Shamika Ravi on implications on govt’s demonetisation move

Content from the Brookings Institution India Center is now archived. After seven years of an impactful partnership, as of September 11, 2020, Brookings India is now the Centre for Social and Economic Progress, an independent public policy institution based in India.

Speaking about Prime Minister Narendra Modi’s announcement to demonitise Rs 1000 and Rs 500 notes, Senior Fellow Shamika Ravi in this Facebook Live says the next few months will be painful, and should be seen as teething troubles for an economy trying hard to reform its corrupt self.

As an economy we should aim to go less-cash, and not cash-less, she says.

Scaling back large bills will not end crime, but it will force the underground economy to employ riskier and less liquid payment methods.