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The Central Government's demonetisation drive is going to have a significant impact on the the country's 'legal parallel economy,' say experts. India, which is one of the most cash-intensive economies in the world, has a cash-to-GDP ratio of 12 per cent - almost four times as much the other major economies. The sections worst affected by the drive are daily-wage labourers, plantation workers and migrant labourers who depend on their daily/weekly wages to meet expenses. Though most migrant labourers and daily-wage workers have bank account, they insist on cash payment. Now, the government’s initiatives to push India towards digital/cash-less transactions have hit the 'legal parallel economy' that transacts in hard currency.
