Reducing  Black  Money :  The  Grand  Strategy  ?

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  • Rs 1000 notes withdrawn =  Rs  3 trillion  (  6.3 billion pieces  )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  • Old Rs 500 notes withdrawn =  Rs  85 trillion ( 15.7 billion pieces )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  ]

 

https://myblogepage.blogspot.in/2016/11/embrace-inevitable.html

 

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

www.hemenparekh.in / blogs

 

 

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