India still has a lot of black money to uncover

The national program India initiated to clamp down on black money (money which income and other taxes have not been paid). According Forbes the program seems unsuccessful. India banned high-value notes in order to uncover people hiding undeclared wealth and therefore outstanding tax revenue.

New reports have shown that nearly all of the banned currency has been returned to the Central Bank of India making the program pointless. The banning of black money was done with the purpose of making it harder for people to hide undisclosed funds and replace it with legal tender at banks.

India was hoping at least 20% of the cash would not be return to the central bank, remove its value and hit to the holder of black money. The long term goal for India was to move the economy from cash to a cashless, but now India will have to rethink its method as the progress is delayed.

 

Source: Forbes

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