ON NOVEMBER 8th 2016, Narendra Modi, India’s prime minister, stunned its 1.3bn people by announcing that most banknotes would soon become worthless. Indians then queued for weeks on end to exchange or deposit their banned money at banks. The comfort for the poor was that the greedy, tax-dodging rich would suffer more, as they struggled to launder their suitcases full of cash by year-end.Not so. A report from the central bank, the Reserve Bank of India (RBI), on August 30th suggests that ofthe 15.4trn rupees ($241bn) withdrawn—roughly 86% of all banknotes by value—15.3trn rupees, or 99% ofthem, have been accounted for. Either the “black money” never existed or, more likely, the hoarders found a way of making it legitimate.Defenders ofthe scheme say it is merely one plank of a wider fight against informal economic activity and corruption. Banks have enjoyed an influx of cash. Digital payments are up (from a low base), as issuance of replacement notes has not caught...Continue reading
Artigos Relacionados
- Labour hopes to cut net migration to around 200,000
- Tax break for businesses made permanent
- Autumn Statement: Jeremy Hunt cuts National Insurance but tax burden still rises
- What the Autumn Statement means for you and your money
- Autumn Statement: Hunt denies tax cuts were pre-election giveaway
- Austerity warning for public services after tax cuts
- Barbie movie added £80m to UK economy and used 6,000 extras, Warner Bros says
- What a falling inflation rate means for your finances
- Interest rates expected to be held after small economic growth
- UK facing permanent higher taxes, IFS think tank says