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Nisha , United we stand Nov, 18 2016

What should be Governments next step with the excess black money it gets its hands on?


A lot of raids are happening and this is not even the start. IT department will start of with tits work from December 31st to see the amount of black money which was converted to white somehow and will get hold of these hoarders. However the question is what will RBI/ Govt do with this money which was not even in the system till now.

What are your suggestions?


A lot of raids are happening and this is not even the start. IT department will start of with tits work from December 31st to see the amount of black money which was converted to white somehow and will get hold of these hoarders. However the question is what will RBI/ Govt do with this money which was not even in the system till now. What are your suggestions?

Sanjay , Nov, 19 2016


Infusion of fund in PSU banks to deal with the rising NPA issue and clean their booksheet and increase the lending hence decreasing the bank interest rates. Govt can use the money in fundling infrastructure projects which we so direly need and increase the emloyement and income of the country. We can also try paying back the interest and loan to international organisation.

Infusion of fund in PSU banks to deal with the rising NPA issue and clean their booksheet and increase the lending hence decreasing the bank interest rates. Govt can use the money in fundling infrastructure projects which we so direly need and increase the emloyement and income of the country. We ca


Vanshika Malhotra , Preparing for UPSC with an intention to work Nov, 19 2016


Agreed BUT, It will send a wrong signal to the foreign investors,who may avoid investing their money in fear of further crackdown which is seen as a anti-capitalist move. Doubt on Govt's motive-This step was more concerned about cleaning the black money in the country,if done otherwise,there may be question on govt's intent. More expenditure may lead to more schemes for public appeasement before election in a state.
Agreed BUT, It will send a wrong signal to the foreign investors,who may avoid investing their money in fear of further crackdown which is seen as a anti-capitalist move. Doubt on Govt's motive-This step was more concerned about cleaning the black money in the country,if done otherwise,there may be


Raghav , Nov, 19 2016


This move would not solve the problem of unaccounted money that are parked in Tax havens abroad, thus bringing back normality of ensuring 14 lakhs crore new currency notes before the upcoming Budget ,itself possess a logistic challenge to the bankers. The government and the authorities are working round the clock and a substantial gain to the Indian economy from this move would be experienced in the coming months .

This move would not solve the problem of unaccounted money that are parked in Tax havens abroad, thus bringing back normality of ensuring 14 lakhs crore new currency notes before the upcoming Budget ,itself possess a logistic challenge to the bankers. The government and the authorities are working r


Ritwik , Nov, 19 2016


The move is basically to curb the black money outfits but also it would lead to filling the coffers of the bank and thus will help in maintaining the capital adequacy ratio.This can have multiplier effect since with adequate capital at disposal,the bank rate would be lower which would facilitate in the investment thus catalysing an economy. This would also reduce the chances of NPA's as the genuine loan taker would be identified.

The money coming through Demonetization should be used by government in reducing fiscal deficiencies.Moreover the money can be utilized in infrastructural project which would attract investor.The money can also be used for social schemes which would enhance human development.

The move is basically to curb the black money outfits but also it would lead to filling the coffers of the bank and thus will help in maintaining the capital adequacy ratio.This can have multiplier effect since with adequate capital at disposal,the bank rate would be lower which would facilitate in


Saunika Mahewari , An agri-farming consultant Nov, 19 2016


This is definitely a huge boost to government's and RBI's accounts but it also adds a huge responsibility on these authorities. Having money does not mean that government should not worry about private investment or FDI. Also, too lavish spending on government procedures or subsidies should also be kept in check. An investor friendly environment has to be made so that these deposits are taken up as credit. This would maintain the profitability of banks. Too much deposits means less liquidity. The authorities need to strike a balance between the two. Passing on the benefits of this move to banks and general public by keeping macroeconomic interests in check.
This is definitely a huge boost to government's and RBI's accounts but it also adds a huge responsibility on these authorities. Having money does not mean that government should not worry about private investment or FDI. Also, too lavish spending on government procedures or subsidies should also be