Modi’s Cash Crackdown Failed, Indian Bank Data Shows
Demonetization as a black money magic wand is a public face. The following is the other side of the coin, the following as narrated by a banker friend<p>1. Banks were at a historical low in availability of currency in the system due to bad money hoarding and non performing assets. Dangerously near collapse. Demo as the report points out has brought so much money back into the banking system and successfully overturned this.<p>2. Prior to demo. the capital in the stock market was dominated by FII (foreign institutional investors) almost 70%. This resulted in volatility and the Indian economy being vulnerable to external influence. Now the table has turned, the capital in the market is predominantly from the Indian banking system leading to greater stability.<p>3. Now that money is inside the system,anyone who has tried to take money out in cash beyond 5000 USD knows how difficult to near impossible it is now. This is the real effect on bad money, generation is now so damn difficult!<p>4. Anyone honest who has tried to buy a home from big realty developers in India recently would be pleasantly surprised that now you have to purchase it with good money and also pay proper GST tax for it. Before demo this was one major area of bad money generation. It is as good as dead now. Recent reports on the huge huge increase in GST tax revenue increase is a proof.<p>5. Good and bad currency sweeping back into the system (Gov allowed conversion also) has effectively nullified the funding of militancy and the fact that from demo the country has not seen any terrorist actions is a possible indicator.<p>6. Whether you like it or not one more area which encouraged bad money circulation was evangelism (convert to christianity for money) and that is one more area that also been severely impacted.<p>Most US media outlets want to feed the stereotyped view of India and jump at any chance to do that.<p>Most people who cry against demo are those who do it, just because they dislike Modi as a person (not a very charismatic personality). They would not be able to substantiate how they were personally impacted.