The government of India is now asking its citizenry to participate in the war on cash.
Indian Prime Minister Narendra Modi urged the people on Sunday to use less cash, rely more on digital transactions, fight against money on the black market and combat corruption. These remarks come after he banned the nation’s two largest banknote denominations, which accounted for roughly 80 percent of the cash in circulation: 500 rupees ($7.50) and 1000 rupees ($15).
“You can’t imagine how you can serve the country in this way and become a brave soldier in the fight against black money and corruption,” said Modi on his weekly program “Mann Ki Baat.”
Modi encouraged Indians to make digital payments in their day-to-day transactions, whether it is for buying medicine or paying for train tickets. He noted that a growing number of people are taking advantage of the digital payment initiative, known as the “Digidhan” movement.
“There has also been an increase in curiosity about cashless transactions. The poorest of the poor are making attempts to learn, and people are gradually moving towards doing business without cash. There has been a surge in various modes of digital payment after demonetisation,” he added.
Like other failed government experiments, the rupee ban produced widespread chaos for millions of Indian consumers. The banks and ATMs ran out of money, consumers did not have any money to purchase basic items and their bank savings were essentially wiped out in a 24-hour period (SEE: India’s War on Cash and the Poor).
As usual, the government said it had to embark upon this policy to rein in tax evaders, fight criminal outfits and to put an end to corruption in the public and private sectors.
–AM
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