Reducing Black Money : The Grand Strategy ?
Today’s Hindustan Times reports :
- RBI stopped printing Rs 2,000 notes about 5 months ago
- It is unlikely to print more 2000 rupee notes in the current financial year
- Total Rs 2000 notes printed so far = Rs 4 trillion ( 3.7 billion pieces )
- Rs 1000 notes withdrawn = Rs 3 trillion ( 6.3 billion pieces )
- New Rs 500 notes printed so far = Rs 7 trillion ( 14 billion pieces )
- Old Rs 500 notes withdrawn = Rs 85 trillion ( 15.7 billion pieces )
- Currency in circulation = Rs 22 trillion(86 % of “ before Demo “)
- Rs 200 notes under printing to come into circulation in Aug
- Initially , about 1 BILLION pieces of Rs 200 notes will get released
The ostensible reason being advanced for the introduction of Rs 200 notes is :
It will make life easy for citizens who badly need a currency note smaller than Rs 500 , for their day to day expenses ( so true ! )
Could it also be that , the Government plans to gradually WITHDRAW from circulation , Rs 2000 notes ?
Thereby making difficult , large scale transactions in CASH , involving Rs 2000 notes ( – obviously , BLACK MONEY transactions ) ?
You need to carry only ONE KG worth Rs 2000 notes for a transaction of Rs 20 lakh
But same amount in Rs 200 notes , will require to lug 10 KG ! Not very inconspicuous !
If so , this step is very welcome
But that GRAND STRATEGY will remain incomplete without introduction of ULTRA NEW notes of Rs 2000 , made out of plastic and embedded with RFID chips , as suggested by me in :
Embrace the Inevitable [ 13 Nov 2016 ]
And with RFID chip embedded , there will be no need for :
- Top Secret / sudden / surprise announcement
- A small 50 day window for exchange
In my plan , both ( old and the new notes of Rs 2000 ) , can continue to be legal tenders , with ONE YEAR overlap !
26 July 2017
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