Economics
Cashless Economy Still a Fantasy for India
- Modi says currency clamp down an opportunity to go digital
- Risk people will return to cash once crisis abates: analyst
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After first selling India’s cash ban as a strike against corruption, Prime Minister Narendra Modi has since pushed a tantalizing side benefit.
The move to eradicate 500 rupee ($7.3) and 1,000 rupee notes, representing 86 percent of currency in circulation, would also force hundreds of millions of cash-dependent Indians to use more online payments and bank accounts. That could be a key growth driver in years to come, boosting tax receipts as the black economy is turned white and increasing bank deposits that can be used for lending.