Follow us on:   

To fight graft, India withdraws large bills
November 8, 2016, 8:09 pm

Modi has made fighting corruption and increasing ease of doing business in India cornerstones of his legacy [Xinhua]

Modi has made fighting corruption and increasing ease of doing business in India cornerstones of his legacy [Xinhua]

In a surprise move, India will withdraw the 500 and 1,000 rupee notes from circulation effective midnight Tuesday official sources said in New Delhi.

The measure came following an announcement from Indian Prime Minister Narendra Modi who said it was an essential move to tackle graft in the country and crack down on unknown sources of income.

“To break the grip of corruption and black [unaccounted for] money, we have decided that the 500 and 1,000 rupee currency notes presently in use will no longer be legal tender from midnight ie 8 November, 2016,” Modi said in a speech which was special televised on national TV.

Security forces have long suspected that Islamic militants counterfeit the two currency denominations to fund their operations.

Over the next 50 days or so banks will issue replacements and exchange for the 500 and 1,000 rupee notes.

By that time, India’s financial system will have produced new 500 rupee bills and brand new 2,000 rupee notes.

It appears the 1,000 rupee note will be done away with altogether.

The measure also appears to work in tandem with Modi’s campaign to modernize India’s fiscal environment and increase ease of doing business there.

Eradicating corruption appears to be a cornerstone of the legacy he wants to leave behind.

“On one hand, we are number one in economic growth and on the other we are ranked 100 in global corruption rankings. Despite various steps, we have improved only to 76,” he said late Tuesday.

The BRICS Post with inputs from Agencies

Leave a Reply

Your email address will not be published. Required fields are marked *

Anti-Spam * Time limit is exhausted. Please reload the CAPTCHA.