More data needed to evaluate demonetisation4 min read . Updated: 11 Sep 2017, 04:48 AM IST
To say that demonetisation has completely failed to have an impact on black money would be too premature
The publication of Reserve Bank of India’s (RBI’s) annual report has rekindled the debate on the costs and benefits of demonetisation. The fact that more than 98% of the invalidated high value notes came back to the banking system is widely used as evidence supporting the view that demonetisation has failed to curb the black money menace. Supporters of demonetisation cite facts such as a close to 20% decline in currency in circulation, increase in the number of tax payers and identification of large number of shell companies to claim that demonetisation has succeeded.
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