Recall India's demonetisation when it banned 500 and 1,000 rupee bank-notes?
A report now declares that the plan did not work.
The RBI report says that illegal notes worth 15.28tn rupees ($242bn) had been deposited in banks up to 30 June. This basically means that almost 99% of the "demonetised" money was deposited into banks and wasn't really destroyed. So all that undeclared black-market money which was supposed made worthless was recompensed by the process. Black money was essentially money that has been earned but on which taxes haven't been paid. The hope was that black money held in the form of cash wouldn't be deposited into banks, given that people holding it wouldn't want to be identified - in the process, a vast amount of illegal money would be destroyed. But the RBI report tells a different story.
All the hardship Indian's faced was unnecessary and pointless. The rural economy and property - which rely largely on cash transactions - were sectors hit by the ban. It also contributed to a slowdown in economic growth.
India's attempt to flush out undeclared wealth did not work.
Only the World Socialist Party (India) can end undeserved unearned wealth
A report now declares that the plan did not work.
The RBI report says that illegal notes worth 15.28tn rupees ($242bn) had been deposited in banks up to 30 June. This basically means that almost 99% of the "demonetised" money was deposited into banks and wasn't really destroyed. So all that undeclared black-market money which was supposed made worthless was recompensed by the process. Black money was essentially money that has been earned but on which taxes haven't been paid. The hope was that black money held in the form of cash wouldn't be deposited into banks, given that people holding it wouldn't want to be identified - in the process, a vast amount of illegal money would be destroyed. But the RBI report tells a different story.
All the hardship Indian's faced was unnecessary and pointless. The rural economy and property - which rely largely on cash transactions - were sectors hit by the ban. It also contributed to a slowdown in economic growth.India's attempt to flush out undeclared wealth did not work.
Only the World Socialist Party (India) can end undeserved unearned wealth
If you wish to see a genuine money-free world contact:
The World Socialist Party (India)
257 Baghajatin ‘E’ Block (East), Kolkata 700086,
Tel: 2425-0208,
E-mail: wspindia@hotmail.com
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