How to curb corruption (by not printing higher denomination of currency)?

I was watching this news show on Star News tonight where they had Baba Ramdev with them in studio. The host asked all sorts of things from Babaji and he really answered very faithfully from his heart – I believe. But, one thing which really caught my attention is – his suggestion that government should revoke and stop printing higher denomination of current – 1000, 500, and even 100… and its not even his own and fresh view on this matter – as per his speech even PM Mr. Manmohan Singh had expressed this idea quit long back. From economy point of view, this idea does holds solid ground.

Doing so, will curb corruption in a significant way. But, how?

“Given the current inflation, when everything is so expensive you don’t even get enough vegetables in rupees 500, where the economy go when we don’t have notes of 100, 500, 100″ Asked the interviewer to Baba Ramdev.

Though Baba Ramdev replied “We could use notes of 50, 20, 10s… What I was wondering, even in city like Bangalore where I live, If I go to vegetable market with 500 note I won’t be able to buy anything, sometimes – I must have 10 and 20 rupee notes. Some time even note of rupee 100 is also problem. So its really possible to survive without higher denomination of currency.

• Do we get our salary in cash? No, it is all electronic transfer, if-not-so, a cheque would be definitely there for a salary. The ones who does get salary in cash, I think (if not sure) they really won’t be needing any rupee 1000 or 500 note.
• Given the poverty level in country, do you know, many people don’t really need any currency note higher than 50.
• Now RBI, Banks and companies are trying to do all the transaction as much as possible via electronic transfer. so handling large amount of money is not a problem. Even we have cheques.
• Whatever higher currency you have, you can’t survive without loose change. Now even cabs accept cards.
• If we don’t have higher denomination of currency, how do you think, A Raja would take thousands of crore rupees in bribe – a fleet of trucks would be required to carry so much of money.
• Lot many sacks would be required to carry a crore rupee for bribe if we have only 10s, 20s and 50s, but only a small briefcase if we have 1000s.

It really makes sense if we stop printing notes of 100, 500 and 1000. If we have all the transactions in electronic or cheque way – how one would hide the black money? This is definitely help curbing corruption.