Prime Minister Narendra’s Modi’s sudden announcement of demonetising the currency notes of Rs 500 and Rs 1,000 has kept almost the entire country and people have descended into cash crunch ever since.
But there is a story behind this announcement and how one man, who was given just nine minutes to speak, resulted in the massive assault on black money.
Anil Bokil of Arthkranti, a Pune based financial think tank is the man who reportedly suggested some of the key measure to contain the flow of black money in economy and banning the big currency notes was one of them. Bokil who reportedly had met PM Modi, a few months back to give a presentation on financial reforms and how to contain the flow of black money. He was given time of just nine minutes to finish his argument, but PM Modi reportedly found his arguments so interesting that he kept discussing for almost two hours.
These were the main recommendations by Bokil:
1. Except import duty, stop collection of money under 56 different taxes
2. Ban big currency notes of Rs 1000, Rs 500 and even Rs 100
3. All transactions should take place via bank with help of cheque, Demand Draft and online.
4. Single banking system for revenue collection.
The reason Bokil reportedly gave behind these suggestions
1. In India, an average transaction of Rs 2.7 lakh crore is seen daily which accounts to Rs 800 lakh crore in a year. But only 20 per cent transaction out of this happens via banks, rest all takes place via cash which can’t be traced.
2. Country’s 78 per cent population spends only Rs 20 a day. Therefore, they don’t require bigger currency notes.