Here are 5 questions on demonetisation that need to be answered
It will inflict a one-time shock only for people who have unaccounted cash on that day, not those who have already moved to other asset classes.

- Nov 12, 2016,
- Updated Nov 16, 2016 3:27 PM IST
Prime Minister Narendra Modi's surprise move to demonetise Rs 500 and Rs 1,000 notes in circulation to bring out black money is a laudable move. Whether it will have the desired effect will be known in a few months. It is a blunt instrument and it is likely to have some collateral damage as well. There are also a few things that are a bit puzzling, but these could become clearer over time.
This is not very clear at the moment. Sure, we have seen huge ads by the wallet and other fintech companies, but the government thinking on the issue is still to be understood. From the information that has come out so far, Rs 2,000 and new Rs 500 notes will be in circulation in sufficient numbers within a few days. In a few months, even new Rs 1,000 notes will be added. So far, the government has not indicated whether the supply of new notes will be less than the amount that was in circulation earlier. If not, there is no way the cash economy is going to get any smaller. Some people may move to online and mobile payment systems, but a huge chunk of the cash economy will continue. And over a period of time, fresh supplies of new notes will only add to the problem.
Prime Minister Narendra Modi's surprise move to demonetise Rs 500 and Rs 1,000 notes in circulation to bring out black money is a laudable move. Whether it will have the desired effect will be known in a few months. It is a blunt instrument and it is likely to have some collateral damage as well. There are also a few things that are a bit puzzling, but these could become clearer over time.
This is not very clear at the moment. Sure, we have seen huge ads by the wallet and other fintech companies, but the government thinking on the issue is still to be understood. From the information that has come out so far, Rs 2,000 and new Rs 500 notes will be in circulation in sufficient numbers within a few days. In a few months, even new Rs 1,000 notes will be added. So far, the government has not indicated whether the supply of new notes will be less than the amount that was in circulation earlier. If not, there is no way the cash economy is going to get any smaller. Some people may move to online and mobile payment systems, but a huge chunk of the cash economy will continue. And over a period of time, fresh supplies of new notes will only add to the problem.