Washington: Prime Minister Narendra Modi’s move to withdraw higher-value bank notes from circulation is hurting ordinary citizens rather than making a serious attempt at combating corruption, according to former US treasury secretary Lawrence Summers. It caught citizens by surprise in an economy where businesses and consumers often transact in hard cash. “The ongoing chaos in India and the resulting loss of trust in government fortify us in this judgement,” Summers wrote. While the government assesses that the move could expose as much as $74 billion in unaccounted cash, opinions are mixed about its impact on future tax evasion. “Without new measures to combat corruption, we doubt that this currency reform will have lasting benefits,” Summers and Sarin said.

Source: Mint November 22, 2016 04:40 UTC