value of money
8)Rich and poor on the same pace.
9)Impact on real estate
10)impact on society
11)Increase in bank deposits
12)Terrorism related activities will be controlled.
13)It will help the common man as the land prices will fall because of shortage of sellers and buyers.
14)transformation from parallel to formal economy.


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Re: "Do good intentions matter if they lead to bad outcomes."

Post by ruchi gupta on Sat Nov 26, 2016 8:47 pm

if a person is doing something with good intentions then they should be appreciated but at the same time if the outcomes of that thing is not good then it is something worth modifying.

major troubles of demonetization is:-
The rural poor who lack the infrastructure to set up deposit accounts and who currently hold all their money in cash form have been directly hit. Even those who do have access to accounts among them struggle with ill prepared banks and post offices, small and dispersed in number, and the need to take off several crucial hours from work – sometimes in vain. It is also difficult to estimate the numbers of women across the board who will be potentially irrecoverably impacted by this policy – women who do not inform their families of hidden stashes of cash, who are otherwise fully dependent on male members of the family and who stand to lose years of savings because they cannot confess to their presence.

Refugees who lack the requisite documents to create accounts are also now seeing months of savings potentially vanish, as they still lack mechanisms to access the banking sector.
so these are the major troubles section of people are facing.

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by arpitasharma on Sat Nov 26, 2016 8:52 pm

What is Demonetization?
It means Withdrawal of a particular form of currency from circulation,for exampel( coins,notes and gold) etc or we may say it is a process of removing currency from usage.

In our country Mr.Modi ji has announced on 8th Nov that note of rupee 500 and 1000 will not be used legally after 12:00am.This decision shocked the whole nation but behind all his intention was to remove MONEY LAUNDERING,CORRUPTION and BLACK MONEY etc.
This effects a lot pf people in whole country as people living in villages don't have Bank account they only have cash,not only this after standing in a line people can't exchange their money.
This decision taken by P.M is for all,he is not doing anything for him but for the betterment of the country,but opposing parties as well many people are taking this decision in a negative way,so for them he said in his speech which was held in Goa that "This important step towards eradicating corruption and black money but some people are lost in their own world"

Troubles due to Demonetization are:
1.The main problem is faced by Rural people as they are not having bank account and other thing is that people who are living far from cities they have to travel a lot for exchange so by this their labour hours decreases.
2.Foreign tourist are facing a lot problem.
3.ATM's not having new notes of 500 and 2000.
4.People who are admitted in hospitals facing problem of shortage.
5.People are restrict to their expenses.
6.This season is of marriages so both girl's and boy's family get effected by not having new currency.
7.Small time real builders.
8.Real Sector is effected a lot as shares of different companies goes down (DLF share goes down by 12 to 15 percent).

Impact of demonetization are:
1.The major impact would be on people having black money in form of cash.
2.There will be more flow of money,so more liquidity it shows pooling system which decreases the rate of interest on loan.
3.Fiscal deficit will reduce.
4.There will be proper circulation of money.
5.FDI(Foreign direct investment) will increases.
6.More employment,More development of nation and of poor people.
7.Reduce the money flow to terrorism.
8.It will bring transparency in the nation.

This decision has become HISTORICAL MOVE not only for India but for the world..

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by AYUSHI MISHRA on Sat Nov 26, 2016 9:02 pm

Demonetization is the act of  devastate a currency unit of its status as legal tender.
I will write in favor of the will , and yes good intentions always matter. Because the cause might be good but the way the idea is implemented makes all the difference. Same is the case of demonetization. The demonetization of Rs.1000 and Rs. 500 bank notes was a step taken  by government of India on 8th November 2016, ceasing the usage of Rs.1000 and Rs.500 notes as a form of legal tender in India from 9 November 2016. As a Prime Minister Mr. Narendra Modi took a very crucial step to change the higher value currency notes and i appreciate this. As we see that the corruption, black money, terrorism, illegal activities and duplicate currencies are increasing continuously, people are storing cash in their places, to save themselves from tax liabilities, that’s why government took this step to change the higher denomination currency of Rs.500 and Rs.1000 so that people come out with their money and government knows the storage of cash of an individual (if they do not want to show then the Rs.500 and Rs.1000 notes are treated as a piece of paper i.e., their face value will be treated as “Zero”).

ICICI Bank Chief Executive Officer Chanda Kochhar said, “It is perhaps the most significant move ever taken to curtail the parallel economy.”
The move will push people toward cashless & digitalized transactions.

“It’s a hugely positive development,” said Snapdeal CEO Kunal Bahl. “A much larger proportion of India’s GDP will now flow through digital pipes. It will boost the digital economy and instruments like e-wallets.”
Kishore Biyani of Future Group said its stores would remain open so people use up their Rs 500 and Rs 1,000 notes.
“For the benefit of consumer we are asking our stores to be open till 11.50 pm to help people buy their daily needs,” he said.



Finance Minister Arun Jaitley said ," the government's demonetization move is going to have a positive impact on the economy, including GDP".
Jaitley said there will be a positive impact "because a lot of money that operates in the shadowy economy will now become part of the banking structure" and banks "will have a lot more money to support the economy

TROUBLES  DUE TO DEMONATIZATION :-

1.) People who lives in rural area they are still facing problem because they are not having any bank account as NARENDRA MODI has told them earlier to get open the bank account but till now many are there who are not having bank account.
2) Normal person is not able to purchase its daily routine home items, and there most of the time is spending in standing in queues in the bank.

3 ) This step which is taken by NARENDRA MODI is good but all the bank should have been prepared more well so that the common people would not be facing such kind of problem which they are facing now by standing long hour in a queue for cash.

4.) Foreign Tourist is also facing lots of problem due to this demonetization.

5) The middle class person is mostly under pressure because whatever cash he is having is his pure white money, but due to this demonetization and the tax rates which is to be applied in that his money will be treated as black money if he has more than 2.5 lacs of 500-1000 notes with him.



6) All the business like jewellery , clothing and garments, cosmetics ,travel agencies ,hotels etc .  are bearing huge loses because of this demonetization because people doesn’t have money to go anywhere or to purchase any thing.

POSITIVE IMPACTS :-
1) FAKE CURRENCY & TERRORISM: As fake currency is no more a legal tender, it is expected to largely impact the financing of anti-national activities.


2) CASHLESS ECONOMY: The cashless economy may grow at a rate of more than 100 percent after demonetization. This may soon turn out to be a habit- forming event for the country.

3) ELECTION: It is believed that political parties spend 8-15 times more than the officially allowed amount during elections. One should not look at demonetization in a vacuum as it will bring out better policing, tax reforms, access to formal banking, transparency and progressive monetary laws and actions.

4) REAL ESTATE: The industry is already suffering due to unsold inventories and now due to shortage of liquidity the market value of real estate is going to decrease. Another impact would be that now people would not save the tax from real estate.

5) GST: The cash economy may multiply again within 6-9 months as Indians are more into cash transactions the cash transaction would reduce and more formal bank channels transaction would begin. The rotation of money and increased tax compliance would happen due to GST implementation.

7) GDP: It will be impacted as consumption will fall -Indirect tax collection may be lower.

CONCLUSION

Demonetization is an important step in the fight against the finance of terrorism. However, it should neither be the first nor the last, if the interlinked threats of corruption, crime and the finance of terrorism have to be controlled. These must also not be addressed simply within departmental and ministerial silos. Instead, an all-of government approach is imperative if each of these challenges is to be met.
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Re: "Do good intentions matter if they lead to bad outcomes."

Post by prachi gupta on Sat Nov 26, 2016 9:03 pm

In relation to present demonetization,it is a step taken with good intentions for curbing the black money and limit the level of corruption.It was a very necessary step seeing the present condition of the country.Although people are facing many problems due to this but it is sure it would result fruitful and all efforts would not go in vain.And these problems are nothing as compared to big ones that are not supposed to be faced.With this big step government will now be able to invest more in education,health sector ,beneficiary schemes and many more.Also government has tried it's best in providing the facilities to handle this step in am smooth manner.
So it is a step taken with good intentions thought causing some bad outcomes but it is sure it will help to boost the economy in long run.

TROUBLES

-Majority of rural population is not familiar with digital payments and other e-services so they should be educated first before taking such big step.
-In a country like india, where 60-80% transactions are held in cash it is obvious that it would cause problems to people in a major manner.
-lack of availability of ATMs and banks in rural areas which cause them to travel long to exchange currency.
-People not having bank accounts are facing severe problems as they were unaware of such big step and are now facing problems handling cash.
-Tourists coming india have faced many problems as they generally care cash of higher denominations.
-People standing in long queues due to large crowd available.

IMPACT OF DEMONETIZATION
This step of government has totally disrupted almost all sectors especially those dealing largely in cash like food,transport,real estate,etc.

E-COMMERCE:-
It is now forced to stop "cash-on-delivery" sales which constitute a major portion of their total sales as a result of which people ave cancelled their orders and not willing to buy.Especially rural people who are not comfortable with digital payments.
so it would hit largely for few months atleast.

REAL ESTATE:-
It is the sector affected largely by demonetization as most of the transactions are held in cash and not bank payment are generally involved.Due to this prices would fall considerably majorly of luxury flats and properties expecting to be come down to 20-30%.

ONLINE TRANSACTIONS:-
With non-availability of cash people will now be forced to use plastic money or digital payments for various purposes so it would bring cashless economy and also it will bring happy days for e-wallets like paytm,mobikwik,oxigen etc.

TERRORISM:-
Fake currency in crores is available in the market and is being used by terrorist groups and responsible for activities in jammu and kashmir and other areas so demonetization will completely change the game and help in controlling such activities.

INCREASE IN VALUE OF MONEY:-
As black money will be out of the market,so it will reduce the prices that will automatically increase the value of money in comparison to other currencies and will reduce inflation.

GDP:-
GDP of current and next few quarters is expecting to show negative growth.As there will be reduction in production ,so exports would decrease and imports will increase resulting in falling GDP.

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by devendra sharma on Sat Nov 26, 2016 9:14 pm

Many corporate leaders and employees have the right intentions, but it can be overwhelming when you consider how everything is affected from leadership styles, to organizational structure, to employee engagement, to customer service and marketplace.
Demonetization means complete ban on the currency notes it maybe all the notes or maybe some notes.
It was on 8th of November 2016, when Mr. Narendra Modi the Prime Minister of India declared on the National television that 500rs and 1000rs will no longer be treated as the legal tender.
Demonetization created trouble for the  Most of the people residing in the rural area people because as there are less number of banks and the avability of the new currency is less. Workers on daily basis affected by this because they don’t  get enough time for change their currency. They are  not able to manage their day to day life .

Impact of this decision :
Positive impact :
1. Black money will be out from the economy
2. Fake currency will be vanished
3. Circulation money in the economy
4. Corruption will be reduce
5. Step toward Digitalization.
6. Increase the use of plastic money

Negative impact :
1. Share market got affected
2. Hardship for marginal/middle income workers
3. Shortage of cash in the market as well as in the bank
4. Political parties haven’t a enough fund for there election campaign
5. Temporary chaos and confusions

It is the move with good intensions but in the short it makes a lots of troubles in the short run but it will be fruitful in the long run. Everyone will get benefitted in the  long run. bounce cyclops Smile Smile Smile Smile

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by indira kushwaha on Sat Nov 26, 2016 10:01 pm

I personally appreciate our Prime minister Mr. Narendra Modi for the big step taken by him for the betterment of the society. I believe that it is some way a good step taken to demonetize the currency note Rs. 1000 and remonetize Rs. 500 currency note of indian economy. demonetization means stripping a currency from the economy.
the step taken by Modi was to reduce corruption and reduce inequalities between the peoples but it was some how right but fail to many extent. to reduce corruption it is truly needed for the nation like india. through this step the black money is removed somehow but still completely removed we cant say ,as people have found many steps to convert their black money in the white form. as on 9th november around 8 pm our leader mr. Narendra modi announced live on news channels that the rs. 1000 and rs. 500 are from now onwards will not be used anywhere  than and their the problem created and people rushed to convert thier money at some time for that period the market was stop working.
It created a very big problem for everyone in the society specially the middle classs , rural people and the senior citizen:
rural people who do not have thier bank aacount got effected.
senior citizen who cant stand in the line for exchange of currency for long hours faced a lot of problems as they are the senior ones still they were in the need to stand in que to deposit their currency and make them exchange.
the middle class people who have functions at their homes specially the ones who have marrige at their homes faced a lot many problems, the gold rate goes up which effected them , the shopping part as per day only 4000 cash we can get from the ATM. and online tranction have a certain amount of limit which can be crossed very easily during marriges.
their were many problems created for the middle class people. the upeer ones did'nt effected too much the effect was on vendor , maid of homes , farmers and the middle ones.
IMPACT ON THE ECONOMY :-
1. Digtalization : now india say ab atm ni paytm karo. the online and the cards were being used . plastic currency had a boom. india is now becoming digital one.
2. gold market : gold market has seen a tremendos inflation in it but soon after its sell decreases as there was no money in the market so no one was able to purchase any gold items.
3.black money : upto some extent the black money has abolished.
4 growth rate : as the old currencies are being deposited in bank it has witness the growth rate increased.
5.tax collection : people are deposting their cash in banks the black one to convert them in white so the tax is being collected from them which has increased the tax collection by the government.
6. as saving rate is high in india the black money which is being converted into white while deposting in the bank and this money will be circulated in the economy and people will save the money than again the save money will be circulated in the economy which has increased the circulation through which investment multiplier will increase from it output will be generated and there will be more employment opportunity.
these are some of the impact on the economy.
conclusion : this has effected the common people like us but no much harm to the politician.
no doubt the intention of or PM is good but things are not that easy to implement , today the people are facing a lot of issue but as soon as time will pass and the things will settle down the things will come to their place normally, and the common people will be the one who will enjoy and will be benifit. all though the market is effected but after a while it all will be good and a new era will take place which is cash less economy which means digital india.

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There are some Points On which disagree Varshita Rathore

Post by Rishabh verma on Sat Nov 26, 2016 10:24 pm

Varshita Rathore wrote:
Good intentions always matter.

When talking about demonetization, the step taken by the government of India on November 8th 2016 to make 500 and 1000 banknotes illegal and ceasing the use of it, its outcome can be said troublesome or disruptive but its outcome is not negative. Our PM Mr. Narendra Modi has taken this initiative to fight against the problem of black money which is clutching our nation badly. It was announced by him in an unscheduled live television address that use of 500 and 1000 banknotes is invalid from midnight from the same day giving no time to black money holders to find any loophole in this order.  But when we have a glance at the present scenario the conditions of common mam is very bad. Businesses have gone under losses as the sales have gone down. People are not having sufficient cash which government has made acceptable. As a result people are standing in queues on a daily basis for multiple hours for getting their cash withdrawn or exchanged. The rural poor have been hit the most by this decision. Those rural people who doesn’t have a bank account are in the greatest dilemma that from where to solve this problem.

It’s true that no one can defend black money now. Heavy penalties are imposed and the government is trying to take every possible step not to spare even a single strand of opportunity to people possessing black money, which is again an appreciable job.

No doubt our PM has worked over this for the welfare of our nation, but along with it are also associated some problems/troubles regarding demonetization.

• ATMs are having shortage of banknotes.
• People are facing trouble in exchanging their currencies.
• Rural people not having bank accounts are clueless how to cope up from this situation.
• Shortage of 100 rupees banknote because of mismanagement of its printing.
• People have to wait daily in long queues for multiple hours to withdraw cash or make their old invalid banknotes exchanged.


IMPACT:
• The most serious impact is the liquidity which deflated due to the lack of money possessions with people. It is a short term effect. This liquidity crisis or credit crunch results in short supply in cash and demand is very high.

Impact on Black money: This is the main reason of the demonetization project and to a very good extends this project is able to live up to the expectations of the people introducing this.

People investing in Gold: Due to this initiative taken, people are taking undivided attention towards the purchase of gold as a remedy to their black money problem, which is also not 100% helpful in making black money white.

Lesser tax rates: It will tend to reduce the tax rates as the funds of the government now cannot be made black and people will now try to engage themselves in paying tax specially those who were avoiding this practice till now.

Economic growth: Demonetizing is not having a scope of small run. In long run it will definitely increase the growth rate and there will be a shift of black money to white.

Cash-less Economy: With creating a limit to withdraw Rs. 2500 per day and Rs. 24000 per week will shift the Indian economy towards online payments and PayTM, i.e. making the nation move one step towards development.

• It will lead to Transparency as most of the people will shift their interest to online payments.

Impact on Stock Market: With the effect of demonetization, i.e. almost no liquidity the purchases had gone down which cost the stock market with a loss of 1300 points as all of the investors are withdrawing their money back.

Rich and poor on the same pace: With the effect of this the rich and poor will share common grounds of the nation and basic amenities provided by the government.

Funding to terrorist and other unethical activities will stop: With the elimination of black money it will simultaneously tend to eliminate the funding terrorists and engagement in other unethical activities.

No Printing of fake currency: It will lead to breakage of the chain of fake currency supply from China.

Rise in the value of money: With the reduction in black money from the market it will definitely lead to increase in the value of Rupee in comparison of Dollar.

Check in the circulation in currency: With the effect of transparency there will be a constant check over the monetary usage in the country.

Hence, Demonetizing is an effective project undertaken for the elimination of black money. It may be inconvenient in short-run but will definitely yield good results in long-run.

FIRSTLY, YOU MENTIONED THAT THE BANK NOTES ARE BANNED. IT IS TOTALLY WRONG, IT IS NOT BANK NOTES ARE BANNED RATHER IT IS 1000 AND 500 NOTES WHICH ARE BANNED. BANK NOTES ARE RATHER DIFFERENT THINGS.

SECONDLY, ITS OUTCOMES ARE RESULTING INTO NEGATIVE THIGNS SUCH AS THE MONEY IS GETTING WEAKER AS COMPARED TO US DOLLAR

AT LAST, THERE ARE ALSO SOME WAYS SO THAT YOU CAN DEFEND YOUR BLACK MONEY. SO IT IS WRONG SAYING THAT "THERE IS NO WAY TO DEFEND BLACK MONEY". E.G. YOU CAN DEFEND YOUR BLACK MONEY BY PURCHASING GOLD.


Last edited by Rishabh verma on Sun Nov 27, 2016 12:12 am; edited 1 time in total
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Re: "Do good intentions matter if they lead to bad outcomes."

Post by Prateek Poddar on Sat Nov 26, 2016 10:29 pm

A good intention doesn’t matter if the outcome is bad.
People only remember the decision when the result led to be very positive or negative. If the long term result of demonetization tends to negative then no good intention will matter as this decision can form the India as well as it can also destroy India. And if we talk about the present situation of the country after demonetization is that the people of the country are facing problems because of converting the country from cash based economy to bank based economy which will lead to shortage of cash in hand as a result the purchasing power of a common man is decreased.
Impact of demonetization
1. Buying power reduces
2. Stock market crashed
3. Long queues of people in banks and ATM
4. Fake currency is demolished
5. No terror funding
6. No Political funding
7. Record of every transaction
8. Lesser tax rates
9. More savings in terms of bank deposits
10. Investments in terms of land and commodities.

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by Shreekant on Sat Nov 26, 2016 10:36 pm

in my opinion good intentions matters a lot but at the same time if it is leading to bad outcomes then it is something which is need to be changed.
troubles after demonetization:

The movement of currency has stopped after demonetization, which is slowing the economy down.” Workers in the steel, aluminium, construction and real estate sectors are not getting paid and as a result work in these sectors has stopped.
Poor people like farmers, daily workers, travellers, old people, people on medicine etc are the one who are suffering the most, as most of them either are not having a bank account or are finding hard to get work, or even are facing the difficulties in getting the change amount.
The real estate sector will definitely be affected by the demonetization exercise, as it has traditionally seen a very high involvement of black money and cash transactions. However, almost all such incidences have been in the secondary sales market, where cash components have traditionally been a veritable ‘must’. In other words, the resale properties segment will take a big hit.
so these are some areas in which demonetization has affected a lot.

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by Shreekant on Sat Nov 26, 2016 10:36 pm

in my opinion good intentions matters a lot but at the same time if it is leading to bad outcomes then it is something which is need to be changed.
troubles after demonetization:

The movement of currency has stopped after demonetization, which is slowing the economy down.” Workers in the steel, aluminium, construction and real estate sectors are not getting paid and as a result work in these sectors has stopped.
Poor people like farmers, daily workers, travellers, old people, people on medicine etc are the one who are suffering the most, as most of them either are not having a bank account or are finding hard to get work, or even are facing the difficulties in getting the change amount.
The real estate sector will definitely be affected by the demonetization exercise, as it has traditionally seen a very high involvement of black money and cash transactions. However, almost all such incidences have been in the secondary sales market, where cash components have traditionally been a veritable ‘must’. In other words, the resale properties segment will take a big hit.
so these are some areas in which demonetization has affected a lot.

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by Siddharth Jain on Sat Nov 26, 2016 10:37 pm

First of all what does Demonetization means...
Demonetization is the process in which a particular currency or valuable mineral is degraded as a legal tender. This happens when a certain currency is no longer in regular use within the country of origin, or when a newer currency comes into circulation.
As we know, the Rs 500 and Rs 1,000 notes have been cancelled as legal tender, to be replaced by other notes and designs.
The demonetization of ₹500 and ₹1000 banknotes was a policy enacted by the Government of India on 8 November 2016.
The announcement was made by the Prime Minister of India Narendra Modi in an unscheduled live televised.
The demonetization received support from several bankers as well as from some international commentators, although it was criticised by members of the opposition parties, some of whom organised protests against the move. In the days following the move, banks faced severe cash shortages. People seeking to exchange their notes had lengthy waits, and several deaths were linked to rush to exchange cash. The BSE SENSEX and NIFTY 50 stock indices crashed the day following Modi's announcement.
The decision met with mixed reactions Several bankers like Arundhati Bhattacharya (Chairperson of State Bank of India), Chanda Kochhar (MD & CEO of ICICI Bank) and Deepak Parekh (Chairman of HDFC) appreciated the move in the sense that it would help curb black money.


IMPACTS

Stock market
As a combined effect of demonetisation and US presidential election, the share market indices dropped to an around six-month low in the week following the announcement. The day after the demonetisation announcement, BSE SENSEX crashed nearly 1,689 points and NIFTY 50 plunged by over 541 points. By the end of the intraday trading section on 15 November 2016, the BSE SENSEX index was lower by 565 points and the NIFTY 50 index was below 8100 intraday.

Transportation
Major highway toll junctions on the Gujarat and Delhi-Mumbai highways also saw long queues as toll plaza operators refused the old banknotes. Nitin Gadkari, the Minister of Transport, subsequently announced a suspension of toll collections on all national highways across India until midnight of 11 November, later extended until 14 November and again until midnight of 18 November, and yet again till 2 December.

Agriculture

Transactions in the Indian agriculture sector are heavily dependent on cash and were adversely affected by the demonetisation of ₹500 and ₹1000 banknotes. Due to scarcity of the new banknotes, many farmers have unsufficient cash to purchase seeds, fertilisers and pesticides needed for the plantation of rabi crops usually sown around mid-November.[127] Farmers and their unions conducted protest rallies in Gujarat, Amritsar and Muzaffarnagar against the demonetisation as well as against restrictions imposed by the Reserve Bank of India on district cooperative central banks which were ordered not to accept or exchange the demonetised banknotes.

Banking

A State Bank of India branch remained open at night, and a long queue of people waited outside the ATM to withdraw money
In the first four days after the announcement of the step, about 3 trillion rupees in the form of old ₹500 and ₹1000 banknotes had been deposited in the banking system and about 500 billion rupees had been dispensed via withdrawals from bank accounts, ATMs as well as exchanges over the bank counters. Within these four days, the banking system has handled about 180 million transactions. The State Bank of India reported to have received more than ₹300 billion in bank deposit in first two days after demonetisation. A spike in the usage of debit card and credit card post demonetisation was also reported.

Business
By the second week after demonetisation of ₹500 and ₹1000 banknotes, cigarette sales across India witnessed a fall of 30–40%, while E-commerce companies saw up to a 30% decline in cash on delivery (COD) orders. Several e-commerce companies hailed the demonetisation decision as an impetus to an increase in digital payments. They believe that it would lead to a decline in COD returns which is expected to cut down their costs.

The demand for point of sales (POS) or card swipe machines has increased. E-payment options like PayTM and PayUMoney has also seen a rise.[143] According to data of Pine Labs, the demand for its POS machines doubled after the decision. Further it states that the debit card transactions rose by 108% and credit card transactions by 60% on 9 November 2016.

Income tax raids and cash seizures
The Finance Ministry instructed all revenue intelligence agencies to join the crackdown on forex traders, hawala operators and jewellers besides tracking movement of demonetised currency notes.

Income Tax departments raided various illegal tax-evasive businesses in Delhi, Mumbai, Chandigarh, Ludhiana and other cities that traded with demonetised currency. The Enforcement Directorate issued several FEMA notices to forex and gold traders. It also raided several forex establishments making back dated entries. Large sum of cash were seized in different parts of the country. In Chhattisgarh liquid cash worth of ₹4.4 million was seized.

Effect on illegal activities
The move also reportedly crippled Communist guerrilla groups (Naxalites) financing through money laundering. On 10 November the police arrested a petrol pump owner at Ranchi when he reportedly tried to deposit ₹2.5 billion, belonging to a person affiliated with the banned Communist Party of India. According to Chhattisgarh Police demonetisation has affected the Naxalite activities. It is reported that insurgents have stashed more than ₹70 billion in the Bastar region. Mumbai Police reported a setback to Hawala operations. Hawala dealers in Kerala were also affected. The Jammu and Kashmir Police reported the effect of demonetisation on hawala transactions of separatists. More than 300 Naxals have surrendered to the police voluntarily due to shortage of funds.

Evasion

Gold purchases
Donations
Multiple bank transactions
Railway Bookings
Municipal and legal taxes

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by SONU KUMAR on Sat Nov 26, 2016 11:07 pm

Yes of course good intention always matters whether it resulted positive or negative outcomes. But the condition is, intention should be real not pretended. Now coming to the question that it matters or not? Yes it matters, But matters to whom? This is completely depended on that person is concerned. In a family if any decision taken doesn’t work and the outcome is negative, there will be no issues in the relation among the members and the believes among each other always remain as it is.
But if talking about India it’s a very common thinking that public are deceived by politicians and ministers. And unfortunately it is true also. Due to this, believes of public in government and ministers have declined. So if any decision taken by the government, initially it is difficult for the people to have believe in that decision.
Anyway more important thing is that without any preparations, backups, compensations result cannot be fruitful or positive whether intention was good or not.
Now in current scenario government has taken a very bold step of demonetization of Rs. 1000 and Rs. 500 currency. The decision has taken overnight and the logic behind this move is being made to retrieve/capture the black money . According to the reports 85% currencies are of Rs. 1000 and Rs. 500. Due to this sudden step of demonetization, liquidity of currency has decreased by 85% in the whole economy. This decision has taken without ensuring the liquidity of legal currency, and this move has brought the whole country in trouble. As we all are witnessing these days that government is not well prepared to handle disarrangement, chaos, disorders. Around 85 people have died due to this disarrangements. Who are responsible for these deaths?
I am not going to talk about the intentions of the government and how much it will beneficial for the country. Because now all this things are happening on the cost of life of people.
Who are suffering from this decision and its disarrangements. Farmers are suffering, poor people who work on daily wages, families, small businesses and more important patients are suffering . Each and every poor common man is suffering badly.
So for the time being outcome is neither positive nor negative, it has taken and moved to a different path.

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Re: "Do good intentions matter if they lead to bad outcomes."

Post by shubham gupta on Sat Nov 26, 2016 11:19 pm

Demonetization is necessary whenever there is a change of national currency. The old unit of currency must be retired and replaced with a new currency unit.
 On November 8, Indian Prime Minister Narendra Modi announced in a broadcast to the nation that Rs500 and Rs1,000 currency notes would no longer be recognized legally as currency. 

Impact :-
●In the tribal heartland of the country, the poor people through middlemen are getting their currencies exchanged for Rs.300 or Rs.400 because of lack of proper information which is hitting them.
●Demonetization has affected the economy in both ways but in long run it will lead to increase in growth rate, as to some extent black money will be converted into white money.
●Poor people like farmers, daily workers, travellers, old people, people on medicine etc are the one who are suffering the most, as most of them either are not having a bank account or are finding hard to get work, or even are facing the difficulties in getting the change amount.
Troubles of Demonetisation are as follows:-
1. Foreign tourists facing problems due to lack of awareness.
2. Domestic tourists also faced problems.
3. Lack of money in the economy, restricting various transactions.
4. Rural area people still dosen't have any bank account so they are facing problems for daily transactions.

Conclusion :-
In the long run India will have a sustains Growth rate for along time and will be major world economic power to reduce poverty and increase standard of living.
Transparency- It will bring more transparency in the long run (cashless economy).

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SOME POINTS WHICH I WOULD LIKE TO INCLUDE IN THIS @ABHIK

Post by Rishabh verma on Sat Nov 26, 2016 11:25 pm

abhik wrote:The idea of demonetization is good but it has to be taken into consideration that most of the black money is kept in the form of land, buildings or gold or kept abroad. What is in cash constitutes only 4% of the total amount of black money on which taxes are not being paid. Out of this, a lot of money is in circulation in everyday transaction like if someone is building a house; the bill is not paid through banks for sand, bricks etc. This money goes into the other systems though it has been drawn from bank. These things will come under control with this step.
Small farmers, sellers, merchants, daily wage labourers and traders are suffering because of lack of proper planning, intelligence and foresight such as recalibration of ATM machines. There was need to pile up enough 100 Rupee notes and other smaller denomination notes in the market before taking this step.
Impact of this demonetisation in the economy would be as follows:-
1. Deposit in the short term may rise, but in the long term, its effect will come down.
2. India risks its position of being the fastest growing largest economy: reduced consumption, income, investment etc. may reduce India’s GDP growth as the liquidity impact itself may last three -four months.
3. The real impact will be on counterfeit/fake currency as its circulation will be checked after this exercise.
4. The major impact would be on the people having their black money in the form of cash.
5. A lot of money that operates in the shadowy economy will now become part of the banking structure and banks will have a lot more money to support the economy.

Undoubtedly, a massive step! Rather, a revolutionary step. But before hailing Modi ji, a few other aspects too should be closely analysed!
-When we say, phasing out of higher denomination notes will help in fighting against corruption and trend hash tags like #IndiaFightsCorruption, how can one be so sure that this will end corruption? I mean, yes the circulation of black money takes place in higher denomination notes, but what if now people use a 100 rupee note to bribe someone?
-A huge population still is still not included in the banking system, naturally they’ll panic. Where will they get their notes exchanged? Where will they get their notes deposited?
-Many people will happily buy gold!
I guess we should wait for a few months to see the positive impact of such a measure.
I AM FOR SURE THAT THIS STEP OF BANNING THE 1000 AND 500 RUPEES NOTES WILL  NOT END THE CORRUPTION. WHEN EACH AND EVERY PERSON WILL THINK THAT THEY SHOULD WORK HONESTLY THEN ONLY THE CORRUPTION WILL END FROM ROOT.




Last edited by Rishabh verma on Sun Nov 27, 2016 12:00 am; edited 1 time in total
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Re: "Do good intentions matter if they lead to bad outcomes."

Post by simran sharma on Sat Nov 26, 2016 11:56 pm

RS 500 AND RS 1,000 NOTES HAVE BEEN CANCELLED AS LEGAL TENDER, WHICH ARE GOING TO BE REPLACED BY NEW NOTES AND DESIGNS.
THE DEMONETIZATION OF ₹500 AND ₹1000 BANKNOTES WAS A POLICY ENACTED BY THE GOVERNMENT OF INDIA ON 8 NOVEMBER 2016
ITS IMAPACT ON VARIOUS SECTORS IN THE ECONOMY ARE DISCUSSED BLEOW:-

IMPACT OF AGRICULTURE- Due to BANNING OF THE NEW BANKNOTES, FARMERS WHO DO NOT HAVE CASH WITH THEM WILL FACE THE PROBLEM AS THEY HAVE TO PURCHASE THE SEEDS AND FERTILIZERS,

IMPACT ON BANKING SECTOR- DEPOSITS OF 53,000 CRORE RECEIVED IN BANK AFTER DEMONITISATION WHICH IS A HUGE AMOUNT. SURELY THE EMPLOYEES WHICH ARE WORING IN BANK ARE DOING A GREAT JOB BUT ON THE OTHER SIDE, MOST OF THE GENERAL PUBLIC HAS TO FACCE THE PROBLEM OF STANDING IN THE LINE.

POLITICAL IMPACT- FROM MY POINT OF VIEW, BJP WHO IS THE RULING PARTY, HAS TAKEN THIS DECISION TO  PUSH DOWN THE FUNDING OF SAPA WHICH IS THE RULING PARTY OF UTTAR PRADESH AND SOON THERE ARE ELECTIONS WHICH ARE GOING TO BE HELD. SO THE BLACK MONEY COULD NOT BE USED BY THE SAPA PARTY TO PURCHASE THE VOTES AND THUS THEY WILL LOSE THE ELECTIONS.

IMPACT ON BUSINESS- KISHORE BIYANI, THE CEO OF FUTURE GROUP SAID THAT THERE IS A RISE IN THE CARD TRANSACTIONS FROM 32% TO 87% WHICH HAS LEAD TO THE WHOLE SALE TRADE WHICH SUPPLIES THE GOODS TO  KIRANAS  AT RURAL AREAS, HAD GONE DOWN. SO PEOPLE IN RURAL AREAS ARE FACING THIS PROBLEM OF UNAVAILABILITY OF THE NECESSARY GOODS.


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Re: "Do good intentions matter if they lead to bad outcomes."

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