In November 2016, India witnessed one of the boldest economic experiments in its history — Demonetization. Overnight, ₹500 and ₹1000 currency notes were declared invalid, with the objective of eliminating black money, curbing corruption, and pushing the country towards a digital economy. The move created a temporary shock, but nearly eight years later, it is clear that demonetization was not enough. Cash transactions, corruption, and tax evasion continue unabated. If India truly wants to eliminate corruption at its root, complete cash abolition is the only way forward.
The Failures of Demonetization and Successive Governments
While the intention behind demonetization was noble, the outcome fell far short of expectations:
- Almost all the demonetized cash returned to the banking system. The Reserve Bank of India later confirmed that over 99% of the notes had come back, proving that black money hoarders had found ways to convert their unaccounted cash.
- No significant drop in corruption. Despite the cash crunch during demonetization, cases of bribery, cash seizures, and tax avoidance continued.
- Governments failed to follow through. Successive governments at the Central, State, and Local levels never built a long-term strategy to eliminate the root cause — the use of physical currency.
- Public inconvenience without lasting benefit. Common people stood in long queues, suffered hardships, but the system of cash-based corruption remained intact.
Our governments have repeatedly failed to abolish the medium of corruption — currency notes. Instead, they have allowed the cash economy to revive and flourish again.
Why Complete Cash Abolition is Necessary
Physical cash is the fuel of corruption, tax evasion, and crime. As long as high-value currency notes exist, black money will find a place to hide. Cash is untraceable, untaxed, and unrecorded, making it the preferred medium for illegal transactions, political funding, bribes, and tax avoidance.
In today’s digital age, there is no technical barrier to living without cash. Every citizen can use:
- Debit/Credit Cards
- UPI and Mobile Wallets
- Net Banking
- Bank Cheques and Demand Drafts
Even small vendors, service providers, and daily wage earners can receive payments digitally. Countries like Sweden and Norway have already moved towards nearly cashless economies. India, with its robust digital infrastructure, can do the same.
The 90-Day Roadmap to Abolish Cash
If the government has the political will, it can eliminate cash usage within 90 days:
- Issue an executive order mandating that all transactions above ₹500 must be digital.
- Make it compulsory for all businesses, retailers, and service providers to accept debit/credit cards and UPI payments.
- Ban payment of salaries, purchase of property, jewelry, vehicles, and high-value goods in cash.
- Launch a nationwide awareness campaign educating citizens that cash leads to corruption and tax evasion.
- Prepare banks and digital payment platforms to handle increased transactions.
Conclusion
Demonetization was just a temporary shock to the cash economy; it did not solve the real problem. The government must now go beyond half-measures and abolish the use of cash entirely. Only when every transaction is traceable, recorded, and taxed will corruption, black money, and tax evasion truly end. The time has come to take this bold, final step for a clean, transparent, and honest India.