Demonetization Impact — Prelims Strategy

Prelims Strategy

Identify the object of each statement: specified old notes, replacement currency, deposits or wealth. Withdrawal of legal-tender status from particular notes is not the cancellation of every bank balance. A statement can use the correct date while describing the wrong monetary object.

For the returned-note figure, ask what the statistic records. ₹15,310.73 billion measures notes returned after verification, not the amount confiscated or the value of convictions. A banking trail can support later investigation without predetermining its result.

Keep physical-cash access separate from banking-system liquidity. Deposits can rise while households or firms face difficulty obtaining notes in the desired place or denomination. A question presenting both observations is not necessarily contradictory.

For payment data, distinguish an immediate surge from a persistent level change and distinguish either from a causal estimate. If a comparison extends into 2017, consider whether GST and other changes also affect interpretation. Chronological sequence alone is insufficient to attribute the whole change to demonetisation.