Ban on 500 and 1000 Rupee notes will suck 17.8 Trillion rupees of currency in circulation

Indian Prime Minister Narendra Modi's biggest move to fight against corruption, black money and tax evasion can add $45 billion ( 3 Trillion Rupees)  to Indian  budget which is almost three times that of Iceland's economy. 

Currency Ban

Economists are scrambling to calculate the potential gains in banning 500 and 1000 Rupee notes as legal tender. This move will suck about 86 percent of currency ( 17.8 Trillion Rupees) in circulation. Analysts say that almost third of 86% of currency will prove to be legal and unclaimed where this money could be used for reforms.

It is estimated that Real estate, Jewellery and Cement are among the sectors that will be squeezed. Less cash in hands could also drive down the prices of key goods which is the big positive sign for controlling Inflation. We can also predict the considerable drop of interest rates over the course of next three to six months.This will boom the Indian economy backed by capital expenditure cycle.It is definitely a war on corruption, money laundering and parallel economy.