The government had hoped demonetisation would encourage a switch to traceable digital payments in a country where just 3% had been paying taxes. Modi personally championed credit and debit cards in the aftermath of demonetisation, beaming down from billboards encouraging Indians to embark on a digital revolution. But sales from plastic have declined 13% from highs in December 2016, when new cash notes remained scarce. But in August the Reserve Bank of India announced that 99% of the devalued bills had been returned, undermining Modi’s claim that stashes of black money would be uncovered. It depends how closely the government monitors this,” said a dry fruit importer in a traditional market in Delhi’s old quarter.

Source: Mint November 08, 2017 05:26 UTC