The Center for Monitoring Indian Economy (CMIE) has estimated the transaction cost of demonetisation during the 50-day window till December 30, 2016 to be around Rs.1.28 lakh crore.
Enterprises are estimated to lose around Rs. 61,500 crore in the transition due to loss of business.
Wage levels of bankers are higher than that of an average person in the queue, CMIE says, and hence, banks are estimated to lose around Rs. 35,100 crore.
Further, the transaction of cost for government and Reserve Bank of India would be around Rs. 16,800 crore. This amount will go for printing of new currency, transportation to bank branches, ATMs and post offices.
Household members, who are standing in the serpentine queues to get the new currency, would lose around Rs. 15,000 crore due to foregone wages during the 50-day period, CMIE projects.
The government told the Supreme Court that it expects to unearth about Rs. 4 lakh crore of unaccounted cash. Unaccounted cash worth at least the transaction cost should be found to claim that the exercise was worth the effort, CMIE says. If the government succeeds in bringing even Rs. 4 lakh crore, then the transaction cost of this exercise would be about 26 per cent of that amount.
Urban Unemployment Shoots Up; Rural Unemployment Declines
Urban unemployment rate (30-day running average), which was dipping, saw a spike from November 9 onwards, the day after demonetisation was announced.
Rural unemployment rate continued to decline
Data source: Centre for Monitoring Indian Economy
Published - November 28, 2016 09:31 pm IST
