BJP win in UP to trigger war on cash; banks to benefit: BofA-ML

The crackdown could entail more transaction disclosure, raise tax on cash, restrict cash holdings

Bharatiya Janata Party's (BJP's) landslide victory in the key state of Uttar Pradesh (UP) is likely to intensify the government's war against black money / cash, suggests the latest Bank of America-Merrill Lynch (BofA-ML) equity strategy report co-authored by Sanjay Mookim and Anand Kumar.

The crackdown, the report suggests, could entail more transaction disclosure, increased tax on cash, restrict cash holdings (remaining un-implemented proposal of SIT on black money).

This war on cash, BofA-ML feels, will be beneficial for banks as it would result in more financial inclusion, more fees and potential lending. Better reporting can allow private banks to compete with