Demonetisation move may fail to win the war against black money
Only 28%-32% of Indians have access to financial institutions, including post offices and banks. Further, 33% of the 138,626 bank branches are in 60 Tier-1 and Tier-2 cities, leaving rural India at a huge disadvantage.
Anumeha Yadav: Will demonetisation help the move to a cashless economy?
With its announcement that it was withdrawing Rs 500 and Rs 1,000 notes from Thursday midnight, the government rendered almost 86% of the current cash in circulation illegal tender. As people deal with the difficulty of transacting in cash in the next few days, there is expected to be an increase in electronic payments – through cards, micro-ATMs, pre-paid mobile wallets, payment banks and United Payment Interface. Finance Minister Arun Jaitley reiterated this when he said the demonetisation decision was aimed at making India “a cashless economy”, which may potentially expand the tax base and reduce the costs of printing currency.