India runs on cash and that comes with its own set of problems. The most pronounced among them is the black money that the cash economy generates, which fuels the country’s shadow economy used to evade taxes and scrutiny.

It is that shadow economy that the government is targeting through its decision to withdraw high denomination currency notes of Rs 500 and Rs 1000.

Prime Minister Narendra Modi, while announcing the decision on Tuesday, made it clear that the government wants to clamp down on the black economy. Taking Rs 500 and Rs 1000 notes out of circulation is one step in a series of measures taken, said Modi while highlighting that those with unaccounted money were given the opportunity to disclose these funds under the recently concluded Income Disclosure Scheme. Those who didn’t, will pay the price.