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How demonetisation affected the Indian economy? Research Team | Posted On Thursday, November 24,2016, 10:15 AM

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How demonetisation affected the Indian economy?



After the Government scrapped 500 and 1,000 rupee notes, there have been long queues at banks and ATM’s. Who suffers….Small businesses who take payments from customers, mainly in cash. You can’t pay your local fisherman through your mobile wallet. If you are used to paying for your groceries and household items in cash, you could face some difficulty. Some people grumble…First work, then stand at queues at banks and ATM’s….

Today….Thankfully, queues at banks have shortened, but the queues outside ATM’s are still quite long. 

500 and 1000 rupee notes, make up 86% of currency by value in the country. The 500 and 1000 rupee notes are worth more than 14 lakh crores.  If 86% of currency by value is removed, there is bound to be some short term pain. ATM’s have to be recalibrated to issue the new 500 and 2000 rupee notes. Yes…this operation was highly secret and no matter how well planned, there were bound to be some shortcomings…The Government says….short term pain for long term gain….Worried about short term pain?….Think about these benefits….

Cut to April 1st 2017….This is how you could gain from demonetization….. Want to know more on tax planning and loans. Just leave a missed call on financial education helpline 02261816111 or just post a request on website. offers Free, Unbiased and on-call financial advice on Insurance, Mutual Funds, Real Estate, Loans, Bank Accounts and capital markets.

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Your loan EMI’s could come down by April 1st 2017

Citizens are depositing and exchanging old 500 and 1000 rupee notes, at the bank. Around INR 5.45 lakh crores, have been deposited by banks in the last 8 days. Banks are flush with cash and have lots of money to lend.

The Prime Minister has said…This money will not sleep in banks. Banks have cut interest rates offered to customers on FD’s. This is the first step for reducing lending rates on loans.

Expect your home loan EMI’s and car loan EMI’s to fall really low by April 1st 2017. This is gain…gain…gain…

Government has lots of money to spend on developmental activities giving you a better quality of life by April 1st 2017

RBI had printed about 15 lakh crore worth of 500 and 1,000 rupee notes. (The Government knows the exact amount). About INR 10 lakh crores worth of 500 and 1000 rupee notes, will come back to the economy, through deposits by citizens at banks and other means. The remaining 5 lakh crores is unaccounted money, held by corrupt politicians and tax evaders. This money cannot be brought to banks and will be destroyed. This 5 lakh crores is the profit of the RBI. (Rupee notes are the liability of the RBI). RBI will print new 500 and 2000 rupee notes, worth this amount and transfer it to the government.

The government will use this money for developmental activities, boosting infrastructure which will benefit cement and steel industry and also lots of schemes for the poor. You could get a better salary as the economy improves.

Your mutual fund investments could give a lot of returns by April 1st 2017

Nearly INR 1.5 Lakh crores will flow into mutual funds in the medium term. This money will come from ordinary investors and HNI’s (High-Net-worth Individuals).

You and other investors in mutual funds, will get inflation beating returns from your investment. Investors would shift their money from traditional investments like gold, real estate and fixed deposits, to mutual funds. With lots of money flowing into mutual funds…Expect the value of your mutual fund investments to rise.

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You could buy your dream home by April 1st 2017

If you are looking for an affordable home, your long wait could finally be over. Property markets in many cities, could see a correction of around 30%. Lots of black money gets pumped into real estate.  With the scrapping of 500 and 1000 rupee notes, land prices would fall as it becomes very difficult, to hide black money in land and property.

If you want to purchase land/property, at least 30% of the payment needs to be made in cash. With the Government cracking down on black money, land prices could correct by 30%. Your dream home is waiting….

SEE ALSO: E-Aadhaar Card - Download, Print Online and Benefits

Go cashless and see your life change by April 1st 2017

More than 90% of transactions in India, are made using cash. The Government started a massive financial inclusion program, to persuade citizens to go cashless. Unfortunately, our citizens still love cash and coins. Digital wallets have risen to the challenge, of making India cashless. You can pay your auto and taxi fare, using digital wallets. Your local tea shop, KIrana stores, even your Paan shop…all payments can be made using digital wallets. Even a roadside stall has the facility to pay by digital wallet.

Then there is the unified payments interface, popularly known as UPI. You can easily transfer money between friends and family, up to INR 1 lakh in seconds...

Your Big Day is just 4 months and a week away. April 1st 2017 is fast arriving. The clock ticks…..Your dream home awaits you…Better still, It’s not going to cost too much. Going cashless, is going to change the way you live. No more lose change jangling in your pocket…. No cash for thieves to steaL….No more fighting at shops for change….Best of all, your loan EMI’s will go down. All your hard earned money is saved.

Be Wise, Get Rich.

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