Friday, February 12, 2010

An idea to the Finance Ministry

A passing thought (slightly insane though)- How do we cut down counterfeit notes circulating in our economy and at the same time passively bring the black economy under the scanner of income tax folks? Remove and purge all 500 Rs and 1000 Rs notes from circulation.

If you observe, counterfeiting activity is largely confined to higher denominations (Rs 500 and Rs 1000 notes) . The bad guys will not print Rs 100, 50 or 20 notes as much enthusiastically as they would print Rs 1000 or 500 notes. Also, people would turn to cheque, demand draft or other electronic means for large monetary transactions, as it would be extremely cumbersome to handle cash in the absence of large denominations.

Our champions of Aam admi in political circles cannot cry foul, because according to accepted norms, the Aam admi is not generally expected to deal with 500 Rs or 1000 Rs notes !!

1 comment:

Anonymous said...

Nalla idea thaan.. Aanaa nadakkaathuu...As black economy funds major part of the election 'costs' for parties,no state/central party wud agree to this!