Here is an interesting article on India’s recent demonetization of 500 and 1000 rupee notes that appeared on theguardian written by
There are some very valid points that the author raised
1. Only a small proportion of the funds received from illicit tax-evading activities is kept in the form of cash, and almost never by large players. They tend instead to buy real estate and other property, hold gold and stocks and shares and, most of all, move the money abroad. So this move touches only a tiny fraction of the assets accumulated through illegal activities
2. The two cancelled notes account for 86% of all the currency in circulation; over 90% of all transactions are conducted in cash, and over 85% of workers get their incomes in cash.
The most obvious steps – such as taking a strong line on the known illegal accounts held in Swiss banks and tax havens, or ending the ability to hold shares without revealing your identity, or making funding of political parties transparent – have simply not been taken.
But, as the author rightly said, Modi did the smoke and mirrors stuff that he is so good at !