The Big Reverse

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by Meera Sanyal


  46.‘Macroeconomic Impact of Demonetization’, RBI Report dated 10 March 2017.

  47.One basis point is equal to 1/100th of 1 per cent, or 0.01 per cent, or 0.0001, and is used to denote the percentage change in a financial instrument.

  48.‘Still scope of rate cut pass-through for borrowers: Das’, Deccan Chronicle dated 5 May 2017, https://www.deccanchronicle.com/business/economy/050517/still-scope-of-rate-cut-pass-through-for-borrowers-das.html

  49.‘Demonetisation helped bring down realty prices by 5-10%: Housing ministry’, The Times of India dated 9 November 2017, https://timesofindia.indiatimes.com/business/india-business/demonetisation-helped-bring-down-realty-prices-by-5-10-housing-ministry/articleshow/61569838.cms

  50.In a written reply, tabled in the Rajya Sabha on 21 December 2017 by Union minister Hardeep Singh Puri.

  51.Commenting on the 1978 demonetization, in his book, Glimpses of Indian Economic Policy: An Insider’s View (Oxford University Press, 2002).

  Conclusion

  1.During demonetization, I was interviewed frequently on print and TV media for my views. The quote above was published in an interview with the Free Press Journal.

  2.The concept of Minimum Government Maximum Governance was first enunciated by Mahatma Gandhi while explaining his ideology of Swaraj. In the run up to the 2014 Lok Sabha elections, PM candidate Modi promised the nation ‘Minimum Government Maximum Governance’, if elected.

  Index

  A PortLands Initiative (APLI) Mumbai

  Aam Aadmi Party (AAP)

  ABN AMRO

  ACES

  Adhia, Hasmukh

  Adopengő, Hungarian currency

  Aduan, Wanda Engel

  Agarwal, Rajesh

  agricultural labour

  Agricultural Produce Market Committees (APMCs)

  Ahmed, Akhlaq

  Ahmed, Faizal

  Ahmed, Taj

  AIESEC

  Alam, Taj

  Alibaba.com

  Alipay Singapore E Commerce Pvt. Ltd.

  All-India Federation of Tax Practitioners

  All India Manufacturers Organization (AIMO)

  Artificial Intelligence

  Arun Kumar

  Asian Development Bank (ADB) Conference in Yokohama

  Asian financial crisis

  Assignat

  Association of Planters in Kerala

  ATMs, recalibration

  Augustus, Roman Emperor

  Australia: demonetization

  automation

  Axis Bank

  Ayittey, George

  Babri Masjid riots

  bad loans and non-performing assets (NPAs). See non-performing assets (NPAs)

  Balakrishnan, Pulapre

  Banco Nacional Ultramarino

  Banerjee, Mamata

  Bangladesh war

  bank

  increase in deposits

  staff across the country; fall from grace

  Bank of America

  Bank of Bengal (Bank of Calcutta)

  Bank of Bombay

  Bank of England

  Bank of Madras

  Basu, Kaushik

  Battuta, Ibn

  Bendkule, Yashwant and Hirabai

  Bhagwati, Jagdish

  Bharatiya Janata Party (BJP)

  Bhiwandi Textile Mills Association

  Bhuyan, Achyut

  Bilpengő, Milliard

  black economy

  black income

  black market

  black money and corruption

  experience of other countries which demonetized to curb corruption

  Blair, Cherie

  brassware manufacturers and exporters, impact of demonetization

  Buhari, Major General Muhammadu

  Bunich, Pavel S.

  Burma/Myanmar

  Burmese way to Socialism

  demonetizations, 1964, 1985, and 1987

  Demonetization Act

  capital adequacy norms

  capital formation

  capitation fee

  Cash in Circulation

  cashless economy

  cash-to-GDP ratio

  Central Bank of Nigeria

  Central Banking System (CBS) 45

  Central Board of Direct Taxes (CBDT)

  Central Bureau of Investigation (CBI)

  Central Pay Commission, 7th

  Centre for Monitoring Indian Economy (CMIE)

  Chakrabarty, K.C.

  Chakravarty, Praveen

  Chandrachud, D.Y.

  Chandrasekaran, Natarajan

  Chao

  chaos caused by demonetization

  Chaudhary, C.R.

  Chernomyrdin, Viktor S.

  China: demonetization during the Tang dynasty (618–907 CE)

  Chowdhary, Jitender

  Clinton, Hillary

  Coal Scam

  Cold War

  Committee on Unorganized Sector Statistics

  Committee to Protect Journalists (CPJ)

  Common Cause

  computerization

  Congress

  Constantine, the first Christian Roman emperor

  constructive politics

  Consumer Pyramids Household Surveys (CPHS)

  corruption. See black money and corruption

  cost of printing new notes

  counterfeit notes, counterfeiting

  in Australia

  in China

  in France

  in Soviet Union and Russia

  credit growth

  credit rating agencies

  currency chests

  Currency in Circulation (CIC)

  Currency Note Press, Nashik

  current and savings accounts (CASA)

  Dabhol Enron power project

  daily wage workers, impact of demonetization

  dairy and milk producers, impact of demonetization

  Darukhana, Mumbai

  Das, Shaktikanta

  Datta, Devangshu

  deaths of people due to standing in queues

  Debroy, Bibek

  demographic dividend

  demonetization

  costs

  in countries across the world

  eight big goals

  financial and human costs

  logistic challenges

  motives behind

  potential consequences

  pre-2005 high denomination notes

  previous experiments

  1946

  technical demonetization between 1946 and 1978

  of coins

  1978

  report card

  successful

  when did planning start for

  who were the planners

  Demonetization Dividend

  Department of Economic Affairs (DEA)

  Desai, Morarji

  Deshmukh, Chintaman Dwarakanath

  digital and cashless India, digitization

  digital payment networks

  Diocletian, Roman Emperor

  Direct Taxes Enquiry Committee

  dissenting notes

  distress and inconvenience, queues

  district central cooperative banks (DCCBs)

  liquidity crisis

  domestic saving, impact of demonetization

  domestic savings

  Doshi, Bharat N.

  Dubashi, Jay

  Duggal, Anjuly Chib

  Economic Advisory Council

  economic growth

  economic impact of note ban

  economic liberalization

  economic mismanagement

  economic perils of a Communist state

  economic policies

  eggs, poultry, fish and meat sellers, impact of demonetization

  Election Commission of India (ECI)

  Electoral Bonds

  Emblems and Names (Prevention of Improper Use) Act

  Emergency

  Enforcement Directorate

  entrepreneurial skills

&n
bsp; e-payment options

  Escudo

  European Union, demonetization

  e-wallets

  Excise Duty

  Fake Indian Currency Notes (FICN)

  fake/counterfeit currency. See counterfeit notes, counterfeiting

  family-planning programme

  farmers, impact of demonetization

  Farooqi, Asad

  FEMA law restrictions

  FICN Coordination (FCORD) Group

  Finacle

  Financial Action Task Force (FATF)

  financial inclusion

  First War of Independence

  fixed deposit rates, decrease

  Forbes, Steve

  foreign investment

  Forint, Hungarian currency

  France

  demonetization during the French Revolution

  Germinal Law

  Friedman, Milton

  G7

  Gandhi, Indira

  Gandhi, M.K.

  Gandhi, R.

  Gandhi, Rahul

  Gandhi, Shailesh

  Garg, Prashant

  Gazette of India

  geo-political challenges

  geo-political events

  George V series notes

  George VI series notes

  Germany: demonetization during the Weimar Republic

  Rentenmark Ordinance

  Ghana, demonetization

  Ghormade, Bandu

  Ghosh, Gautam

  Ghosh, Soumya Kanti

  global recession

  Goods and Services Tax (GST)

  Network (GSTN)

  Gopinath, Captain

  Gorbachev, Mikhail

  Gowda, Sadananda

  Goyal Piyush

  GPS nano chips, rumors on

  Grindlays Bank

  Gross Domestic Product (GDP), impact of demonetization

  Gross Fixed Capital Formation (GFCF)

  Gross Value-Added (GVA)

  Gujarat State Petroleum Corporation (GSPC)

  Gulf countries and the Indian rupee

  Hali sicca

  Harari, Yuval Noah

  hawala transactions

  Hazare, Anna

  HDFC Bank

  High Denomination Bank Notes (Demonetization) Amendment Bill

  High Denomination Bank Notes (Demonetization) Act

  High Quality Fake Indian Paper Currency

  Hindu nationalist movement

  Hitler, Adolf

  household sector, impact of demonetization

  human impact of note ban

  human trafficking

  Hungary: demonetization post-World War II

  Hyderabad Currency Act

  Hyderabad princely state

  hyperinflation

  in Germany

  in Hungary

  in Nigeria

  in Soviet Union and Russia

  in Zaire

  idle savings, forcing into banking system

  Idris, Mohammed

  Immediate Payment Service (IMPS)

  Income Tax Department

  income tax returns (ITRs)

  income tax raids

  India Against Corruption movement

  Indian Coinage Act

  Indian rupee, a brief history

  Indian Statistical Institute (ISI), Kolkata

  Indrawati, Sri Mulyani

  informal economy, integration into formal sector

  Infosys

  infrastructural deficits

  innovativeness, ix

  Insolvency and Bankruptcy Code (IBC)

  International Council on Women’s Business Leadership (ICWBL)

  International Monetary Fund (IMF)

  Inter-Services Intelligence (ISI)

  sponsored ‘thousand cuts’ strategy in Kashmir

  investment banking

  Jack Ma’s Alibaba

  Jain, Apurv

  Jain Hawala diaries’ case

  Jain, S.K.

  Jain, Sanjay

  Jaitley, Arun

  Jalan, Bimal

  Jan Dhan Yojana bank account

  Jan Sangh

  Janaki Raman, R.

  Janata Party

  Japan: Currency to GDP ratio

  Jefferson, Thomas

  Jethmalani, Ram

  Jhala, Sharda

  Jiaozi

  jobs, impact of demonetization

  Kabila, Laurent

  Karmali

  Karthikeyan, Ananth

  Kejriwal, Arvind

  Keynes, John Maynard

  Khushwaha, Lallan Singh

  Kim Il-sung

  Kim Jong-il

  Kim Jong-un

  King’s Portrait series notes

  Kitchen, Helen

  Kokkat, John

  Kotak Institutional Equities

  Kotak Mahindra Bank

  Krishnamachari, T.T.

  Kumbhar, Ambika

  Kutch princely state’s Kori currency

  KYC compliant accounts

  labour force in informal sector

  labour market and employment conditions

  Lao Tzu

  Lavasa, Ashok

  Lazard

  leather manufacturers and tanneries, impact of demonetization

  Leclercq, Hughes

  lending, impact of demonetization

  lending rates, decrease

  liquidity crisis

  Lok Sabha elections

  2009

  2014

  Maharashtra Pollution Control Board

  Malti, a woman micro-entrepreneur

  Mamballi Nedughadam Fishermen Society

  Mandal riots

  Mankad, Sudhir

  Manmohan Singh

  manufacturing sector

  Marandi, Basanti

  Marginal Cost of Funds Lending Rate (MCLR)

  Marks, German currency

  Meghwal, Arjun Ram

  Micro, Small, and Medium enterprises (MSMEs)

  Ming dynasty

  Ministry of Statistics and Programme Implementation (MoSPI)

  Mishra, Arun

  mobile revolution

  mobile wallets

  Mobutu, General

  Modi, Narendra, ix

  allegations of corruption against

  three main goals

  fourth main goal

  Moily, Veerappa

  monetary policy and economic issues

  Monetary Policy Committee

  money laundering

  Moose, George

  Mor, Nachiket

  Moreira, Patricia

  Mozoomdar, Ajit

  M-Pesa

  Mukherjee, Pranab

  Multi Commodity Exchange of India Limited (MCX)

  Mumbai District Central Co-operative Bank

  Mumbai Port Trust (MbPT)

  Mundra, S.S.

  Munna Singh

  NAMO App

  Napoleon

  National Accounts Statistics

  National Democratic Alliance (NDA)

  National Electronic Fund Transfers (NEFT)

  National Intelligence Grid (NATGRID)

  National Investigation Agency (NIA)

  National Payments Corporation of India (NPCI)

  National Spot Exchange Ltd. (NSEL) scam

  National Statistical Commission

  Naya Paisa

  Ne Win, General

  Nederlandsche Bank

  Nehru, Jawaharlal

  New Cloth Market, Ahmedabad

  Nichite, Kalpesh

  Nigeria, demonetization

  NITI Aayog

  non-governmental organizations (NGOs)

  non-performing assets (NPAs)

  Non-Resident Indians (NRIs)

  North Korea, demonetization

  oil prices

  Olofsson, Maud

  One97 Communications

  One-Rank-One-Pension (OROP) for defence services

  operational terror financing

  Osmania Sicca

  outsourcing
>
  Pak Nam-gi

  Panagariya, Arvind

  Panama and Paradise Papers

  Paper Currency Act of 1861

  paper currency

  in Australia

  in China

  fake

  in France

  in the Portuguese territories

  Parliamentary Finance

  Pashupati Mills, Ahmedabad

  Patel, H.M.

  Patel, I.G.

  Patel, Mukesh

  Patel, Urjit

  Patra, Michael

  Pavlov Reform

  Pavlov, Valentin

  Pawar, Jagdish

  Paytm (Payment Through Mobile)

  Pengő, Hungarian currency

  Philippines

  political donations

  pollution and climate change

  Pollution Control Board

  Port Trust

  PortLands, Mumbai

  Prajapati, Prem Shankar

  Prajapati, Yogesh

  Prasad, Ravi Shankar

  Prashant Bhushan

  Prepaid Instruments (PPIs)

  Princely States

  exempted from scrutiny and questioning during the 1946 demonetization

  and foreign territories, conversion of currencies

  property transactions

  prostitution

  Public Accounts Committee (PAC)

  Public Interest Litigation (PIL) against Port Trust

  Puri, Hardeep Singh

  Qasimi, Sheikha Lubna bint Khalid bin Sultan Al

  Qing dynasty

  Rabari, Govindbhai

  Raghu Raman, Captain

  Raipur Iron and Steel Trade Association

  Rajan, Raghuram

  I Do What I Do

  reservations on demonetization

  Rajendra Prasad

  Rajesh, R.V.

  Rajitha K.A.

  Rangarajan, C.

  Rao, P.V. Narasimha

  Real estate in Mumbai

  real estate prices

  Real Estate Regulatory Authority (RERA) Act

  Real Time Gross Settlement (RTGS)

  Reddy, N. Sanjiva

  Reddy, Y.V.

  redenomination or revaluation of currency

  Reichsmark

  remonetization

  Renminbi

  Rentenbank

  Rentenmark

  Reserve Bank of India (RBI)

  autonomy

  decision-making process

  and digital/cashless transactions, 181–82, 186 embarrassment and fall from grace

  liquidity management operations

  notifications and amendments

  policy decisions, about-turns

  printing press

  professionalism of officials

  role of

  Reserve Bank of India Act

  Right to Information (RTI) Act

  Rijiju, Kiren

  risk aversion in the banking sector

  Rodin, Judith

  Rogoff, Kenneth

  Rohatgi, Mukul

  Roman Empire: demonetization in the third century

  Rosenblum, Peter

  Roy, Amitava

  Royal bank of Scotland (RBS)

 

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