Demonetisation part of Modi govt's drive against black money: Bibek Debroy

According to RBI, 99% of the junked Rs 500 and Rs 1,000 notes returned to the banking system

Bibek Debroy, chairman of the Economic Advisory Council to the Prime Minister (EAC-PM), today said demonetisation should be seen as part of government's drive against black money and not in isolation.

Speaking at an event to launch of book 'Black Money and Tax Havens' by Prof R Vaidyanathan, Debroy said the government had earlier come out with black money declaration scheme, which yielded only Rs 6,500 crore.

Referring to cash economy, he said around 2000-01, India's Cash to GDP ratio was 9-10 per cent, which recently shot up to 13 per cent.

"There was excessive use of cash that