Region:
BRICS
Category:
Economy

India abolishes largest banknotes

Region:
BRICS
Category:
Economy
Publication date:
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Indian Prime Minister Narendra Modi has announced that 500 and 1,000 rupee banknotes will be withdrawn from circulation as part of a crackdown on rampant corruption and counterfeit currency

Indian Prime Minister Narendra Modi has announced the abolition of the country's largest-denomination banknotes to fight corruption.

Modi said in a televised speech on Tuesday that 500 and 1,000-rupee notes would be withdrawn from circulation at midnight. 1,000 rupees are worth about 15 dollars.

He said they will be replaced by new 500 and 2,000-rupee notes and people would be able to change their money at banks from Thursday.

Modi said the Indian economy has been enjoying high growth while black money and corruption have also grown. He asked the public to help cleanse the country and at the same time not to panic.

The deadline for exchanging old notes for new ones is December 30th. There is also a limit on the amount that can be changed at one time.

People have been flocking to ATMs in the capital, New Delhi. Long lines of vehicles have formed at gas stations as people try to use the larger notes.