Impact of note ban on economy discussed

ALLAHABAD: A special lecture on demonetization was organised by the department of economics of Jagat Taran Girls Degree college, a constitution college of Allahabad University, on Friday. Prof Manmohan Krishna, head of the department of economics, AU, and Prof PK Ghosh of the same department, addressed the students. Prof Krishna threw light on the legal aspects of demonetization. Quoting figures from the GoI report, Krishna said black money in our economy is almost 200 % of the country GDP. He added that before demonetization, there were almost 14.80 lakh worth 500-1000 currency notes in the economy of which almost 91% has been deposited in banks till now. He discussed the impact of demonetization with special reference to rural economy. About cashless economy, he said that it will be beneficial only if an individual is not deprived of his economic and social freedom. Prof PK Ghosh, quoting GoI’s report, said that three Cs are responsible for black money in the country. The commercial component is responsible for 60% of the black money, crime component for 35% and corruption component for the 5%. Ghosh said that after demonetisation, India’s growth rate would be around 6.5%, and the economy will take over five years to recover.