In India, cash is the King !

DNA ( June 27,2011 ) reports :

Ø      No of Rs 500 + Rs 1000 notes in circulation in India

        >          17.1 % by volume

        >         76.5 % by value

And, most likely no more than 1 % by frequency of circulation !

Ø   Highest denomination bank notes in

       USA ..         100  Dollar ( 100 times smallest note )

           UK  .             50  Pound ( 50 times smallest note )

           India .        1000  Rupees ( 1000 times smallest note )

USA / UK have avoided higher denomination notes, only because they facilitate corruption , money laundering etc.

Monetary authorities in USA / UK have found a link between high value bank notes and clandestine dealings.

No wonder our politicians are reluctant to de-monetize ! 1000 rupee notes are so easy to carry / store / give / receive – even brandish bundles in parliament !

De-monetization is certainly not the only answer to the problem of black money in India, but it could well be a part of the solution.

With regards

hemen  parekh