On the night of november 8 this year, Prime minister narendra modi appeared on national television to declare his Government’s decision to demonetise Rs 500 and Rs 1,000 currency notes, with a window of 50 days for a smooth transition. no doubt the move has hit those who have accumulated unaccounted black money. the Bureaucracy Today magazine analyses whether the move will stop the hoarding of black money in time to come.
The Modi Government’s sudden decision to demonetise Rs 500 and Rs 1,000 banknotes came at a time when an unaccounted cash flow, fake currency in the Indian system and dodgy funds had been stagnating the most promising economy of the world, say experts. at any given time, as per the findings of the Indian statistical institute, Kolkata, in 2015, as many as 250 out of every 10 lakh notes in circulation were fake. Likewise, banknotes with a face value of Rs 400 crore are said to be in circulation in India. the study observed that fake notes with a face value of Rs 70 crore were infused into the system every year, and law enforcement agencies were able to intercept only a third of this amount. the study also pointed out that Rs 1,000 notes constituted about 50 per cent of the total value of counterfeit notes.
In fiscal 2014-15, counterfeit notes in circulation rose 22% to 5,94,446 pieces, according to the Reserve Bank of India’s annual report. these counterfeit notes were detected in the banking system. While 95.6% of these notes were detected by commercial banks, 4.4% of them were detected at RBI offices. the number of counterfeit notes detected increased for all denominations, except for Rs 2 and Rs 5, which are almost out of circulation, being replaced by metal coins. notes of denominations of Rs 500 and Rs 1,000 together accounted for approximately 85% of the total value of banknotes in circulation as at the end of march 2015. notes of Rs 10 and Rs 100 together accounted for 54% of the volume as at the end of march 2015.
During 2014-15, around 1,510 crore pieces of soiled banknotes were disposed of as against a target of about 1,710 crore pieces and 1,420 crore pieces were disposed of during 2013-14.
However, this fiscal year would be different as the Modi Government’s has initiated a mechanism to eliminate fake currency from the Indian system.
This story is from the November 16-30, 2016 edition of Bureaucracy Today.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the November 16-30, 2016 edition of Bureaucracy Today.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Bridge Between Hunger & Food Security
It is a matter of pride for all of us that India has become the fifth largest exporter of agricultural commodities. But it is home to 1,946 lakh crore undernourished people too, the highest in the world, according to the annual report by the Food and Agriculture Organization of the United Nations. This translates into over 15 per cent of India’s population, exceeding China in both absolute numbers and proportion of malnourished people in the country’s population. India’s gross domestic product grew 7.6 per cent in 2015-16 but this higher economic growth has not been fully translated into higher food consumption.
Where Indians are Investing Today?
Traditionally, there has been a high affinity for having physical assets such as precious metals, jewellery and real estate among Indians which started changing quite rapidly over the last decade. The reasons are varied. One important factor playing a role here has been the increased penetration of financial instruments tapping people living even in remote villages. The result is: the“only store of value”feature offered by physical assets is fast disappearing.
Has Bureaucracy Failed Narendra Modi?
The ambitious Swachh Bharat Abhiyaan, which was officially launched on October 2, 2014 amid much fanfare with Prime Minister Narendra Modi himself cleaning the road with a broom at Rajghat in New Delhi, was seen as a harbinger of change which would influence the behaviour of millions of Indians who are notoriously known for dumping their wastes in public places. For months, bureaucrats wielding the broom also continued to dominate the media space. However, over two years since the campaign was launched, the cleanliness zeal, it seems, has taken a backseat. A reality check done by Bureaucracy Today in Shastri Bhawan in Lutyens’ Delhi which houses major Central Ministries indicates that those in the corridors of power are not readying themselves to become part of a new, clean and swanky India.
CRWC Plans to Diversify From Its Traditional Warehousing
Giving a boost to railside warehousing operations in India, the Central Railside Warehouse Company Ltd, a subsidiary of the Central Warehousing Corporation, is planning to set up 10 warehouses at railheads to store commodities besides upgrading its existing 19 warehousing complexes in India for Rs 200 crore. In a conversation with Bureaucracy Today, KU Thankachen, Managing Director of the CRWC, talks about its expansion plans.
‘Gems and Jewellery Industry Lacks Proper Training Network in India'
The Government and the Ministry of Skill Development and Entrepreneurship have taken several skill development measures such as the Pradhan Mantri Kaushal Vikas Yojna (PMKVY) and created a benchmark at the national level for skilling in India. However, artisans in the gems and jewellery industry who contribute majorly to the jewellery creation process lack certifications and are struggling to make their both ends meet. In a conversation with Bureaucracy Today, Binit Bhatt, Chief Operating Officer of the Gem and Jewellery Skill Council of India, talks about skills in this industry.
Breathing A New Life Into The Indian Healthcare System
On the occasion of World Health Day on April 7, Prime Minister Narendra Modi had said that his Government is leaving no stone unturned in providing quality healthcare that is accessible and affordable. Making an effort in this direction, the Health Ministry under the administrative acumen of the Health Secretary, CK Mishra, is working on a war footing to galvanise the sluggish healthcare system of India to deliver affordable health and well-being to the last man in the row. However, the real challenge in the path for Universal Health Coverage lies in effective implementation which calls for cementing consensus between State Governments and the Centre. In a candid conversation with Bureaucracy Today, Union Health Secretary Mishra speaks about the increasing coordination between the Centre and the States in the recent times and also sheds light on other issues like making generic medicines available to people and the regulation of the private healthcare sector which are of top priority for his Ministry.
Central Bank Drags BoM In Court
As all nationalized banks are working under the control of the Reserve Bank of India they are expected to follow the rules and regulations codified by the same regulatory authority. But if some unforeseen incident happens and if there is no co-ordination or co-operation between the banks, they are susceptible to legal confrontation. This has happened in the case of a stolen cheque which was deposited in one bank and was cashed by the person who stole it by producing it in another bank.
Can Domestic Manufacturers Capture a Larger Pie of Indian Solar Market?
Solar installations in India reached 4 GW in 2016, and are expected to surpass 9 GW in 2017, an incredible pace of growth considering our country installed just 883 MW in 2014. With exponential growth in the sector, the Government wants to ramp up domestic manufacturing to decrease the volume of solar module imports which, along with installations, has also increased dramatically. The challenge, like in most markets, has been that of cost competition from Chinese manufacturers. India lost its case at the World Trade organization (WTO) last year which ruled that its Domestic Content requirements (DCR) discriminated against US manufacturers. With this backdrop, Indian policy makers are now looking at various options to support domestic manufacturers without violating global trade agreements.
Accelerating Sustainable Development Towards 2030
Taken together, the 17 Sustainable Development Goals (SDGs) – contained in UN Resolution 70/1 involving the 194 member States and civil society in its deliberation – seek an encouraging level of development of humanity’s social and environmental existence. They establish a framework through the year 2030 that can assist the nations and communities of the world in plotting what could amount to transformative, prosperous, and sustainable achievements. How can this potential development unfold and be long-lasting? What approaches should we catalyse so that sustainable projects result in and generate the human development benefits the world’s local publics want and need?
The Reshaping Of Urban India
India is moving away from villages and is set to soon become more urban. To meet this demographic transition, experts say that we need to build 22 new Bengalurus besides recasting the landscape of the present 4,041 cities for a better living. The past is not encouraging. But can we make the future perfect?
