Scribd
Upload
105 views1 page

White Paper Black Money

The informal sector and cash economy generate significant black money due to the large number of cash transactions that occur. Factors like dependence on agriculture, a large informal sector, and insufficient banking infrastructure with many unbanked and underbanked areas contribute to India having a large cash economy where black money can be easily generated.

Uploaded by

Harshit Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
105 views1 page

White Paper Black Money

The informal sector and cash economy generate significant black money due to the large number of cash transactions that occur. Factors like dependence on agriculture, a large informal sector, and insufficient banking infrastructure with many unbanked and underbanked areas contribute to India having a large cash economy where black money can be easily generated.

Uploaded by

Harshit Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

2.4.

Generation of Black money in Some Vulnerable Sections of the Economy


2.4.7 Informal Sector and Cash Economy: The issue of black money is related to the
magnitude of
cash transactions in the informal economy. The demand for currency is determined by a number
of factors
such as income, price levels, and opportunity cost of holding currency. Factors like dependence
on
agriculture, existence of a large informal sector, and insufficient banking infrastructure with large
un-banked
and under-banked areas contribute to the large cash economy in India.

You might also like