Impact of Demonetization on Indian Economy

On November 8, when the whole world was waiting for the outcome of US presidential elections, Prime Minister Narendra Modi plays his master stroke by announcing demonetization of Rs.500 and Rs.1000 notes to restrain corruption, counterfeit currency, terrorism and black money.

The term demonetization is not new in India. The highest denomination note was of Rs 10,000 which was printed in 1938 and again in 1954 by the Reserve Bank of India and demonetized in January 1946 and again in January 1978 to curb the illegal use of high denomination currency which was used for corrupt deals in the country. Such demonetization did not have a big impact on the Indian economy since less than 5 percent of population in India had access to such notes and most banks never had such currency notes.

However, with the current demonetization, the common public and bankers are undoubtedly facing hardship since more than 85 percent of currency in circulation has been rendered illegal in one single stroke. Demonetization is surely encumbering the current economy and will continue to do so in the near term and will also impact India’s growth for the coming two quarters but will have positive long lasting effects.

One of the biggest benefits of demonetization is that it is going to drastically affect the corrupt practices. People having black money in cash will not be able to exchange much as they would be in a fear of getting penalised and prosecuted by the authorities. Enemies of our country which are involved in counterfeit currency and terrorism will not be able to continue it further for quite some time at least. Usually, black income is kept in the form of physical assets like gold, land, buildings etc. and only a small portion of black money is actually stored in the form of cash. Hence the amount of black money countered by demonetization depends upon the amount of black money held in the form of cash and it will be smaller than expected. But more than anything else, demonetization has a big propaganda effect. People are now very much convinced about the need to fight black income and such a nationwide awareness and urge will encourage government to come out with even strong measures.

Bank deposit in the short term may rise, but in the long term, its effect will come down. The savings with the banks are actually liquid cash people have stored and it is difficult to assume that such ready cash will be put into savings for a long term. They saved this money into banks to convert the old notes into new notes. These are not voluntary savings aimed to get interest. It will be converted into active liquidity by the people who save only when full-fledged new currency supply takes place. This means that new savings with banks is only short-term deposit. It is not essential that demonetization will produce big savings in the banking system in the medium term. Most of the savings are obtained by public sector banks which may reduce interest rate in the short/medium term. But they can't follow it in the long term. 

Prior to demonetization, India was an incredibly cash-centric economy. 95%of transactions were conducted through cash, 90% of vendors didn’t have card readers or the means of accepting electronic payments, 85% of workers were paid in cash, and almost half of the population didn’t even have bank accounts. After demonetization, cash transactions have reduced considerably and this move has proven to be a catalyst for consumption to be digitally driven and payments to go cashless. It is pleasing to see, since the demonetization drive, the number of smaller merchants such as tea stalls, grocery stores as well as consumers in rural and smaller cities embracing digital payments through mobile wallets, bank point-of-sale machines etc. But in order to make digital payments pervasive and sustainable, India not only needs to focus on continuing to roll out digital infrastructure, but also proactively educate its citizens on the long-term benefits of digital transactions.

Dr. Ashok Sharma

Associate Professor

Dept. of Management Studies

Virtualization

In computing, virtualization means to craft a virtual version of a device or resource, such as a server, storage device, network or even an operating system where the structure divides the resource into one or more execution environs. Even something as simple as segregating a hard drive is measured virtualization because you take one drive and partition it to generate two separate hard drives. Devices, applications and human users are able to interact with the virtual resource as if it were a real single logical resource. The term virtualization has become somewhat of a buzzword, and as a result the term is now associated with a number of computing technologies including the following:

• Storage virtualization
• OS virtualization
• network virtualization

Storage Virtualization

The management of storage and data is becoming challenging and time overshadowing. Storage virtualization is the process of grouping the physical storage from multiple network storage devices so that it appears like a sole storage device.

The process involves abstracting and covering the internal functions of a storage device from the host application, host servers or a general network in order to ease the application and network-independent management of storage.

Storage virtualization is also well-known as cloud storage.

Storage virtualization can be instigated by using software applications or appliances. There are three important reasons to implement storage virtualization:

1. Improved storage management in a heterogeneous IT environment
2. Better availability and estimation of down time with automated management
3. Better storage utilization

Operating System Virtualization

Operating system virtualization (OS virtualization) is a server virtualization technology that comprises adapting a standard operating system so that it can run diverse applications controlled by multiple users on a single computer at a time. The operating systems do not obstruct with each other even though they are on the similar computer.

Operating system virtualization delivers application-transparent virtualization to users by decoupling applications from the OS. The OS virtualization technique offers granulated control at the application level by enabling the transparent migration of discrete applications. The finer granularity migration offers superior flexibility, ensuing in reduced overhead. 

OS virtualization can also be used for migrating critical applications to another running operating system instance. Patches and updates to the underlying operating system are done in a timely way, and have slight or no effect on the accessibility of application services. The processes in the OS virtualized environment are secluded and their interactions with the underlying OS instance are supervised.

Network Virtualization

Network virtualization denotes to the management and monitoring of a complete computer network as a sole administrative entity from a single software-based administrator’s console. Network virtualization also may comprise storage virtualization, which includes managing all storage as an only resource. Network virtualization is intended to permit network optimization of data transfer rates, scalability, flexibility, security and reliability. It mechanises many network administrative tasks, which actually camouflage a network's true complexity. All network servers and services are measured one pool of resources, which may be used without concern to the physical components.

Network virtualization is especially convenient for networks undergoing a rapid, large and unpredictable surge in usage.

The intended result of network virtualization is improved network productivity and efficiency, as well as job satisfaction for the network administrator.

 Ms. Garima Verma

Assistant Professor

Dept. of Information Technology

DEMONETIZATION

Introduction

The past few weeks have witnessed a sea of changes in the lives of Indians. Going towards paperless transactions using credit/debit cards to the ‘barter of goodwill’ in the rural areas, demonetization has brought about major readjustments in the socio-economic fabric of the country. According to RBI figures, as of March 2016, currency in circulation amounted to Rs 16,145 billion.Of this, Rs 500 notes accounted for 47.8 % in value and Rs 1,000 notes another 38.6 %

World

Demonetization has earlier been adopted in various quarters of the world. In 1969, US demonetized$ 1,000 and $ 10,000 bills, keeping only $ 100 as legal tender.In 1991,Russia went in for demonetization, which caused widespread inflation.In 1996, Australia earned the distinction of the first country to have a full series of circulating polymer bank notes after replacing all paper based notes. This was aimed at putting an end to widespread counterfeiting in addition to being long lasting.

In India

RBI first demonetized Rs.1, 000 and Rs.10, 000 banknotes in Jan 1946. The aim was to nab businessmen who had made huge profits during world wars but did not disclose their income to the taxmen.In 1978, high denomination bank note (demonetization) Act, once again demonetized Rs.1, 000, Rs.5, 000 and Rs. 10,000 notes.

Present scenario

The old Rs 500 and Rs 1,000 notes are no longer legal tender.Other currency notes: Rs 100, Rs 50, Rs 20 & Rs 10 would remain valid as would all coins. In addition, all cashless transactions such as cheques, cards and demand drafts would continue as usual. The new series of notes are Braille compliant.

Objectives

The Government has attempted to tackle all three issues affecting the economy, i. e. parallel economy, counterfeit currency in circulation and terror financing.

Experts opine that it would had to a lower budget deficit, lower interest rates, should, all other factors remaining constant, produce a stimulus to the economy.

Reducing the base money supply would lower inflation.

No limits being imposed on amount of cash deposited in bank accounts, the cash would be subject to tax scrutiny.This has brought down the interest rates. Following suit, in a short period of time , according to SBI Chairperson, Ms. Arundhati Bhattacharya, “lending rates are expected to lower down, possibly giving a sluggish credit expansion a much needed boost and thereby promoting growth.”

According to are port by Crisil, a global S & P company, the “move could change the face of the Indian economy, improve the Government’s fiscal position and tax compliance. The size of the cash economy will shrink, as well as back money generation avenues because of better cash flow trails”.

The Road Ahead

Perhaps the current move is the greatest boost towards a digital India.It calls for renewed efforts on multiple fronts. The move has to be augmented by the following programmes in order to ensure that the anticipated benefits are realized:

      ·         Literacy programmes

      ·         Power transmission

      ·         Internet Access

      ·         Development of alternate/renewable source of energy

      ·         E- market place especially in rural areas

Conclusion

There will be vested interests looking for their short term gains; this fact being as old as mankind itself. In spite of the odds, generation have progressed and taken giant steps in to the realms of science and technology into an unimaginable future.

 Ms. Suchitra Srivasatava

Associate Professor

Dept. of Management Studies

Scope of “The Voice” in Media Industry

If we think of some 20-25 years ago, having a good voice and command over your language would lead you to either become a struggling singer or receiving an appreciation like “ Acchi aawaz hai”. But today a good voice has gained a good no. of field to make its place. Its now not only limited to be a singer or news reader, but also careers in Anchoring, Commentary, Emcee and RJ has opened up the doors for a good voice.

With the development in the living standard of people, development in the Event management industry has seen a good phase. And along with that Anchoring & Emceeing has become a professional work.

Today people are not only information oriented but also entertainment seekers. They want to get connected with the program they are watching. And an Anchor is indeed a bridge between the program and the audience.

In this competitive era, where everyone is so busy with their work that they hardly get time to enjoy their life, live programs have become an escaping factor for all of them. These live programs not only entertain the public but also bring them out of the daily hectic schedules. And Anchoring is one of the most important elements of success of such programs.

Imagine you have gone for an award function, where you don’t even realize and the program gets started. One by one you are witnessing different programs but without any description. You just watch programs and  people receiving awards. You don’t even know that for what work they are being awarded. How boring and unmanaged program this will be, you can definitely understand.

Now the other situation comes, when an Emcee, systematically welcomes you, and one by one introduces you to the upcoming program and with all respect and honor announces the names of all awardees one by one, in spite of just sitting, you will be definitely clapping in every next second and will be definitely enjoying the program. This is because the Emcee has connected you to the happening with his words.

Now the fact is that not every person can become a good anchor is actually to be pondered. If just giving the information for making a connect between the audience and program is the work of an anchor then how can we say that not every person can become a good anchor? This is because a good anchor not only reads the information, but also conveys it with full emotions and expressions. He not only reads it as a script but also speaks it as he is conversing with the other person. Along with his words, his body language, his gestures and postures create an ambience of the program.

Now let me suggest you the ways to be a presentable Anchor on the stage.

  Ø  Be thorough with the whole script.

  Ø  Don’t only cram it but also understand its meaning so that you can very well explain it to the audience.

  Ø  Always keep an eye contact with the audience to make them feel the connection between both of you.

  Ø  According to the audience and type of your event, keep your voice tone. For example: for rock concert, keep your voice heavy and cherishing but in case of Government programs or corporate programs keep you voice tone low, soothing and delicate.

  Ø  Be well content with extra literature like jokes, poems, proverbs, etc. which you will need as fillers.

  Ø  If you have the co-anchor with you, establish a good coordination with him and be ready with 2-3 rehearsals with him.

  Ø  And the most important is “BE CHEERFUL AND SMILING” always.

Apart from being very active on the stage, an Anchor should be very interactive and active off the stage too, because an Anchor is the only common link between the event and its audience.

It is very well said that, “Life’s storm proves strength of an Anchor, similarly Event’s spontaneous requirements prove the need and importance of an Anchor or Emcee”.

For every person willing to be an Anchor, Emcee, Commentator or RJ, I would like to end with a simple statement, “Speak in such a way that others love to listen to you, and listen in such a way that others love to speak to you.”

 Ms. Himani Joshi

Assistant Professor

Dept. of Communication Studies

Finding the Real Jonathan Livingston Seagull

Jonathan Livingston Seagull is one of the most inspiring stories of the modern times. The Author, Richard Bach has beautifully portrayed the flight of the seagull, its challenges and opportunities.

But the question is who is the Real Jonathan Livingston Seagull and what does it represent?

The real Jonathan Seagull is the innate child, in each one of us, this child is bubbling with energy, is adventurous and wants to explore the universe.

But in today’s world this Jonathan is caught in the rat race in the search for money, name and status, which are the superficial norms as dictated by the society.

All our life that is what we are caught in and still unable to fulfill the endless desires. And in doing that we lose the Real Jonathan somewhere.

So the challenge is to find the Real Jonathan and to do what we really want to do in life not what the society pressurizes us to do because that is where our heart is and if we really do what our passion is then our life will be more fulfilling and joyous and if we are happy then we can spread some happiness around, but the fact of the matter is that inwardly we are not happy and that is the reason that there is so much pain in the world.

So I urge you to kindly take out sometime for yourself, relax, find out your passion and then give it your hundred percent, and begin adding value to yourself and consequently to the world.

And that is living a life like Jonathan Livingston Seagull!

Mr. Vipul Singh

Assistant Professor

Dept. of Management Studies

Flipped Class – EducationNextGen

The traditional way of teaching in the classroom is the conventional one where teachers (instructors) used to follow blackboard which is now being moreover replaced by power point presentations, audio-visual materials. Now a days even teachers are using freely available internet resources to conduct their classes. Flipping a class is the concept of inverting the traditional approach of learning and application of learning. The following activities generally involved while creating a flipped class:

• Providing study material to students (preferably video lectures created by instructors)
• Students prepare themselves to participate in the class activities before attending class.
• During the class time, instructors guide all the students to involve actively and interactively apply that knowledge along with clarification of doubts.
• After the class, students check their understanding and extend their learning.

Using this approach, an instructor can play a vital role of guiding students to think about a problem deeply and apply their learning at higher level. The main idea behind the flipped classroom is to create interactive learning environment where each and every student along with the instructor participate to apply the concept and engage themselves creatively in the concept. There is no one model for this though we can have the following framework

 

Figure : Flipped Classroom Framework

In the above framework, Flipped classroom technique is used alongwith educational technology and learning through activities like PI(Peer Instruction) and TPS(Think-Pair-Share) in the class room which creates a better and influenced learning environment.

Some of the benefits of the flipping a classroom are as below:

• The idea of flipped classroom involves more engagement of students than a traditional classroom so it keeps a student more engaged.
• This model uses the point of view how a student can learn best and apply the knowledge during hands on activities during class through activity learning. Instructor can provide immediate feedback to the students that helps to improve their learning.
• As we all know, students do not learn at the same pace which is a difficult factor in teaching to deal with. The idea of flipping a class gives an instructor more ways to interact and work with the students directly which also gives a clear idea to the instructor about various learning styles of students, so they can give instructions accordingly.
• Students can learn and work at their own pace.

Some of the useful tools for the flipped classroom are:

• Camtesia
• Wikispaces
• Edmodo
• Moodle
• Poll Everywhere

One point to note that as a instructor, flipping our classroom means a lot. We need to completely re-think how to do the job we have done in certain ways for so many years. This may be the case why would any instructor bother?

Flipping a classroom is not easy as it involves many steps which requires planning, creating short video lectures, Peer Instructional activities etc. along with the use of many online resources. It may not be for every educator because of having lot of extra work. But enough of the educators that have tried flipped classroom are having success. Finally, I request all educators to try atleast once in the forthcoming semester. 

Mr. Deepak Sharma

Assistant Professor

Dept. of Information Technology