November 7, 2017

Counterview: One year after demonetisation, the government has data to show it worked

... The onus was clearly on the government to prove that demonetisation was a success. Swallowing its pride, the government waited patiently for data to show up. One year down the line data has just started trickling in.

The government’s crackdown on shell companies shows that around 35,000 of the 2.24 lakh shell companies deposited Rs 17,000 crore post the demonetisation drive only to withdraw it later, thus raising suspicions of ‘wrong entries’.

In one such case an account with a negative balance just before the demonetisation day saw Rs 2,484 crore being deposited and withdrawn soon after. Other examples were also shared by the Finance Ministry and Corporate Affairs Ministry to showcase how the money entered the banking system.


Full text: Arun Jaitley presents his report card on demonetisation

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