On Demonetisation, India May Find A Follower In Australia

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Canberra: First India, then Venezuela and now Australia is mulling over the proposal to demonetise its 100 dollar currency note as the country attempts to target tax evaders.

While the Narendra Modi-led government has already started its fight against black money in the country, the Australian government is setting up a task force to curb black money and will appoint representatives during its mid-year budget meeting.

UBS had recently batted for removal of the highest-denomination currency in Australia, and said the country can follow India’s example.

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“We believe removing large-denomination notes in Australia would be good for the economy and good for the banks,” UBS had said.

According to a news report, Australian Revenue and Financial Services Minister Kelly O’Dwyer has called for a review of the 100-dollar note and announced plans to introduce caps on cash transactions over a certain limit.

According to some estimates, there are about 300 million 100-dollar bills in the market and about 92 percent of the currency in circulation is in 50- and 100-dollar notes.

On November 8, the Prime Minister announced demonetisation of Rs 500 and Rs 1000 currency notes, calling it a step against black money hoarders.

After India, the Venezuela government scrapped the 100-bolivar note, giving its holders barely four days to swap their old currency. Venezuela President Nicolas Maduro said the step will help fight smuggling mafias.