Digital Transaction is the only way to Root Out Black Money

The withdrawal of 2000 currency notes did not cause any ripple in the country. As a matter of fact, for nearly three years, it has not been in circulation because of it being inconvenient for people. The general public has been well aware of its imminent ban or withdrawal sooner or later. So, only those who were engaged in the hoarding of black money business would have felt the shock. That is why, when the people watch wads of 2000 currency notes concealed by the hoarders in the boxes or cupboards, they get stunned. According to reports over six lakh notes of Rs 2000 were printed by the RBI way back in 2016 and if they are not much in public circulation, it shows that most of those notes must have been hoarded as black money. This step of withdrawal would certainly bring them to the surface and thereby substantially reduce the accumulation of black money.

The second most important reason for the no effect of Rs 2000 currency notes is the extreme popularity of digital modes of payment in the last six-seven years. As of today, even very small traders, vegetable vendors, and tea or pan shop owners gladly accept payment through UPI, Payphone or Paytm. Cash transactions have become very limited. Big cash dealings are mostly done by Tax evaders. Needless to say, the human interface in money dealings is the root cause of corruption. This can be rooted out only by the extensive use of technology. Bribery will be controlled to a large extent with the help of AI.

Therefore, except for the corrupt politicians, officers and unscrupulous businesspersons, the rest of the people in the country are unaffected by the withdrawal of Rs 2000 currency notes. Thus, it will be in the fitness of cleanliness drive to remove black money that the Reserve Bank of India should discourage cash transactions and incentivise digital ones. In fact, replacements of notes and coins have been going on from time immemorial to safeguard the economy.

It is said that the demonetisation of Rs 500 and 1000 in 2016 by the Modi government had also broken the back of Pakistan‘s economy. There were many modern printing presses in Pakistan, which were thriving and churning out fake notes of Rs 500 and 1000 of Indian currency but with the demonetisation, the Pakistani economy got bust. And today it is for everyone to see that devastated Pakistan is going everywhere with the begging bowl.

Demonetisation and remonetisation have undoubtedly brought positive results for the economy, but lasting results can be expected only when the economy is transformed to be cashless and digital.