Australia Should Scrap Big-Denomination Bank Notes, UBS Says
- Move would boost bank deposits, cut offshore funding reliance
- India banned 500, 1,000-rupee notes currently in circulation
Australian one-hundred dollar banknotes.
Photographer: Brent Lewin/BloombergThis article is for subscribers only.
Australia should follow India’s lead and scrap its biggest bank notes, UBS Group AG said.
“Removing large denomination notes in Australia would be good for the economy and good for the banks,” UBS analysts led by Jonathan Mott said in a note to clients on Monday. Benefits would include reduced crime and welfare fraud, increased tax revenue and a “spike” in bank deposits, he said.