Deadline for Indian rupee exchange closes

Local banks in India are to stop accepting invalid rupee notes on Friday, while the deadline for India's Central Bank to exchange notes is set for the end of March.

Photo by: Reuters
Photo by: Reuters

The decision to take old high-denomination rupee notes out of circulation is intended to help tackle corruption.

A deadline for Indians to deposit voided rupee notes at banks ends on Friday, with restrictions on the amount of cash that can be withdrawn from ATMs also due to be lifted, 52 days after the Indian government scrapped high-denomination notes in a crackdown on corruption.

The government of Indian Prime Minister Narendra Modi removed 500 and 1,000 rupee notes, worth around $7.50 and $15 respectively, on November 8, billing the measure as an attempt to root out corruption, end terror financing, and move the country into the age of digital payments.

He promised all old bills will be replaced with enough new notes by the end of this month. But his government has struggled to do that, leading to long lines at banks and an economic slump. Until the recent move, nearly 90 percent of transactions in India were in cash.

TRT World has more.

 

Source: 
TRTWorld and agencies