Moreover, 80 per cent of the Rs and Rs1, notes which constituted 86 per cent of the cash in circulation was not black money, but rather white money used by businesses and citizens. It does not stop these activities from continuing. Even if the government managed to suck out all the black cash in circulation, it would not have much effect on the black economy which involves various activities in which black incomes are generated. First, it must be understood that the black money the government was targeting is only about 1 per cent of the black wealth held in the country and only 3. The objectives of the government were laudable, but it seems as though the scheme was imposed on the country with little or no forethought.
The Scourge of the Black Economy in India: Origins, Causes and Remedies
