World

India withdraws 500 and 1,000 rupee notes in fight against graft, 'black money'

Modi says black money and corruption are the biggest obstacles in eradicating poverty

Reuters November 08, 2016

india 039 s prime minister narendra modi arrives at the asean summit in vientiane laos september 7 2016 reuters

India's Prime Minister Narendra Modi arrives at the ASEAN Summit in Vientiane, Laos September 7, 2016. REUTERS

Indian Prime Minister Narendra Modi on Tuesday announced that 500 and 1,000 rupee banknotes would be withdrawn from the financial system at midnight, saying it was part of a crackdown on rampant corruption.

The surprise step appears to be designed to bring billions of dollars worth of cash in unaccounted wealth into the mainstream economy.

"Black money and corruption are the biggest obstacles in eradicating poverty," he said in an address to the nation.

New 500 and 2,000 rupee denomination notes will be issued later, he added.

COMMENTS (15)

Benish | 8 years ago | Reply Very intelligent move by Mr. Modi... Our higher ups should also learn lesson from him as we are entertaining Rs.5000 currency notes. Sheer stupidity.. Just increasing the value of corruption.

Nav | 8 years ago | Reply Now, what will black money hoarders will do. The note packs they are holding inside their pillow is equal to a paper. If they go to bank to deposit and get back the replacement note, they will be tracked if the amount is more than Rs.50,000. Income tax department is looking at all the accounts for the amount more than 50,000. No notes are replaced without your ID proof. Fine is 200% for any amount more than 2.5 lakh(income tax eligibility limit) worth of notes deposited in last 50 days, unless you show proof that you have paid tax for land transactions and other transactions.

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brar | 8 years ago | Reply @Altaf pintu: bilkul theek

Malatesh | 8 years ago | Reply @wiserneighbour: This is hoax that new currencies are with high tech featuring bla bla bla... The only technology used is it is embedded with digital markings.

Altaf pintu | 8 years ago | Reply All indian wives are busy counting all Rs.1000 & 500 notes stolen from their husband's pocket over a period of yrs

wiserneighbour | 8 years ago | Reply what will Pakistani counterfeit industry will do now? New notes are high tech and traceability is the USP.

Hari | 8 years ago | Reply This is why people chant "Har Har Modi"

Vectra | 8 years ago | Reply Great step,this is like shooting many targets with one arrow.

Indialover | 8 years ago | Reply Blessed to be an Indian citizen with Modiji as PM. Posterity will bless us

Feroz | 8 years ago | Reply Undoubtedly a master move but not without pain because for a few days it will be a struggle if one does not have lower denomination currency notes. With ATM's and Banks closed today, at best one can use the credit card. One country is counting votes, another country is counting notes.

brar | 8 years ago | Reply @Atheist_Pakistani: This is over due should had happened immediately after 1947 like India but it will not happen the political parties are controlled by land sharks, you will have to work hard to compel the Govt to do this that will be naya Pakistan.

Raheel Sharif | 8 years ago | Reply Salute from Paksitan !!!

Atheist_Pakistani | 8 years ago | Reply Wow, I am truly impressed. This guy is for legit PML-N, do the same! Learn something! Pakistan needs exactly something like this. Another thing Pakistan needs is land reforms!

Anz | 8 years ago | Reply Master stroke and it required confidence

pk | 8 years ago | Reply Best thing happened since independence.

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