Economic slowdown was the biggest negative impact of demonetisation: Survey

Around 32% of respondents believe note ban caused loss of earnings for many unorganised sector workers

Around one-third of people surveyed think economic slowdown was the biggest negative impact of demonetisation, while 28 per cent said it had no negative effects at all, according to a report.

Around 32 per cent of respondents believe note ban caused loss of earnings for many unorganised sector workers, as per the survey conducted by online community platform LocalCircles. The survey, with a sample size of about 50,000 respondents from across India, came on the eve of the third anniversary of demonetisation.

Regarding the top benefit of demonetisation, 42 per cent said it brought a large number of evaders in the tax net, while 25 per cent felt the move had no benefits at all. Around 21 per cent respondents said note ban has reduced black money in the economy and 12 per cent said it increased direct tax collections.

The government had on November 8, 2016 announced ban on old 500 and 1,000 rupee notes to curb black money in the system. Of the Rs 15.41 trillion worth Rs 500 and Rs 1,000 notes in circulation on November 8, 2016, 99.3 per cent or notes worth Rs 15.31 trillion returned to the banking system. Just Rs 10,720 crore of the junked currency did not return to the banking system.

After the note ban, old junked notes were allowed to be deposited in banks, with unusual deposits coming under income tax scrutiny.