The media reported that there has been a large increase in the cash circulating compared to the last few years and RBI is worried about it. As usual there is no honest analysis in the media or government of the reason why people are removing the money from the bank and holding cash,

However the report in economic times newspaper in May 2016, at least carried a response from a business owner. He said that any banking transaction will be tracked closely and it will be linked to the PAN number of the person, and it can be used for harassment. Often the government officials harassing professionals, business owners have limited or half knowledge, do not operate professionally, and do not bother to check with the person who they are accusing, often without proof.

These powerful officials will accuse professionals and business owners of having black money, to defame, cheat, exploit and torture the person for the rest of their life. Though the person may be innocent and the officials cannot find any proof after 6 years, these officials will not have the honesty to admit their mistake and repeat allegations of black money against the honest person like parrots or taperecorded robots. It remains difficult for a small business owner or professional to fight the slander of powerful government officials who can waste tax payer money and resources without being questioned or held accountable.

While a small business owner or professional or salaried person who will not pay a small amount of tax due to software problems or factors, they will receive a notice and pay a penalty, However when government officials, especially in intelligence agencies are extremely careless, incompetent and make fake allegations against harmless citizens without any proof at all, no action is ever taken against these officials, they are allowed to waste tax payer money for more than 6 years, without being questioned, held accountable.

While a lot of news about black money is published in the media, no coverage is given to the unlucky professionals and small business owners whose life, finances have been ruined by careless, incompetent intelligence agency officials making fake allegations without any proof at all. However, increasingly people are aware of innocent harmless people whose life has become a nightmare because of careless dishonest intelligence agency officials who make fake allegations tracking the banking transactions.

While cash is difficult and expensive to handle, there is one great advantage of using cash, the person paying and receiving payment cannot be specifically identified. The intelligence and security agencies also cannot track the cash transactions accurately, so people transacting in cash are not harassed. On the other hand, in India business with almost 100% cheque or electronic transactions are closely monitored, and are an attractive takeover target for large companies. Ironically compared to other businesses, online business owners in india are far more likely to be falsely accused of black money as part of hostile takeover attempt.

So as long as non cash banking transactions are monitored closely by incompetent careless yet extremely powerful officials who cannot be held accountable for their mistake, the problem will become worse and people who have plenty of money like jewellers will keep cash.