Black money

Will currency demonetisation assist catching any black money hoarders or corrupt people?

While watching TV in the evening today, It suddenly stuck me that the currency demonetisation will not assist Modi government in catching any significant number of individuals, bureaucrats, tax evaders, cops or politicians unless they make the blunder of depositing unaccounted money in the bank. Only stupid people will get caught.

People should understand that what is being deposited in banks is not black money

Modi government is misleading the people by making announcements that over Rs. 5 lakh crore in old currency has been deposited in the banks without declaring or suggesting what is the colour of this money. People should understand that practically almost all of this money would be white money or tax paid money. For instance, whatever money I had in cash at home, I deposited the same in my bank and have since then withdrawn more than what I had deposited to meet my household expenses. This is what most of the people would have done. The money deposited in banks will not be black money or unaccounted money as nobody would risk depositing that money in the bank as that money would be not only be taxable but also maybe subject to penalty. More important reason why people will not deposit unaccounted money in banks because that would open the to investigation. So they would launder the money in some way or decide to write it of as loss. This money also includes money that would be deposited by companies / businesses who had made sale till the 8th of Nov which they would also deposit in the banks.

What should have been the story of Modi Government on currency demonetization?

As mentioned in my earlier posts, Modi government has not got its story right because a logical and a believable story needs to be built on truth and facts. If I was asked to build the story for demonetization of currency by Modi Government, it would have been something like this. Modi government has a logical story to tell.

PR disaster for PM Modi

PM Modi’s public relations machinery has made fatal mistakes.