The evidence suggests that cash has returned to daily transactions and demonetisation may not have had the desired effect, as of now.
The value and volume of mobile-based transactions recorded negative growth rates between November 2016 and August 2017.
In a series of tweets, Prime Minister Modi has defended the move saying it has resulted in the ‘highest ever unearthing of black money and dealt a decisive blow to Naxalism and terrorism.’
To promote a less cash economy, coercive steps like demonetisation are ineffective. Nowhere in the world has any nation taken such a drastic step that swept off 86% of the currency in circulation.
“Organised loot and a legalised plunder” is how Dr Manmohan Singh describes ‘demonetisation’. It looks like no one can stop the cash flow.
Yes, Modi has failed.
U.Srinivas
Editor
