8 Low Cost/Investment Schemes for Poor by Indian Governement

In recent years, Indian government for the welfare of poor people has launched various low cost schemes (i.e. requiring minimum investment or small amount of money).

Here is the list of schemes for poor people in India:

Sukanya Samriddi Yojana (SSY): Considered to be the most preferred deposit scheme, it was launched in January 2015. Meant only for the welfare of the girl child, investor needs to deposit sum greater than Rs. 500 every year for the tenure of 14 years. Once the girl child reaches the age of 18 years, 50% money can be withdrawn which can be used for the marriage or education. It is a 100% secured investment scheme and returns are fully exempt from section 80C of Indian income tax act. After the girl child reaches 21 years of age, she has complete right to withdraw money in addition to the return. Although this scheme is not specifically for poor since anyone can open account for the girl child.

Check out a table showing return after investing Rs. 30, 000 in samriddhi yojana.

Pradhan Mantri Jan Dhan Yojana (PMJDY): The objective of this scheme launched in January 2015 is to provide atleast one bank account in every household in India especially poor people. It is a zero balance account. Such was the response to PMJDY that it got entered into Guinness World Record for opening 11.5 crore bank accounts in just 5 months of launch. As on October 2017, 30.17 crore bank accounts have been opened with a total deposit of 66742.47 crore.

Pradhan Mantri Suraksha Bima Yojana: This is the world’s cheapest personal accident insurance scheme with an annual premium of Rs. 12 only. The product covers insured person for accidental death and disability at a lowest premium of Rs. 12. In case of any unfortunate event leading to accidental death and permanent total disability, insured person will get Rs. 2, 00,000 cover. And in case of permanent partial disability, insured will get Rs. 1, 00,000 cover.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): Another cheapest life insurance in India (in fact in the whole world), PMJJBY requires insured person to pay annual premium of just Rs. 330 and a coverage of Rs. 2 lakhs. And claim amount is paid only to the nominee.

Pradhan Mantri MUDRA Yojana: The objective of Micro Units Development & Refinance Agency Limited (MUDRA) bank loan is to provide low interest loan to enterprises who are currently not in the ambit of financial system and are not able to grow due to lack of financing. Minimum loan offered is Rs. 50, 000 and maximum loan offered under MUDRA scheme is Rs. 10 lakh.

Atal Pension Yojana (APY): This social security scheme’s objective is to provide pension to workers from unorganised sector during their retirement. The pension amount ranges from Rs. 1000 – Rs. 5000. Individuals need to contribute money when they are working and depending on the amount contributed and tenure, pension amount will be defined.

Pradhan Mantri Awas Yojana (PMAY): With an objective of providing a house to economically weaker section and lower income group, PMAY was launched. The target set by the government is 5 crore affordable homes to these people by the year 2022. Interested individuals who want to buy home under the scheme will be provided financial support, interest subsidy and direct subsidy.

Pradhan Mantri Jan Aushadhi Yojana (PMJAY): The objective of the scheme is to provide drugs and medicines at low cost through Jan Aushadhi stores. Government would also be providing financial assistance of Rs. 2, 50,000 for opening the store. However these stores can be opened only by private hospitals, NGOs, and other social groups.

There are many other schemes launched by Indian government but the above listed ones have generated great interest.

After GST Pricing Impact on 180+ Most Common Products

Finally, the single biggest tax reform the country has seen after independence i.e. Goods and Services Tax will be rolled out on 01st July 2017. It is also considered to be the most significant and complex economic reform for India.
Under GST, multiple central and state taxes will be combined into a single tax.

Tax on many of the goods will be significantly reduced benefiting Indian consumers. Indian manufactured products will get more exposure in the international markets leading to growth in the economy.

Since the start date is nearing, people are most interested in knowing what is going to be cheap and expensive after GST rolls out. Especially people are keen to know how the price of basic household items will change after GST implementation and how their budget will be impacted.

So here’s the list of most commonly used goods/commodities and services which are expected to see rise or fall in their prices after GST implementation:

Food related items that will be CHEAPERFood related items that will be EXPENSIVEPersonal care items that will be CHEAPERPersonal care items that will be EXPENSIVEUtility Items/Services that will be CHEAPERUtility Items/Services that will be EXPENSIVEExempt from Tax
Cooking gasAerated DrinksSoapHair DyesSmartphones made in IndiaTelevisionFresh fruits
Mustard OilInstant CoffeeToothpasteAfter Shave LotionsLarge carsMobile phone billsVegetables
NoodlesChewing gumsTooth powderDeodrantsSports Utility Vehicle (SUV)RefrigeratorPulses
Aluminium foilsWhite ChocolateHair oilShampoosElectric vehicles -
2 wheeler and 3 wheeler
Solar PanelBreads
Milk PowderCocoa chocolatesKajalSunscreenTwo wheelersRestaurant bill in AC restaurantsHealth
Butter MilkWafers coated with chocolateBeauty productsTaxi aggregatorsMovie ticketsEducation
Unbranded Natural HoneyCustard powderPerfumesCar batteriesCigarettesMilk
CheeseBranded foodgrainsAyurvedic medicinesPaintsTobaccoPaneer
Dairy SpreadsBranded floursMedicinesFansCommercial VehiclesCurd
SpicesWater heaterLife insurance premiumEggs
WheatAC Train TravelGeneral insurance premiumMeat
RiceClothing below Rs.1000TextileWheat
FlourInsulinBranded JewelryRice
Groundnut OilAgarbattiWifi and DTH servicesAnimal Slaughtering and services
Palm OilCementAir conditionerNon AC train travel in local
Sunflower OilCoalWashing machineNon AC train travel in metro
Coconut OilKerosene PdsEating out in 5 star hotelsMaida
Mustard OilX-Ray Films For Medical Use Sporting eventsBesan
SugarDiagnostic Kits And ReagentsGamblingSalt
Palmyra JaggeryPlastic TarpaulinCasinosPuffed rice
Sugar ConfectionerySchool BagBusiness class air travelOrganic Manure
PastaExercise BooksFinancial transactions and banking chargesAnimal feed
SpaghettiKitesCourier servicesFire wood
MacaroniChildren's PictureGoods transport
FruitsDrawing Or Colouring BooksSmall cars
Vegetable ItemsSilk And Woollen FabricsLuxury Goods
Several Food ProductsHelmetSchool fees
PickleEconomy-Class Flight FareMobile phones made outside India
MurabbaFly Ash Bricks BlocksAntique gold coins
ChutneyGlasses For Corrective SpectaclesMusic systems
SweetmeatsFixed Speed Diesel Engines Of Power Not Exceeding 15HpHome theatres
KetchupTractor Rear Tyres And Tractor Rear Tyre TubesHybrid cars
ToppingsWeighing MachineryGold
Instant Food MixesHotel room booking below Rs. 1000LED Television
Mineral WaterTheme park visitsElectronic iron
IceSporting eventsJuicers
LPG StoveMixers
ForksHotel room booking above Rs. 1000 will have different tax
LadlesLuxury hotels stay
SkimmersBranded Gutkha
Cake ServersSmoking mixtures for pipes & Cigarettes
Fish KnivesPaints
LPG domesticStudents' colours
Kerosene PDSAC train tickets
Ice Creams
Processed food
Food grains

The goods and service tax is currently fixed under four tax slabs: 5%, 12%, 18%, and 28%. There has already been delay in GST implementation. However 01st July 2017 has now been finalized.

So as an Indian we should support one nation – one tax system. And remember big change happens for good. Government has made sure to not burden common man with high inflation.

8 ways demonetised notes were used to launder money

Not later than hour after Prime Minister announced demonetisation of Rs. 500 & Rs. 1000 notes on November 08, 2016; an illicit business of converting these two currencies into jewelleries gold, diamonds & silver, forex had started. And this business started spreading across India.

Let’s check out the ways money laundering business rapidly started spreading:

Foreign exchange: Individuals who’d good amount of black money, converted crores of demonetised notes into forex especially USD. This is due to the fact that dollar is the most sought currency across the world including India. A dollar typically costs around Rs. 120 – Rs. 140 in old demonetised notes.

Hawala: Black money stashers made hawala their favorite money transfer option. People started sending their black money abroad through hawala dealers also called as agents. These middleman charge a very high premium to park the money in foreign currency in Arab and South Asian countries which mainly includes Dubai, Singapore and Malaysia. Hawala has traditionally considered to be a channel to transfer funds.

Bullion: One of the most easiest and convenient option used to launder money was the bullion. From the night on which currency ban was announced, people started investing unaccounted wealth in buying bullion, jewelry and diamonds. Other options were buying expensive luxury stuffs such as watches, etc.

Read more on effects of currency ban

Petrol pumps: Since they were allowed to accept old currency notes till 24th November, several petrol pump owners across the country assisted in cleaning the black money by accepting old notes but in return of smaller sum.

Hospitals: Surprisingly hospitals were also involved in laundering black money by accepting demonetized currency notes.

Check out positive impact on Indian economy due to demonetisation.

Nepal – Bhutan: Since Indian government allowed old notes can be exchanged in these countries, individuals created opportunity to park their money via smuggling to these countries. Since border vigilance is poor in these two countries, transfer of money seemed very effortless.

Tribal areas: This includes Northeast areas such as Nagaland, Manipur and Arunachal Pradesh since they are tax exempted. No transaction related questions are generally asked in these places. So disposing of cash took place through this channel as well.

Jan Dhan Account: Started in the year 2014 for poor people by making one bank account for each family in India, rich people made poor people become rich for a while by depositing banned currency notes in JDY account holder. So accounts which are ideally dormant started seeing lakhs of rupees. Income tax department is now going to scan every such suspicious account.

So post the currency ban, the most critical question still remains unanswered – Will the poor get poorer and the rich richer post demonetisation? Please spare some time and share your valuable thoughts in the comments section below.

How Budget 2017 was different from Earlier Budgets

By now everyone must be knowing that Union Budget for 2017-2018 was presented by Finance Minister Shri Arun Jaitley on 01st February 2017. However very few of us know that how this budget was different than all the budgets which had been presented over years in India.

Let’s have a look:

Union and railway budget presented in advance: Budget in India were normally announced in the last week of February or in the month of March until the year 2016. However this year, for the first time, announcement of the budget took place in the 1st week of February. One of the objective is facilitating the development work.

Railway budget and union budget presented on same day: The largest transport company in India had a history of presenting the rail budget before the union budget. But in 2017, both these budgets were announced on the same day.

Railway minister did not present the rail budget: Until 2016, the railway budget was presented in the parliament by the Railway minister. However this 92 year old tradition was changed in 2017 budget, as the presentation of rail budget was given by Finance minister Shri Arun Jailey and not Shri Suresh Prabhu, who is the current railway minister.

Economic survey: Since union budget was presented nearly a month in advance, the economic survey date was also preponed and was announced on 31st January 2017.

Read interesting facts on Indian budget.

Digital budget: This year’s budget was presented in a paperless format. Every year hard copies of the circulars are released by the government in paper format and passed on to all the member of parliaments. However in 2017, all the important documents will be made available through Union Budget Information System (UBIS).

Aadhaar Payment App: 11 Benefits, Payment Process, Requirements

India is truly on the path of becoming digital. After range of initiatives launched by the government of India such as digital locker, unified payment interface (UPI), and others the new addition is the “Aadhaar Payment App” which would be launched on 25th December 2016.

What is Aadhaar Payment App?

Ever heard of making payment without cash/card/mobile phone/cheque? Aadhaar payment app is the answer which would work on biometric technology. It is basically another payment method i.e. Aadhaar linked digital payment. Until now, Indians used to make payments via cash/credit or debit card/mobile wallets/cheque and others. But through this app, individual i.e. buyers would just need Aadhaar number to make payment. Just refresh your memory by remembering the SMS notifications you have been receiving lately by the bank – to link Aadhaar with your bank account. The launch of this app should have been the reason for those alerts.Aadhaar and BankAccount Linking

Development of this app was done by IDFC bank along with UIDAI and National Payments Corporation of India.

What are the benefits to Indian consumers using this app?

  • The biggest advantage of Aadhaar payment app is that there won’t be any service charge on the transactions. So it would be completely affordable by every Indian – poor to rich.
  • The biggest beneficiaries would be people from rural India who could not afford card/mobile wallets due to the various charges involved.
  • Currently if you make any transactions via Visa or mastercard, there is a service charge involved along with convenience fee.
  • Also consumer needs just an Aadhaar number which is linked to his/her bank account to make payment.
  • There won’t be any need of credit/debit card, cash or cheque, mobile wallets, etc.
  • No need to download any app when making purchase in-store.
  • Most importantly you won’t even need mobile phone to make payment.
  • No more worry of remembering long passwords, PIN details, wait for OTPs, etc.
  • Dependence on installing multiple payment apps on smartphone will reduce.
  • This will reduce point of sales (PoS) machines.
  • More secured compared to cash/card/digital wallets. If any of this gets lost/stolen, it becomes troublesome and financially risky. Even if your Aadhaar number gets shared with anyone, he/she cannot misuse it and make payment. Because for making payment using this Aadhaar app, the person should be physically available.

Do you know RuPay card, India’s answer to Visa and Mastercard. Read more on RuPay card benefits and comparison to visa and mastercard.

How to make transactions or pay using this app?

  1. Once purchase is made, only detail required would be your 12 digit Aadhaar number.
  2. Merchant will use a biometric scanner and take thumb scan. It is similar to what you did when registering for Aadhaar card.
  3. Once scanning is done, all the linked bank accounts of the consumer will be displayed. And you will have to select from which bank account payment has to be made. Once bank is selected and fingerprint is successfully authenticated, money will be automatically debited from your chosen bank account.

Requirements for making payment via Aadhaar payment app:

Both the entities i.e. consumer and merchant will require the following:

Three basic requirements from consumer:

  • You need to have Aadhaar number. And of course remember it:)
  • And this number should be linked to your bank account.
  • At the time of payment, person should be present.

Requirements at the merchant’s end:

  • He/she should have android phone and fingerprint biometric scanner.
  • Aadhaar payment app has to be installed on his/her smartphone with scanner connected to it.
  • This app has to be linked with the account number of the merchant

It is now our duty to educate as many people possible to make use of this outstanding digital technology and make India digitally super powered. Hope this reduces the critics blaming the cashless India dream. Truly it’s a Christmas Gift to India by our honorable Prime Minister Shri Narendra Modi. Read more on currency ban and the effects of demonetisation.

Here’s what government of India is planning to spread awareness of this payment app:

  • Workshop on digital transaction will be conducted to train 14, 00,000 village level entrepreneurs (VLE).
  • This training would be conducted in over 500 districts and 6500 blocks.
  • Each VLE will then train 40 individuals and 10 shopkeepers
  • More people will be encouraged to open bank account and enroll for Aadhaar.
  • New smartphones are on the way to launch supporting Aadhaar authentication using the iris scanner on the device.
  • More devices will be launched to support Aadhaar based biometric authentication in the coming months.

What if you want to make payment for the stuffs purchased online?

For this consumer needs to have the consumer app, another form of mobile wallet which is again linked to the Aadhaar number. More on this feature would be updated soon.

How to get this app?

Individuals can download the app from android store from this link from 25th December 2016. Link would be updated in this article once it is available.

Pradhan Mantri Garib Kalyan Deposit Scheme: Application Form, Tax, FAQs, Benefits

Government is giving the last and final chance to all the tax evaders to deposit their unaccounted income through Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), a newly launched scheme. Part of money collected through PMGKDS will be infused into social security schemes run by the government of India i.e. for the welfare of the poor people. It is a fresh crackdown on the black money holders and a final last chance.

What is PMGKDS?

It is a new income disclosure scheme announced on 16th December 2016. The scheme will allow all the tax evaders or black money holders to disclose their unaccounted/accounted income by paying higher tax.

What taxes will have to paid?

Any individual declaring undisclosed income will have to pay multiple types of taxes as follows:

  • 30% tax on income
  • 33% as surcharge tax
  • 10% penalty on the overall income
  • 25% of total declared amount for PMGKDS

When will the disclosure scheme start and end?

Scheme start date will be 17th December 2016 and end on 31st March 2017.

For what purpose this money will be used and what are the benefits?

Money collected through Pradhan Mantri Garib Kalyan Deposit Scheme will be used for various social security schemes which are mainly aimed for the benefiting the poor people. The lock-in period under the scheme will be 4 years.

Few of the social schemes announced by the government are:

  • Jeevan Jyoti Bima Yojana
  • Suraksha Bima Yojana
  • Jan Dhan Yojana
  • Sukanya Samriddhi Yojana
  • Awas Yojana
  • Atal Pension Yojana
  • Digital India
  • Gram Sadak Yojana
  • Rashtriya Swashtha Yojana

How to deposit the undisclosed wealth and contribute to PMGKDS?

Individuals will have to deposit money in the bank along with the application form. Banks will have to send these details to department of Revenue, Ministry of Finance, and Government of India. And also upload the details of the deposits to RBI’s core banking solution. RBI will maintain Bonds Ledger Account for the deposits. Upon declaring, certificate of holding will be given to the declaration. Here’s the official snapshot of the certificate released on the RBI website.

Pradhan Mantri Garib Kalyan Deposit Scheme - Certificate of Holding
Application form for PMGKDS is as shown in the below image:

You can also download the application form from this official RBI’s website link.

Will the declarant get deposited back?

Yes, but after 4 years of lock-in period. If declarant dies, then money will be repaid/transferred to the nominee. Nomination facility is also available while declaring the money. No interest will be paid on the repayment amount.

What are the payment modes for depositing the money?

Deposits can be made in the form of cash/cheque/demand draft in the authorized bank.

What are the documents required while disclosing unaccounted income?

Declarant will have to furnish PAN details, bank account details, nominee details along with the nominee’s bank account details.

What if someone fails to declare the income by 31st March 2017?

On such individuals government is expected to take criminal action along with a penalty by charging very high tax.

How can someone reach income tax department if they have information on such black money holders?

Individuals with any information related to black money can E-mail I-T department on [email protected]. Everyone should come forward and make a pledge to help government in this initiative by giving whatever information you have about black money. This will make India an economic super power soon.

For clarification or queries related to PMGKDS, you can E-mail RBI on [email protected].

Demonetisation: Raids, Arrests, Illegal Currency Conversion

By now, everyone must have gone through hardship in getting currency either from ATM or Bank atleast once. People are standing in queues even before the doors of bank or ATM opened.

The main objective of the currency ban was to end black money in the market and fake currency which has been hurting India’s economy and internal security. However even after the currency ban, fraudsters have invented multiple ways to trick the system and within month of the ban there are news from across India of illegal ways new currency notes have been circulating in the market, old currency notes converted in bulk in exchange of new notes unethically, money laundering, and others.

Read on effects of demonetisation.

Several arrests have been made across India involving officers from banks, Reserve bank of India, post offices and others such as public servants, middleman etc.

Here is the list of countrywide raids conducted by CBI, IT department, police on various banks, post offices, individuals, and other places/individuals. Arrests have been made across country which surprisingly includes bank officials.

Bank of Baroda: Official has been arrested for converting currencies valued at INR 50, 00, 000 (50 Lacs).

RBI: Senior officer arrested for allegedly converting amount worth Rs. 1.5 Crores.

Axis Bank: One of India’s top most private bank was also involved in the misconduct.

Officials from SBI, Kotak Mahindra Bank, State Bank of Mysore, ICICI Bank have been booked for illegally converting amount worth Rs. 5.7 Crore.

ATM servicing company and banking personnel from Karnataka Bank and Dhanlaxmi Bank have also been arrested.

Central Bank of India and other connected individuals are arrested for issuing 149 demand drafts worth Rs. 70 Lakhs.

Currency conversion charges have also been registered on officials from State Bank of Bikaner and Jaipur and Indian postal department.

From Punjab, 4 persons were arrested for printing fake currency notes of Rs. 100 and Rs. 2000.

Undisclosed income worth Rs. 18 Crore has been recovered from oil manufacturer in Punjab.

Black money worth Rs. 6.5 Crore was seized from a garment manufacturer in Punjab.

Latest update on currency ban: Government launches Pradhan Mantri Garib Kalyan Deposit Scheme for black money holders to declare their undisclosed income.

RBI’s action plan to control this illegal activity:

RBI has ordered bank to put CCTV camera until 30th Dec to keep a track of illegal activities such as counterfeiting of new currency notes.

Monitor new notes released from currency chests.
As of now, across India 16 arrests have been made with currency conversion amount Rs. 19 Crore.

Demonetization Effects on Banking, Real Estate, Auto, FMCG Industry

One month is gone after the biggest financial reform in the history of India – demonetization was implemented. The move on ban of Rs. 500 & 1000 currency note was appreciated across India especially by urbanites. However rural region is still facing the cash crunch due to poor access to banking and this is estimated to impact various industrial sectors in the coming 2-3 quarters.

Although there are many benefits of reducing cash in the system and increasing the usage of digital money in the long run but the consequences of cash crunch from the system are very difficult to comprehend as the economic growth remains uncertain. But one thing is very clear the no-cash scenario will impact the Indian economy in the near term.

Check out the results of official survey on currency ban.

Let’s understand the effects of currency ban on key industrial sector of India:

Automotive: The 2 & 4 wheeler and commercial sector is expected to get negatively impacted for minimum 2-3 quarters. This is because, in India high share of purchase of motorcycle takes place through pure cash which is nearly (30%-35%) in rural area. In comparison, the demand for small car is less likely to get affected, since people mostly buy 4 wheelers through loans. However as per report published, the number of inquiries have not lowered. Which means the industry will pick up its momentum in the coming months.

Banking and NBFCs: This includes public and private sector banks, NBFCs – consumer finance, consumer vehicle, and mortgage. In the short term, this sector is likely to face slowdown in credit growth in auto, commercial vehicle, loan against property, personal loan, and SME loans.

There will be increase in savings and term deposits in the medium term as a large part of the informal and cash based economy will shift to the banking system for savings and transactions. NBFCs are the oxygen for the small and medium businesses. But due to cash crunch, there could be rise in loan defaults.

Real estate: This industry was already facing difficulties due to poor sale of flats, houses, etc. due to high prices. But post demonetization, things are going to get worsen and it is the worst impacted sector due to the currency ban. Residential real estate demand will slow down as potential buyers especially from the salaried class are very likely to stay away from purchase decisions as they are expecting reduction in real estate prices and most importantly the interest rate charged by the banks. The main reason for the negative impact is the transactions which used to happen in cash has taken a hit. Moreover the sector was not transparent.

Many people’s wealth has taken a hit post demonetization and this has directly affected their future income. This is straight away going to depress the real estate market.

Check latest updates on demonetization.

Construction, building materials and paints: Majority of this sector which directly relies on real estate will suffer as transactions happen through cash only. Since demand for new construction will slow down, it will also impact these sectors.

Consumer products: This includes electronic items such as mobile phone, television, washing machine, etc. Due to low cash flow in the whole system, companies will extend the credit to the distribution chain. Companies are launching various discounts, freebies, waiving off the processing fees in order to woo the customers.

FMCG: Excellent monsoon this year had bought good news to the FMCG sector. However demonetization came as a dampener to this industry. Rural sales had started to pick up after the monsoon. But as rural area majorly relies on cash transactions and wholesale trading, the cash crunch resulted in weaker sales and this is expected to continue for the first two quarters of the next financial year. Sales at wholesalers and local kirana stores has also taken a hit. However as the circulation of money increases FMCG will see sales picking up.

One thing is now very obvious. There will be an impact on each one of us finances and investments. Although there are other external factors mainly the US election result and its impact on the global economy, which might worsen the condition for a short term. However in the long run, Indian economy is definitely going to blossom.

Read more on the lessons to be learnt from demonetization.

Plastic Currency Notes: Features, Benefits, Disadvantages

As per the notification from RBI and government’s decision, Indians will soon see plastic currency notes. This is another big decision after the demonetization (i.e. currency note ban).

What are these notes?

Notes which are made of any form of plastic are called as plastic currency notes.

What type of plastic would be used in India to print the notes?

These notes would be prepared from plastic or polymer substrate.

Benefits over paper currency notes & differences

Difficult to imitate / Security: The most important reason behind the launch of plastic currency note is that it is to prevent counterfeiting i.e. fake currency. Paper notes are easier to imitate and when in wrong hands leads to negative impact on economy. In addition to this, fake paper notes are majorly printed and are in use for funding terrorism, which has since ages affecting India’s internal security. So basically it would help India’s economy in the long run.

In comparison, polymer notes have security features which is not possible in paper notes. These features can be detected by individuals, machines, and authority which issues the notes. Reproducing polymer notes through photocopy or scanning is very difficult.

Long life: Plastic currency notes have longer life typically 5 years. In comparison paper notes may or may not have longer life unless and until they are preserved or kept unused. You can take example of visiting card made of plastic and paper. Plastic ones are difficult to tear and have longer life as dirt can be easily removed. You might have come across a situation when shopkeeper rejects to accept a torn paper currency note. This will end once plastic money comes to use.

Quality: Is much better than paper money.

Environmental impact: Since plastic note lasts longer, the production cost is reduced and environmental impact is much lower as paper is saved.

Read more on effects of currency note ban.

Disadvantages of plastic currency notes:

  • Plastic is harder than paper. So carrying these notes will be difficult. Folding will be also harder.
  • Calibrating the ATM will be expensive initially. However in the long run, the impact on economy would be greater.
  • Printing would be initially costly as material would be imported.
  • Counting by hands is difficult as plastic is more slippery.

How many notes would be first available and of which denomination?

Over 1 billion notes made up of plastic would be first printed of denomination of Rs. 10.

Will these notes be available across India?

No. These notes would be first put on a trial in 5 cities – Jaipur, Shimla, Bhubaneshwar, Mysuru, and Kochi. The possible reason to launch these notes in select cities could be to test them in varying weather conditions. The temperature of these cities is typically cold. In summer or humid places, plastic notes might fade due to temperature and its color and texture may get spoiled and might start limping.

Who would be best benefited from these notes?

Although these notes would benefit every individual, it would benefit certain businesses such as fishing, factories, mining and others where there is lot of dirt and water. In such places, paper notes are easily damaged.

Will it be available in ATM? Once the testing is successful, it is expected that ATMs would be calibrated to dispense such notes.

Who would be printing the plastic notes?

The Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) and the Security Printing and Minting Corporation of India Limited (SPMCIL) would be supplying the notes. Both these organizations are selected by Reserve Bank of India. The procurement of plastic material has already started.

In which countries plastic currency notes are used?

There are around 30 countries across the world where such notes are already in use. Few of them are Australia, Singapore, Indonesia, the UK Malaysia and Canada.

Are plastic notes environment friendly?

Yes. The printing consumes less energy and assures being efficient in reducing global warming.

Demonetisation Survey Results: 90% Brilliant, 73% 5 Star Rating & more

Currency note ban is in it’s third week. And there have been mostly positive reviews across India on the demonetization via social media, websites, videos and other channels. Government wanted to conduct survey to get views from the people of India on banning Rs. 500 & 1000 notes. For this, survey was started on 22 November 2016 via app. People can share their personal opinion freely and not rely on any other sources such as news channels, politicians and other who are against the move right from day-1 of implementation of the ban.

As on 23 November, over 5 lakh people have participated in the survey i.e. in 24 hours. Here’s the snapshot showing the survey result as released officially by the government.

Demonetization Survey Statistics

How to Participate in the Demonetisation Survey: Contribution of views can be done only via the official PM app as follows:

First you need to get the official app named “Narendra Modi“. App is completely free and less than 6MB in size. This can be done via following 4 ways:

  1. Download the app from Google Play Store, App Store, Windows Store. Click on the links.
  2. By giving a missed call on 1800 20 90 920 to download the app
  3. Enter your mobile number on the webpage: http://www.narendramodi.in/downloadapp 
  4. Scan the QR code on the above webpage

For those who already have the app: 

Open the app. Register or Log-in using the credentials.

Click on Share Your Opinion

Select Language – Hindi / English and click OK

Questionnaire in the survey: There are total 9 questions as follows in the demonetisation survey.

Do you think that black money exists in India – Select Yes or No.

Do you think the evil of corruption and black money needs to be fought and eliminated? Select Yes or No.

Overall, what do you think about the Government’s moves to tackle black money? – Move your finger along the wheel. Ratings available are Brilliant, Nice, It’s Okay, Could Improve, Bad Experience.

Read more on lessons to be learnt by every Indian from the currency note ban.

What do you think of the Modi Govt’s efforts against corruption so far? Rate either – Very Poor, Poor, Don’t Know, Good, Very Good.

What do you think of the Modi Govt’s move of banning old Rs 500 & 1000 notes? – Move your finger along the wheel. Ratings available are Brilliant, Nice, It’s Okay, Could Improve, Bad Experience.

India is all set to start printing plastic currency notes. Read more.

Do you think demonetisation will help in curbing black money, corruption & terrorism? Rate either – I will have an immediate impact, There will be impact in medium to long term, Minimal Impact, Don’t know.

Demonetisation will bring real estate, higher education, healthcare in common man’s reach – Select from Completely Agree, Partially Agree, Can’t Say.

Check out impact of currency ban on Indian economy.

Did you mind the inconvenience faced in our fight to curb corruption, black money, terrorism and counterfeiting of currency? – Select from Not at all, Somewhat, but it was worth it, Yes.

Do you believe some anti-corruption activists are actually fighting in support of black money, corruption & terrorism? – Select from Yes or No.

Check out latest update on demonetisation.

Do you have any suggestions, ideas or insights you would like to share with PM Narendra Modi? – Share anything you feel. Once you submit, thank you message will be displayed. You will be also asked to inspire your family and friends to do the same by sharing the survey via Facebook, Google Plus and Twitter.