Another Setback for Modi? India Validates 82% of' Ban' Notes

Indians have validated 82 percent of bank notes left worthless by Prime Minister Narendra Modi’s surprise move last month

Indians have validated 82 percent of bank notes left worthless by Prime Minister Narendra Modi’s surprise move last month, based on individuals with knowledge of the matter, sabotaging the government’s estimate of unaccounted wealth in the economy.

About 12.6 trillion rupees ($185 billion) had been deposited into bank accounts as of Dec. 3, the folks said, asking not to be identified citing rules for talking with the media. The authorities had estimated that about 5 trillion rupees of the 15.3 trillion rupees sucked out by Modi’s move would stay undeclared, indicating that this was cash stashed away to evade taxes, known locally as black money.

Deficiency of a meaningful cancellation could be a double blow for Modi as the measure was being used as a political and economic gauge of the success of his Nov. 8 move. Among Modi’s biggest campaign pledges was to expose black money in Asia’s No. 3 market, and economists were viewing the cash as a possible windfall for the government.