India withdraws 500 and 1,000 rupee notes in effort to fight corruption
Tuesday 8 November 2016 19.22 GMT

India’s prime minister, Narendra Modi, has announced that 500 and 1,000 rupee notes are to be taken out of circulation, in a move expected to plunge the the country’s economy into chaos.

In a surprise televised address on Tuesday night, Modi said the demonetisation of India’s highest-value banknotes, worth about £6 and £12, would start from midnight.

The move is an effort to close down the booming economy of untaxed cash transactions, which allows corruption, the funding of terrorist groups, and keeps counterfeit notes in circulation.

Addressing the nation, Modi said: “The exchange of 500 and 1,000 rupee notes being tendered as currency will be stopped from today. Black marketeers and traitors who use black money will not be able to move large amounts of money and 500 and 1,000 rupee notes will become worthless pieces of paper. Those citizens earning honestly and with hard work, their interests will be protected.”

Modi emphasised that citizens who had 500 and 1,000 rupee notes need not panic, as cash could be deposited at banks or post offices until the end of 2016...

https://www.theguardian.com/world/2016/ ... corruption

Fancy that. India's highest banknotes are/were worth £12 (less than $US 15 ) !!!

I don't see how this would actually stop untaxed cash transactions...

india economy is too big n the notes r too small in denomination n value, its too freaking much to count all that small notes

The Indian PM has picked a bad time to restrict cash. Just like Cambodia, at this time of year the Indian wedding season is in full swing. And just like Cambodia, weddings cost a lot of money.

India allows 250,000-rupee withdrawals for wedding expenses

India’s central bank has said people can withdraw up to 250,000 rupees (£2,900) for wedding-related expenses, provided they submit adequate proof and the wedding is on or before 30 December.

The prime minister’s decision to withdraw the high-value bills in the middle of the wedding and seed-sowing season has drawn widespread criticism from Indians forced to queue at banks to exchange bills or without cash to pay for goods and services.

The RBI said the wedding withdrawals could be made by either of the parents or the people getting married after submitting an application. People looking to withdraw must submit evidence of the wedding, including the invitation card, copies of receipts for advance payments and a detailed list of people who would receive the cash.

The Guardian.