When 80% of money in India is with top 5% and they also hoard most of the black money. Moreover this money is already abroad or in some legal investment with the help of govt. I failed to understand why to go behind poor 80% and trouble their daily life. I think it's pure populist political move directed towards state election next month. Since ruling govt supporter already have money stashed abroad and will bring back.
No meaning in depositing money in banks to lend at loss to big supporters of current govt like ambani, Adani etc. Rajan was forced to go out. He would have never supported such foolish political move to trouble common man in India.
> I failed to understand why to go behind poor 80% and trouble their daily life
Taxes. The gov't can lock your bank account or take money from it if you don't pay your taxes. Then they are going to invent more taxes to be able to pay skyrocketing sovereign debt. Fines also. Then they will make you register other assets such as gold, art etc. and have it confiscated if you fail to do so. And it's not only India, it's allover the world. Good luck trying to pay in the EU with 500 euro bills or even 200 euro bills. Maybe after you exchange them at the bank and have your personal data on file. The US? Try to pay with cash in excess of $100. You do not have a credit card? Then you must be 1. a terrorist, 2. drug dealer or 3. laundering money.
I certainly expect them to try this in the US, but I don't expect them to succeed.
As it is, following Sutton's Law, I expect they're going to go after retirement accounts first "because that's where the money is", 10 times as much based on a minute with Google now, and it's a lot easier to get at.
Rajan stood for poor India... He saw through this... He was told to go.
My respect for rajan grew all the more the day I learnt that he had reservations about demonetisation plan.... .. I can see clearly why he was asked to go.
No meaning in depositing money in banks to lend at loss to big supporters of current govt like ambani, Adani etc. Rajan was forced to go out. He would have never supported such foolish political move to trouble common man in India.