The Black-Money Hang-over...

A large part of Rs 500 and Rs 1000 black-money has been converted in to gold even after demonetisation in the shadow market... There was no ban on gold accumulation and sale of it... Black-money can easily be converted into gold and make high value denomination notes black money into white... There was no restriction on selling gold and depositing the money as sales turnover... Gold traders could easily sell gold by accepting banned notes and then submit the money at banks as profits... There was no restriction on depositing money with PAN as business-profits... Unusual gold-sales must be brought to scrutiny...

Delaying the time limit to cut-out high-value denomination black-currency would increase the hangover... Black-money hoarders are smart people... More time to them would increase conversion to other asset classes to create black-wealth... Cash is still not abolished absolutely and banks are still accepting the banned-notes which could be a business turnover after selling something... Cash in Rs 500 or Rs 1000 notes still do not require a bank-account-number or PAN to verify the source of income to buy investment assets such as gold or foreign-exchange or land... A lot of black-money has already been converted in black-wealth... Unusual income during the demonetization-period should be brought under the lens... No significant price-crash has been observed even after replacing 86% of the currency from circulation which might be attributed to the grace-period to exchange old currency or deposits in bank-accounts... Gifts and inheritance in a back-date are still out of the purview of scrutiny... Only income has been targeted... There is alot of room for improvization to reduce ill-gotten wealth in the last five or ten-years... Notwithstanding, cash-less transactions would decide the fate of black-money-less-transactions, black-money and black-wealth...

A help of few thousands to the poor after increase in government coffers after demonetization would not last too long... PM should invest in innovation and skill-development to increase productivity and wages and incomes ... something durable... it is likely to increase demand in the economy further on a solid base...

Demonetisation is likely to lower inflation which could make things affordable for the poor... even food... poor people could buy nutritious-food... It is a strike on inequality... PM has repeatedly said that this would benefit the poor...