Monday, 16 January 2017

Who will compensate demonetization expenses?

My View:
Demonetization effect is estimated at Rs.128,400 crores for the 50 day period, effecting the whole economy but with devastating effects on informal economy.
  1. Direct expenses to RBI & GOI Rs.16,800 crores.
  2. Banks to bear an estimated cost of Rs.35,100 crores.
  3. Cost of queues to exchange currency is estimated at Rs.15,000 crores.
  4. Enterprise* losses are estimated at about Rs.61,500 crores.                                 (includes all businesses including farmers, input suppliers, transporters, wholesalers, retailers, manufacturers, stockists and distributors, malls and other retail outlets, restaurants, entertainment and other enterprises) 
  5. Transaction cost of demonetization is estimated at Rs.128,400 crores. 
While banks (public sector & private sector) have spent Rs.35,100 crores, govt plans to compensate public sector banks only by Rs.25,000 crores. Who will compensate private sector bank expenses?

Who will compensate informal sector for the losses (several lakh crores) inflicted by mindless Modi's unlawful demonetization? 

Why should people lose their money for no fault of theirs for government's authoritarian acts without following even pretense of  process of law?

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