1. Good news: How demonetisation powered savings habit in public; RBI data reveals big surprise

Good news: How demonetisation powered savings habit in public; RBI data reveals big surprise

The demonetisation drive led to significant changes in the savings habits of people and formalization of the assets market.

By: | Updated: August 31, 2017 3:10 PM
demonetization drive, RBI, significant changes in savings habits of people, formalization of assets market, mutual fund, life insurance As part of fillip to digitalization, about 52.4 crore unique Aadhaar numbers have been linked to 73.62 crore accounts in India.

Whatever may be consequences of the demonetisation of high-value currency notes on the Indian economy and people in general, the demonetisation drive led to significant changes in the savings habits of people and formalization of the assets market. “Considerably more funds came into the organized financial markets, whereas earlier households were parking much of their savings in unproductive physical assets,” says the RBI report on demonetisation.

According to the report, savings in the form of investment in equity mutual funds, life insurance premia etc increased. The total assets under management (AUM) of mutual funds (MFs) rose by 54% by the end of June 2017 from March 2016. As on 16 August 2017, the number of Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts stands at 29.52 crore with rural accounts comprising 60% of it. Thanks to demonetisation-led efforts, zero balance accounts under PMJDY declined from 76.81% in September 2014 to 21.41% in August 2017.

As part of fillip to digitalization, about 52.4 crore unique Aadhaar numbers have been linked to 73.62 crore accounts in India. As a result, every month now, about 7 crore successful payments are made by the poor using their Aadhaar identification. The government now makes direct transfer of Rs 74,000 crore to the financial accounts of 35 crore beneficiaries annually, at more than Rs. 6,000 crore per month. Now with the BHIM App and the Unified Payments Interface (UPI), a secure and seamless digital payments infrastructure has been created so that all Indians, especially the poor, can become part of the digital mainstream.

Digital payments have increased by 56% from 71.27 crore transactions in October 2016 to 111.45 crore transaction till the end of May, 2017. Within reach of the country is what might be called the 1 billion-1 billion-1 billion vision i.e. 1 billion unique Aadhaar numbers linked to 1 billion bank accounts and 1 billion mobile phones. Once that happens, all of India will become part of financial and digital mainstream.

  1. S
    Sadasivan
    Aug 31, 2017 at 3:35 pm
    Another propaganda for Aadahar which is extremely dangerous for Indians,as Dictatorship will be the norm under Aadhaar,Surveillance and loss of liberties. will thrive under Aadhaar,which is being imposed on the reluctant, Indians. Aadhaar Dictatorship of the Globalist Elites like G 20,IMF,USA,CFR,Bilderberg Aadhaar Slavery for Indians Aadhaar Slavery to Foreigners
    Reply
    1. S
      Sadasivan
      Aug 31, 2017 at 3:29 pm
      Another wrong propaganda a la Paul Joseph Goebbels and others are called "unproductive',while Cash in banks in Digital form is labelled,"savings"! 1 dians are savers and the rates being lowered will hit them hard. 2.Digitzation is highly dangerous unsafe for many reasons,like lack of Freedom to choose the mode of transaction and Privacy..Banks have a better CASA and oppressive Governments can confiscate the wealth,in Digital form with NIRP.Since the Digital wealth is ALWAYS with banks,interest rates can be lowered. This helps the toxic derivatives from being banned or regulated,as they stand in the way of rates being raised. This way prices of everything will be manipulated to the value the vested interests which are exposed them hugely,want. 4.Demonetization,and attacks on Gold and Cash,are some of the steps towards Dictatorship of G 20.IMF,CFR,USA,Bilderberg ,USAID,Better Than Cash Alliance, over India. 5 dians are going to be slaves after digitization and demonetization
      Reply
      1. P
        Proud Indian
        Sep 2, 2017 at 4:29 am
        Do you have e mail FB Other SM mobile apps ? Check read Privacy terms then talk. Perverted black money stashers mindset. Nothing is private in digital world esp with smart phone TV PC etc Learn to move with times. If you are honest tax payer then you will not grudge, but want to get freebies at other tax payers cost. Stop this Propoganda Antinational.
        Reply

      Go to Top