Reducing Black Money in India
1. Banks should not issue Rs.1000 notes back to the customer. All the Cash counters, ATMs etc. should have Rs. 500 as the highest denomination.
2. After 2/3 months of this Banks should inform the government of any Rs. 1000 deposit of Rs.50,000 or more.
3. Pursuing selected few will unearth where the money was lying idle.
4. Even if a few people are forced to declare their black money, others will be pressurised to legalise their money, declare and pay tax.
5. Repeat the above with Rs. 500 also. This way all those who stash money will be found and that money will flow into the mainstream.
6. Along side we can also strengthen RuPay and encourage every to use that payment method.
7. Successful implementation of IMPS at all levels will also provide financial inclusion to the majority of the rural public. more