Reintroduction of Rs 1,000 note not necessary: Prof Dholakia -Governance Now

Reintroduction of Rs 1,000 note not necessary: Prof Dholakia

The jury is out on whether introducing new currency notes is logical

Praggya Guptaa | November 22, 2016 | New Delhi

#IIM Amhedabad #scrapped currency #Demonetisation

“It is not necessary to have re-introduction of Rs 1,000 when there is already a Rs 2,000 rupee and Rs 500 rupee new note. There is no as such compelling reason but as far as it is logical or not, it is difficult to say right here,” said Ravindra H Dholakia, professor, IIM Ahmedabad and member, Monetary Policy Committee.

Talking to Governance Now at 44th annual convention of Institute of Company Secretaries in Ahmedabad, Dholakia said that introducing new currency notes is legal but whether it is logical or not is a matter of opinion.

Saurabh Soparkar, senior advocate, Gujarat high court said that in any case it is a very complex issue and added that normally the theory is bad money will drive out and good money is going to be here. Unless there are attempts to bring in bad money again, the significant part of the good money will prevail in economy.

Soparkar expects that following demonetization, there is bound to be better growth rate. The tax base will increase.

Gaur Gopal Das from ISKCON Mumbai said that for sustainability, there is a need for external and internal change. The government has applied external force, but to stop further accumulation of black money, it should come from within, otherwise people will look for other channels to accrue black money.

Comments

Other News

`Development must be judged beyond GDP, with rights and justice at core`

Delivering the IXth Chief Justice M.C. Chagla Memorial Lecture on ‘Human Rights and Sustainable Development Goals’, in Mumbai Friday, former Chief Justice of India Bhushan R. Gavai questioned whether conventional economic indicators such as gross domestic product (GDP), national income,

RTI exposes Rs 16,909 crore cost blowout on Mumbai-Goa Highway

Seventeen years after the centre first approved the widening of National Highway 66 between Mumbai and Goa into a four-lane highway, a fresh RTI reply has revealed a sharp escalation in the project`s sanctioned cost. According to the RTI reply obtained by activist Jeetendra

"India`s semiconductor ecosystem is expanding rapidly"

Prime minister Narendra Modi on Thursday inaugurated SEMICON India 2026 in New Delhi. Addressing the occasion and highlighting the significance of the event`s fifth edition, the PM drew a parallel between the launch of Semicon India and Vishwakarma Diwas. He pointed out the beautiful coincidence of

Cabinet approves raising EPFO wage ceiling from Rs.15,000 p.m. to Rs.25,000

The union cabinet, chaired by the prime minister, has approved the proposal of the Ministry of Labour & Employment to enhance the wage ceiling for mandatory coverage under the Employees’ Provident Fund Organisation (EPFO) from Rs.15,000 to Rs.25,000 per month. The decision is expected to bring

UPI continues to remain free for peer-to-peer transactions: Finance Ministry

The new UPI framework introduced has no impact on any person to person transactions, and UPI will continue to remain completely free for all person-to-person transactions, irrespective of the amount transferred, the finance ministry clarified on Tuesday. Payments to merchan

SEMICON India 2026 and the making of a chip powerhouse

On Thursday, prime minister Narendra Modi will inaugurate SEMICON India 2026 at Yashobhoomi in Dwarka, New Delhi. Global chipmakers, policymakers and investors will fill the halls, all watching an industry India has built from the ground up. For three days, the country`s semi-con (semiconductor) manufact