There are multiple views on Demonetization and its after effects. But one thing is true. Demonetization has brought out the big benefits of Savings amongst public. The public hard earned money were put in financial products rather than the physical assets.
One would be surprised to note that what incentives, advertisements, enticements which gave higher returns could not do for over decades, could be achieved through Demonetization.
The main features could be put in a nutshell as under:
- The RBI data shows that gross financial savings has risen to 11.8 per cent of the gross national disposable income (GNDI) in fiscal year 2017, thus showing a rise of 90 basis points from 10.9 per cent in the corresponding previous year.
- The financial savings has been possible due to increased bank deposits.
- The period of 50 days given to the public has made magic in increasing the public savings potential.