Skip to main content

Public Meeting Does Demonetization Tackle Black Money?

Public Meeting
Does Demonetization Tackle Black Money?
November 18, 4-7pm
Constitution Club (Speaker Hall), New Delhi

At the stroke of midnight on November 8, 86% of the value of Indian currency which was in circulation in the country ceased to be legal tender.  Many different adjectives are used to qualify that action – surgical strike, master stroke, third freedom (after freedom from British and license raj), 'Massive swachh abhiyan' and so on. 

Though the government and even the RBI vehemently defend demonetization, the implementation is continuously taking a toll on the common masses and citizens who are put into extreme hardships. The past few days are witnessing a total lack of preparedness by banks and post offices that lack institutional capacity to deal with such a huge magnitude of workload.  Hoards of people began to throng banks and ATMs which is leading to chaos and aggression.  People are starting to break open shops for food as cash is not available to buy essential things. 

Citizens are made to look like suspects and are subjected to hardships and humiliation, in some cases even police lathi charge, for either depositing or withdrawing their hard earned money.

According to Reserve Bank of India (RBI), the total value of the outstanding currency in circulation in the Indian economy as on October 28 stood at Rs 17.77 lakh crore.  The bank account penetration in the country is just 53% and the accounts which are operational are just 15%.  The increase in the bank account penetration in the country from 35% to 53% between 2011 and 2014 due to Jan Dhan Yojana is accompanied by the fact that  72% of these accounts are zero balance accounts.

The worst affected of this is the predominantly cash based informal sector which contributes to 45% of the GDP and nearly 80% of the employment in the country. This move has seriously affected the poor and the middle class, especially women who have savings at home for emergencies. In a country that still has people without bank accounts, identity cards and with few banks branches in rural areas this drastic measure has left the poor stranded without alternatives.

According to former senior Vice President and Chief Economist, World Bank Kaushik Basu the decision to demonetise high denomination currency notes is not 'good economics' and the collateral damage of demonetisation is likely to far outstrip the benefits. All India Bank Employees Association (AIBEA) has stated that demonetisation wont help reduce black money and RBI has messed up the lives of crores of Indians by not planning properly the logistics for the demonetisation move. 

Can such a move by the government, which has impacted all sections of the populations, but the poor and middleclass the most, go without a public debate and scrutiny? While it is too early to fully grasp of the impacts, what is the depth and spread of the impacts on people and the economy? How would demonetization help curbing black money? Going beyond demonetization, what is black-money, what could be the ways in which it could be curbed?

These are some of the questions Center for Financial Accountability and Public Finance Public Accountability Collective would like to address in a public meeting on November 18, 4-7 pm at Constitution Club (Speaker Hall), New Delhi.

Chair: Usha Ramanathan, legal scholar

Speakers for the public meeting include:
Prabhat Patnaik, Professor Emeritus, JNU
Medha Patkar, NAPM
Mani Shankar Aiyar, Congress
D Raja, CPI
K C Tyagi, JD (U)
Thomas Franco, Sr. Vice President All India Bank Officers Confederation
Shaktiman Ghosh, National Hawkers’ Federation
T Peter, National Fishworkers’ Forum
Sunita Rani Minj, Domestic Workers' Union
Bezwada Wilson, Safai Karmachari Andolan
Ashish Khetan, AAP
Brinda Karat, CPI-M
Representative from Swaraj Abhiyan (TBC)
Derek O'Brien, TMC (TBC)
Dipankar Bhattacharya, CPI-ML (TBC)
And others

In solidarity,

Center for Financial Accountability (CFA) &
Public Finance Public Accountability Collective (PFPAC)

Facebook Event Page


  1. Here is the Facebook Event page


Post a Comment

Popular posts from this blog

GST – Impact on Small Industry and the Informal Sector

The Goods and Services Tax (GST), that came into effect on 1st July, 2017, has been lauded as the most comprehensive contemporary reform of Indian indirect taxation. Aimed at creating a common, unified and integrated domestic market, allowing the free flow of goods and services across state lines, GST is supposed to deliver Indian industry and thereby the economy the competitive edge apparently lacking till now.
Reality is however a far cry from the picture painted by government. GST by creating platform a conducive to economies of scale and nullifying regional tariffs, is both conceptually and practically advantageous to big business and detrimental to the informal sector and small businesses.
These groupings, informal and small, though quite different have some degree of overlap. Informal business is overwhelmingly small but not all small businesses are informal. GST’s impact on these groups is quite different both with regard to extent of impact or in terms of results sought.
Small Bu…

Data Governance, FinTech, #Blockchain and Audits

Data Governance and Audit Trail Data Governance specifies the framework for decision rights and accountabilities encouraging desirable behavior in data usage Main aim of Data Governance is to ensure that data asset are overseen in a cohesive and consistent enterprise-wide manner Why is there a need for Data governance?  Evolving regulatory mechanisms and requirements Could integrity of data be trusted? Centralized versus decentralized documentation as regards use, hermeneutics and meaning of data Multiplicity of data silos with exponentially rising data Architecture Information Owner: approving power towards internal + external data transfers + business plans prioritizing data integrity and data governance Data steward: create/maintain/define data access, data mapping and data aggregation rules Application steward: maintain application inventory, validating testing of outbound data and assist master data management Analytics steward: maintain a solutions inventory, reduce redundant solu…

Report release and Panel discussion. “Unfolding Crisis – The Case of Rising NPAs and Sinking Public Accountability” at Constitution Club of India in New Delhi at 3:00 p.m. on 14th September, 2016

Public Finance Public Accountability Collective (PFPAC)
cordially invites you to attend the formal release of its first publication 
Unfolding Crisis – The Case of Rising NPAs and Sinking Public Accountability” 
Constitution Club of India in New Delhi at 3:00 p.m. on 14th September, 2016

Additionally, PFPAC will be organising a panel discussion to analyse the intricacies of Non-Performing Assets (NPAs) with a panel consisting of notable people from across the social, political, economic and financial spectrum:
•Mr. C.H. Venkatachalam – General Secretary of the All India Bank Employees Association (AIBEA)
•Dr. C.P. Chandrasekhar – Professor at the Centre for Economic Studies and Planning, School of Social Sciences, Jawaharlal Nehru University
•Dr. Indira Rajaraman – Former Member of the 13th Finance Commission; Former Professor at Indian Institute of Management (Bangalore); and Former Member of Central Board of Directors, Reserve Bank of India
•Dr. Mohan Guruswamy –Chairman, Centre for Pol…