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by DaiPlusPlus 3461 days ago
I believe the aim was not to repatriate cash, but to help tackle corruption in India, which is endemic, and often takes the form of literally under-the-table cash payments to public and local officials, policemen, and the like. By eliminating high-value cash it means these illegal transactions become less practical: illegal participants must either use larger amounts of less-valuable currency (passing bricks of notes isn't exactly subtle) or use foreign currency (harder to launder). The hope is that people would find it easier just to keep things above-board because all transactions become electronic, logged, and auditable.

Though I'm sure some enterprising folks will find way to electronically launder bribe money somehow - I expect a lot of people to suddenly inherit money from long-lost foreign relatives.
3 comments
_nedR 3461 days ago
How many government employees were arrested since Modi took over? Don't see the corruption angle. The measure was primarily to improve governments tax receipts and to eliminate the cash economy (thereby increasing governments control over the economy).

Right now it seems that every measure seems to be to increase governments control over the masses and to reduce their corruption, without any measure to increase governments transparency or reduce government's corruption. Trickle down economics and trickle up anti-corruption measures.

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entropyneur 3461 days ago
High value cash wasn't eliminated. In fact, quite the opposite: previously the highest value note was Rs1000, now it's Rs2000. Although calling $30 high value is a bit of stretch.
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brianwawok 3461 days ago
Average salary in India is RS18k.. so RS2k is 1/9th of that.

US average salary is ~50k.. so it would be equivalent with a $6,250 note.. which to me sure seems like a high value note.

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vram22 3461 days ago
>(passing bricks of notes isn't exactly subtle)

But is plenty done out here - not just bricks, even suitcases. There are even slang terms for it in movies (taken from real life, like khoka - "suitcase" - meaning a crore or so, but I'm not a big movie watcher, so not sure of the exact terms ... :)

Again, movies, and probably real-life stings, though I don't have links to show.

See my reply to wyager.

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