Demonetisation: What PM Modi needs to answer

1. How many numbers of notes are going to lose their value on the midnight of 8th November?

Ans: 2,300 crore currency notes (this is number of notes, not the value of the notes)

 

 

2. What is the capacity of the Government and RBI note printing press?

Ans: 300 crore notes per month.

 

 

3. How many days does it take to print new notes of the same value that had been demonetised?

Ans: Minimum 7 months. If ₹100 notes are printed instead of ₹ 500 then the duration extends by 5 times more.

 

 

4. What is the PM’s rationale behind releasing ₹ 2000 notes?

Ans: High value currencies accelerate the extent of corruption at the same ratio. That was the reason why high value currencies were demonetised. But in that place government has released ₹ 2000 notes for which no explanation is given so far. How is it stopping this vicious circle?

 

 

5. Is it possible to disburse new currency notes instantly through ATMs?

Ans: It is not possible unless all the ATMs across the country are redesigned and recalibrated as per the size of new currency notes. It will take least 2 months time to redesign all the 2.5 lakh ATM machines.

 

 

6. How to disburse new currency notes instantly?

Ans: That is impossible due to limited bank networks and shortage of bank employees.

 

 

7. Then how many days does this crisis of currency notes perpetuate?

Ans: The nation is going to face a severe shortage of currency notes and it is not going to be solved in a short duration due to a shortcoming of the banking networks.

 

 

8. What is the current status of bank networks in the country?

Ans: Out of 1,38,626 branches two thirds are located in metro cities, urban and sub-urban places and only one-third (47,443) is located in rural areas. Many villagers have to travel kilometres before they reach the nearest branch.

 

 

9. What is the current status of ATM networks in the country?

Ans: Out of 2,15,000 ATMs, 55,690 ATMs are located in 7 metro cities. 90 per cent of ATMs are located in just 16 states and 10 per cent of ATMs (21,810) are spread across remaining 13 states and 7 Union Territories. North east states have just 5,199 ATMs out of which 3,645 ATMs are limited to Assam state alone.

 

 

10. What are the adverse effects of demonetisation on the financial situation of the country?

Ans: The adverse effects are severe. GDP growth decreased at 1 per cent which means there has been a ₹ 1.5 crore decrease in the GDP growth.

 

 

11. What is the analysis of ‘The Centre for Monitoring Indian Economy’?

Ans: In 50 days i.e., between 8th November and 30th December the country will facing a loss of ₹ 1,28,000 crores.

 

12. How demonetisation has affected the common man?

Ans: Common people across the nation lose ₹ 15,000 crores just by standing in the queue.

 

 

13. What is the printing cost of new currency?

Ans: ₹ 16,800 crores

 

 

14. How much loss do the traders and entrepreneurs bear?

Ans: ₹ 61,500 crores

 

 

15. What is the additional expenditure on incentives to bank employees?

Ans: ₹ 35,100 crores.

 

 

16. What is the amount of money the banks get through the deposit of banned currency?

Ans: Total amount the banks get through the deposit of banned currency is ₹15.04 lakh crores. Even if it gets back 90 per cent of the banned currencies it amounts ₹ 1,40,000 crores. But if compared to the loss of JDG this amount is not going to fulfil the loss.

 

 

 

17. In case if the economy gets 90% back again from the common man, then what is the achievement of note ban?

Ans: An absolutely nominal amount. This once again proves the phrase “making a mountain out of a mole hill”.