Scrap Rs 500, Rs 2,000 notes to curb corruption, says Andhra CM

Andhra Pradesh Chief Minister N Chandrababu Naidu on Monday reiterated his demand for the Union government to scrap Rs 500 and Rs 2,000 currency notes, arguing that eliminating high-value cash transactions would help curb corruption.

Naidu’s remarks came a day after the 10th anniversary of the demonetisation exercise. On November 8, 2016, Prime Minister Narendra Modi had announced that Rs 500 and Rs 1,000 notes would cease to be legal tender from midnight. One of the stated objectives of the move was to reduce cash transactions and encourage the use of digital payments.

Modi had said that the decision had been taken to “fight corruption, black money and terrorism”.

However, a Scroll analysis of official government data and global indices found that black money – or untaxed cash – has not receded from the economy even after a decade of demonetisation. While counterfeit notes may have reduced, corruption levels have not changed, and law enforcement agencies continue to struggle with terrorist financing.

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

On Monday, Naidu said that digital currency and correct implementation of technology will help facilitate wealth creation and poverty eradication.

“I was the one who gave inputs for the digital currency report,” he was quoted as saying. “I had urged the prime...

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