Is India's abolition of large banknotes a smart move to fight corruption?

The spit of all countries in the world. However, Indian netizens believe that this is a good policy and the painful price is worth bearing. They think this move can really deal with serious counterfeit money, corruption and money laundering. Will it be a smart move against corruption to abolish large bills and move towards a "cashless society"?

Point velocity reading

1 is different from the general ridicule of domestic netizens. In India, most netizens expressed their support for this policy. They think that chaos is short-lived, but it is of great benefit in the long run. Reducing the use of cash can effectively deal with counterfeit money, corruption, black money, tax evasion and other phenomena, which is a direction that can be tried.

Not surprisingly, the Indian government's policy of abolishing paper money has caused massive chaos, but many Indian netizens still strongly support it and even think it is an exciting reform.

On the same day that Trump was elected president of the United States, Indian Prime Minister Modi announced an amazing decision. From now on, the original notes of 500 rupees and 1000 rupees will be invalid, and new notes of 500 rupees and 2000 rupees will be introduced. Old banknotes can be exchanged or deposited in the bank within a certain period of time. 1 rupee is about 0. 1 RMB. Modi's policy is equivalent to abolishing 50 yuan and 100 RMB banknotes in China. You can imagine how wide and how big the impact is. Many people suspect that Modi deliberately chose to announce this policy when the US election results came out, in order to reduce attention and reduce criticism from the international media.

The policy of abolishing paper money has caused confusion and received many criticisms.

However, the report that the abolition of large bills caused confusion soon spread all over the world. For example, it has caused the loss of people's wealth. Because too many people want to change the 500 and 1000 rupees in their hands, they would rather change the 500 rupees 1 into four usable rupees. For example, inflation was triggered, and the prices of many things immediately rose by more than 20%. Even according to Reuters's report, salt can still be bought with old banknotes in Mumbai, but the asking price of merchants is 10 times of the original. The policy of waste money has also triggered some more serious incidents. For example, it is reported that a hospital refused to accept old banknotes, rejected a baby, and the baby died. It is also reported that a woman in Telangana committed suicide because the government suddenly announced a new policy. The reason is that she just sold her house and got 5.6 million rupees in cash. When she heard the news, she thought it was invalid, so she looked for myopia.

Many netizens in China are very concerned about this new policy of Modi's government, but many people are "joking". This may be due to the western media's long-standing enthusiasm for "comparison between China and China" and the competitor's mentality caused by India's image of "shocking the world" in's online culture. Many people laugh at the confusion of the Indian government, thinking that it is similar to North Korea's past policy and will surely fail. Some people accuse the Indian government of neglecting the bottom people too much, and think that people with poor information and education in rural India will suffer big losses.

However, in India, most netizens expressed support for this policy. They think that chaos is short-lived, but it is beneficial in the long run. One reader of The Times of India said that "Modi has cracked down on black money, corruption, counterfeit money and crime, and we pay tribute to Modi, and we support you", while another reader called for "Don't panic, this is a groundbreaking reform, not a retrogression". On Quora, an English knowledge quiz community, many netizens expressed their excitement about this policy, thinking that it was Modi's masterstroke and a historic and glorious decision.

Indian netizens generally support Modi's policy.

The starting point of Modi's government is to crack down on counterfeit money, which I believe can also crack down on black money and corruption.

Why do Indian netizens care little about the chaos caused by the policy and support it instead? This is probably because the Indian people have long been dissatisfied with the economic and social situation, and the abolition of large old banknotes is a targeted response to these dissatisfaction. Moreover, Modi became the Prime Minister of India as the spokesman and reformer of the bottom people, so people have great expectations for Modi's policies.

Specifically, the primary starting point of this policy is to deal with counterfeit banknotes. How serious is the counterfeit currency problem in India? Seven or eight years ago, according to the figures of Indian intelligence agencies and the Central Bank of India, the total amount of counterfeit banknotes in circulation in India was as high as $510 billion, while the total amount of real money in Indian Rupee was $014 billion. According to this calculation, counterfeit money accounts for about 25% of the rupee circulating in the Indian market. In recent years, this situation has worsened. According to the data of the Bank of India, from 20 1 1 to 20 16, the supply of Indian banknotes only increased by about 40%, but the circulation of 500 rupees and 1000 rupees, which account for the vast majority, increased by 76% and 109 respectively. These counterfeit banknotes are even used to fund terrorists who are hostile to the Indian government. In the past, the proliferation of counterfeit banknotes was largely due to the poor anti-counterfeiting technology of old banknotes, which was not easy to be identified in circulation. This move to abolish a large number of old banknotes can directly make tens of billions of dollars worth of counterfeit banknotes in circulation lose value.

There are a lot of counterfeit money and black money in the circulation market in India.

Secondly, this approach can deal with the serious problems of black money, corruption and tax evasion in India. An Indian netizen gave an example, saying that a tycoon who manages mining by fraudulent means earns as much as 654.38+0.6 billion rupees in black money every day, mostly in cash. This netizen thinks that this person's money is invalid now, because it is black money, so there is no way to exchange it. Similarly, serious corruption and bribery in India are basically carried out through large bills, and these shady bills can't be used after the New Deal. Tax evasion in India is also very serious, because cash transactions can avoid accounting and auditing records, and the Indian government receives much less corporate income tax than it should.

Many people question that many government officials and party leaders are corrupt. Won't they get the news in advance? In particular, it is worth mentioning that the implementation of the policy of waste banknotes is quite secret, and only a few heads of government and officials of the central bank and security departments know it, so many Indians believe that the effect of the policy can be guaranteed.

However, when the Indian government abolished the old banknotes, it also issued new large denomination banknotes. Does this still make sense? Will there be no new counterfeit money, black money, corruption and tax evasion?

The goal of Modi's government is to minimize the use of cash, and the "cashless society" is indeed a direction worth trying.

When the Indian government implemented the New Deal, a word spread like wildfire. It is said that all the newly introduced 2000 rupees banknotes are equipped with miniature GPS positioning devices, so that the Indian government can clearly know the trend of the currency, thus putting an end to black money and corruption. But it's just a beautiful idea. In fact, Indian officials have never mentioned this statement. Mainly from a technical point of view, this practice is unrealistic, and the thickness of paper money cannot accommodate a GPS chip.

But it is wrong to think that it is meaningless to issue new banknotes. The main purpose of issuing new banknotes is to facilitate people's use, because there are no large banknotes at all, which is not conducive to real trading activities. However, the Indian government can control the number of new banknotes issued and only meet the basic needs of circulation. More demand for circulation can be solved by electronic money, which means that India is seeking to establish a "cashless society" or a "cashless society". This is an essential difference from India's policy of issuing new banknotes from used banknotes in the1970s, because there was no way to promote electronic money at that time, and because many old banknotes were recycled and destroyed, many new banknotes had to be issued, so it could only treat the symptoms, not the root cause, and corruption would soon come back. But this time, things are different. As long as the government can well control the quantity of large new banknotes and use new anti-counterfeiting technology for new banknotes, it can still play a good role in preventing counterfeit banknotes, money laundering, corruption and tax evasion.

"Cashless society" can effectively reduce corruption.

The Indian government is ready for a cashless society. In recent years, India has established the world's largest biometric database-AADHAR project and UPI unified electronic payment system. These two projects enable the Indian people to conduct electronic transactions with confidence. Coupled with the rise of smart phones in India, it is possible to build a "cashless society" from scratch, at least in many urban areas, making electronic payment within reach. Although India's conditions in this respect are not as good as those of Denmark, Sweden and other countries that are also trying to establish a "cashless society", the key point is that the people are dissatisfied with the status quo and have enough support for Modi's government. Moreover, for Indians, the privacy issues brought by electronic payment are relatively secondary, and it is more important to be able to fight corruption, deal with counterfeit money and increase security. In addition to India, other countries with low development level are also reducing cash as much as possible, such as Nigeria, and have achieved initial results.

For China, although the situation is very different from that of India, reducing the use of cash is indeed an anti-corruption practice worth learning from.