Region:
BRICS
Category:
Economy

India takes steps to ease impact from banknote ban

Region:
BRICS
Category:
Economy
Publication date:
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The exchange of old Rs. 500 and Rs. 1,000 notes for new currency has been stopped at all banks from Thursday midnight, but will continue at the Reserve Bank of India, the central bank has said in a statement this morning

India will stop over-the-counter exchange of old currency notes, which were made illegal earlier this month, after midnight on Nov 24, the country's finance ministry said on Twitter.

Earlier this month the government withdrew large denomination notes in an attempt to uncover billions of dollars in undeclared wealth.

Those with old notes will still be allowed to deposit them into their bank accounts until Dec. 31, but not permitted to do outright exchanges.

Foreign citizens will be permitted to exchange foreign currency up to 5,000 rupees ($73) a week, the ministry said.

The government had permitted various exemptions for certain transactions where payment could be made through old 500 rupees and 1,000 rupees notes. These exemptions, with some additions and modifications, will continue until Dec. 15.
Reuters