Through demonetisation Modi was trying to put a curb on black money. Will it really work? With cash and black money so intertwined, it is difficult to objectively evaluate demonetisation. Black money do not reside in currency and that the Modi move would hardly dent its existing stock. But it is a known fact that illegal income almost always originates in cash, before changing into other asset forms. That may be the reason behind Modi’s vouching of cashless economy.
Now, the technology to handle bank accounts using mobile phone even without internet connectivity has arrived. For this, one just need to dial *99# to do basic banking instantly from his account-linked mobile phone. The phone needn’t be a smart phone, but any baseline phone.