RBI's dexterous decision to withdraw currency prior to 2005 will it work against black money?

I feel this decision can really help in reducing the margin of black money by at least 10% to 15%. However we cannot expect the entire black money to go out of the system but a sizeable chunk will. What's your take on this?

Replies

  • Kaustubh Katdare
    Kaustubh Katdare
    Are you aware of the currency fraud that's haunting all the major banks in India? I hope the news channels will divert their attention from AAP.
  • Chinmay Joshi
    Chinmay Joshi
    It will definitely help in reducing the black money but on the other hand, what i think is it will definitely affect the inflation rate as well.. As new notes will have to printed..
  • Anoop Kumar
    Anoop Kumar
    No, it will not help in black money. Big fishes don't keep cash and most of them just flow them in elections and under table and then again renew them.
    But this will help to in reducing fake currency. RBI chief already cleared that in next years India going to have plastic notes which might completely remove the fake currency.

    Black money can't be controlled without controlling corruption first.
  • Ankita Katdare
    Ankita Katdare
    Anoop Kumar
    RBI chief already cleared that in next years India going to have plastic notes which might completely remove the fake currency.
    This looks like a good move.
    From what I am reading, they are saying that soon all high value notes will be replaced every two years with totally new designs. So, does that mean people who hoard money should spend now quickly? 😁
  • ISHAN TOPRE
    ISHAN TOPRE
    @all: Let us do a thought experiment. Say I have 100 crore black money with me stored in the form of cash notes prior to year 2005 AD. So according to RBI move, I have to replace it with new notes.

    So, I will simply open accounts in various Co-operative banks./ credit societies. I will buy their 1 share worth around rs 100. This is done to avoid showing my account to income tax.

    Next I will deposit 100 crore in small chunks of 10 lakh (old notes). and with draw it by new notes.

    So there will be no IT raid on me.
    because 1. I have legally purchased their shares.
    2. Even if they show my account to IT, It will only mean that, I have no money in my account as I withdrawn the money deposited.

    There are many ways to protect black money. If one is intended on doing it.
  • Chirayu Samarth
    Chirayu Samarth
    Black money can never be fully erradicated from the country. But, it will surely reduce the use of black money.

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