ML-Implode News - Why India wiped out 86% of its cash overnight

Do not believe reports that this is primarily about bribery or terror financing, the real target is tax evasion and the policy is very daring indeed... Because so much business is done in cash, very few people pay tax on the money they earn. According to figures published by the government earlier this year, in 2013 only 1% of the population paid any income tax at all. As a result huge numbers of Indians have stashes of tax-free cash hidden away - known here as "black money".
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There is no limit to the amount that can be deposited in bank accounts until the end of December, but the government has warned that the tax authorities will be investigating any deposits above 250,000 rupees (Â£2,962). Breach that limit and you will be asked to prove that you have paid tax. If you cannot, you will be charged the full amount owed, plus a fine of 200% of the tax owed. For many people that could amount to be pretty much the full value of their hidden cash.

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Why India wiped out 86% of its cash overnight