On the eve of November 8, 2016 Indians all over the country and abroad were taken by surprise when Prime Minister, Narendra Modi announced that all currency of denomination of ₹500 and ₹1000 shall be invalid with effect from midnight. After the initial groaning and confusion, as the Prime Minister’s speech went on, it was clear to all that this bold move was very well planned to cause minimum inconvenience to the citizens of the nation and the economic sector. Prime Minister Modi, in his address to the nation, sought the cooperation of every single citizen to fight against corruption and financial terrorism.
The Press Release issued by the Ministry of Finance, Government of India, provides that the World Bank in July 2010 estimated the size of the shadow economy for India at 20.7% of the GDP in 1999 and rising to 23.2% in 2007. A parallel shadow economy corrodes and eats into the vitals of the Country’s economy. It generates inflation which adversely affects the poor and the middle classes more than others. It deprives government of its legitimate revenues which could have been otherwise used for welfare and development activities Read More .