Demonetization, Digital India and Governance

by Niranjan Sahoo, Sarika R. Lohana

Overview

The International Monetary Fund (IMF) has hailed India as a bright spot amidst a slowing global economy. The Indian economy has the potential to achieve a double-digit growth rate but, in spite of this, a host of problems confront it. These problems include: black money; corruption; money laundering; counterfeit currency; tax evasion; and terrorist financing. The new government, which took charge May 2014 under the leadership of Prime Minister Shri Narendra Modi, had a vision to make India a modern and vibrant economy. Policies and programs to rejuvenate the economy were announced in this regard and, due to this, the Government of India decided to withdraw the legal tender character of Rs. 500 and Rs. 1000 banknotes of the Mahatma Gandhi Series on November 8, 2016. These demonetized bank notes accounted for 86 percent of the country's cash supply. One major objective of the demonetization exercise is to encourage cashless/electronic transactions in the economy. The Government of India made the policy decision to encourage electronic transactions and has, in this regard, announced a number of incentives. The use of digital technology to improve governance cannot be over-emphasized. Digital technology has become the greatest agent of change and promises to play a role even more dramatically in future. Technology, competition, and benchmarking to the best international practices have to be the driving force of India's development efforts, and India's demonetization exercise needs to be seen in this perspective. *** "Investigates the demonetization of high denomination currency in India in 2016 in the context of the country's efforts to reduce corruption, money laundering, and counterfeiting and increase the country's ability to compete, taking advantage of digital technology and meeting economic benchmarks.... Sahoo is Associate Professor in the Department of Rural Management at the Xavier Institute of Social Service. Lohana is UGC-Dr. Radhakrishnan Postdoctoral Fellow in Humanities and Social Sciences with the School of Commerce and Management Sciences at Swami Ramanand Teerth Marathwada University. Bibliography; index." —Journal of Economic Literature, Vol. 55, No. 4, December 2017 [Subject: South Asian Studies, Economics]

Product Details

ISBN-13:	9788177084412
Publisher:	New Century Publications
Publication date:	02/28/2017
Pages:	236
Product dimensions:	5.75(w) x 8.75(h) x 0.90(d)

Table of Contents

About the Book v

About the Authors vi

Preface xiv

Explanation of Select Terms Used Frequently in Financial Digitization xxiv

1 Demonetization of High Denomination Currency Notes in India 15

1.1 Demonetization Defined

1.2 History and Background

1.3 Prime Minister's Historic Announcement to Withdraw Legal Tender Character of 500 and 1000 Banknotes

1.4 Objectives of the Scheme

1.5 Main Features of the Demonetization Scheme

1.6 Package for Promotion of Digital and Cashless Economy

1.7 Reactions to Demonetization

1.8 Pradhan Mantri Garib Kalyan Deposit Scheme,2016

2 The Menace of Black Money in India 37

2.1 Black Money Defined

2.2 Global Concerns against Black Money/Tax Evasion

2.3 Sectors/Activities More Prone to Black Money Generation

2.4 Activities Leading to Generation of Black Money

2.5 Methods to Generate Black Money

2.6 Consequences of Black Money/Tax Evasion

2.7 Estimation of Black Money

3 Institutional and Legislative Measures to Curb Black Money 56

3.1 Agencies for Enforcement of Tax Laws

3.2 Regulatory Authorities for Supervision and Policing

3.3 Co-ordinating Agencies

3.4 Other Agencies

3.5 Recent Legislative Measures to Prevent Generation of Black Money

4 Economics of Digitization and Digital India (Dl): Vision 2019 71

4.1 Economics of Digitization

4.2 Digital Economy and Knowledge Economy

4.3 Digital India (DI): Vision 2019

5 Governance with Digital Tools 91

5.1 Governance: Theoretical Framework

5.2 Digital Tools for Improving Public Services in India

5.3 Digital Tools for Tax Administration

6 Internet Banking and Mobile Banking 107

6.1 Internet Banking

6.2 Mobile Banking

7 Digitization of Stock Exchanges 116

7.1 Corporatisation and Demutualisation of Stock Exchanges

7.2 Depository System, Dematerialisation (Demat) and Rematerialisation

7.3 Infrastructure for Government Securities Market

8 Digital Payment Systems 142

8.1 Importance of a Sound Payment and Settlement System

8.2 Segments of Payment System

8.3 Large Value Payment Systems

8.4 Retail Payment Systems

8.5 National Payments Corporation of India (NPCI)

8.6 Committee to Review the Framework Related to Digital Payments

8.7 Benefits of Electronic Payments

8.8 Credit/Debit Cards

8.9 ATM Networks

8.10 Digital Wallet

8.11 Aadhaar-enabled Payment System (AEPS)

8.12 Unified Payment Interface (UPI) of India

8.13 Unstructured Supplementary Service Data (USSD): *99# Banking

8.14 RuPay

9 Electronic Money (E-money) and Electronic Commerce (E-commerce) 156

9.1 Electronic Money (E-money)

9.2 E-money and Digital Money

9.3 Electronic Commerce (E-commerce)

9.4 Internet Marketing

10 Digital Technology for Pradhan Mantri Jan-Dhan Yojana (PMJDY), 2014 169

10.1 PMJDY: Brief Introduction

10.2 Six Pillars of PMJDY

10.3 Challenges Identified in Implementing the Mission

10.4 Roles of Major Stakeholders

10.5 Use of Digital Technology for PMJDY,2014

11 Digital Services in Agriculture and Rural Development 184

11.1 Need for IT-based Services to Fanners

11.2 Rural Portal of Ministry" of Rural Development (MoRD)

11.3 National Rural Employment Guarantee Act Software Package (NREGASoft)

11.4 IFFCOISRO Cooperation

11.5 Cyber Dhabas

11.6 E-Choupal

11.7 E-Panchayat

11.8 Kisan Call Centres (KCCs)

11.9 National e-Governance Plan in Agriculture (NeGP-A)

11.10 Other IT Services to Agricultural Sector

11.11 Computerisation of Agricultural Census and Input Survey

12 India's Cyber Security Policy 196

12.1 What is Cyber Space?

12.2 Need for Cyber Security

12.3 National Cyber Security Policy (NCSP),2013

Bibliography 202

Index 210