A decade after demonetisation, no dent in black money and corruption

A decade ago this week, Prime Minister Narendra Modi rendered 86% of Indian currency useless. On November 8, 2016, in a surprise 8 pm address, he announced the demonetisation of Rs 500 and Rs 1,000 banknotes at midnight.

Despite the “temporary hardship”, Modi claimed the radical move would curb the ills of black money, corruption, fake currency and terrorism. He called upon Indians to make a “​​grand sacrifice for cleansing our country”.

A decade later, did demonetisation meet its goals? A Scroll comparison of Modi’s November 2016 speech with official government data and global indices does not point to a success.

Black money – or untaxed cash – has not receded from the economy. While counterfeit notes may have reduced, corruption levels have not changed, and law enforcement agencies are struggling with terrorist financing.

Claim 1: Cash and high-value notes

In 2016, the PM’s demonetisation speech noted that India’s “currency management” was such that high denomination notes made up “between 80%-90% of the country’s cash value”. Modi said: “The magnitude of cash in circulation is directly linked to the level of corruption. ”

This is also true in 2026. After the government phased out Rs 2,000 banknotes, the Rs 500 note remained the highest denomination. In 2025-’26, it made up 85.5% of the cash...

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