Why Modi's bold move on black money may not eliminate black money

Demonetisation of high-denomination notes to tackle existing black money, but not future generation

The government move to demonetise old currency notes with denominations of Rs 500 and Rs 1,000 is one of the boldest steps taken by the Narendra Modi government. It comes in less than two months of the Income Disclosure Scheme 2016, where people were given an opportunity to declare their unaccounted income and come clean after paying a higher rate of tax on the amount disclosed. There seems to be a strategy and plan at work to tackle the black money menace.

However, it is debatable if the move would eliminate the generation of black money.

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