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Indian Prime Minister Narendra Modi on Tuesday announced that 500 and 1,000 rupee banknotes would be withdrawn from the financial system at midnight, saying it was part of a crackdown on rampant corruption.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

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COMMENTS (15)

Benish | 3 years ago | Reply | Recommend 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 | 3 years ago | Reply | Recommend 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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