|| SHANIWAR SAMWAD || 27-05-2023

 Rs. 20000 has been on the verge of extinction, on 19/5/2023 RBI announced for same with one rider final call to end legal tender will be decided after 30-09-2023. Till then it is legal tender for any transaction.

The different theories and story has been presented and it will go on till its logical end.

The economy is well poised to expand and the final shock due to this is very less or negligible. The world saw our economy to convert in digital  mode in very short span of time.

The daily transaction by digital mode is more than 60 Billion which is far more than entire transaction done by both US and Euro zone countries.

The quantum in value term is more than 50%  of total amount.

The many issues due to this had been solved, which is in public domain which we are not going to discuss here.

The theory, rates for borrowing will reduce as money will get deposited in banks stands half true as exchange is allowed but now hoarding or cash stashing will reduce.

The money is hoarded, avoids its circulation which is harmful to economy. The money should circulate to create wealth for all.

Above we said that cost of borrowing will reduce after this exercise but in practicality it happened already for both the government and corporates.

The T Bills rates are reducing gradually as tax compliances are getting increasing with tax collection increasing.

The other reason for this that compliance cost is getting reduced with digitalization of system.

The FDI is all time high with firm commitments and on ground investment.

Purchase price parity shows us third position in global raking amongst all.

The present move will end in Sep23 then final count of money will be known but it will be less than that is presently in the market and other effects will  emerge after some time.

Location: India

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