3 ms·

I'm confused. Isn't getting cash a problem only if you have a bank account?

• dogma1138 10y ago
  The problem is that the cash was traded effectively outside of the economic system. In most countries Cash passes through banks or clearinghouses after a transaction is completed. Your employer pays you with a cheque or a bank transfer; you take out cash from the ATM; you buy groceries with that Cash; The store deposits the Cash at a bank or a clearinghouse and receives a cheque or has it's account debited. In this chain the majority of transactions; even cash transactions are "on paper", the problem with India is that people effectively trade with Cash without involving the banks; you get paid in cash (w/ no taxes paid); you buy something from the local grocer w/ cash w/o any recepiet; the local grocer pays their suppliers with cash again often w/o any receipts; pays their employees with cash and so on and on. This means that the majority of the transactions are in effect conducted in grey or black markets.