Indian Prime Minister Narendra Modi announced in November 2016 that denominations of 500 and 1,000 Indian rupees would cease to be legal tender with immediate effect and that the Indian public had fifty days to deposit the old notes into their bank accounts, removing the notes from circulation. This demonetization was a drastic decision because these notes constituted 86 percent of the cash in circulation in India, a high cash economy. Given the mammoth scale and extraordinary nature of the exercise, it is almost an obligation on the government’s part to reap a wide range of economic benefits from it and not just treat it as an exercise in raising tax revenues.
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