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India pulls 500, 1,000 rupee notes to fight graft

Published Nov 09, 2016 12:45am

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Indian Prime Minister Narendra Modi ordered the withdrawal of 500 and 1,000 rupee notes from circulation on Tuesday in a shock announcement designed to tackle widespread corruption and tax evasion.

Modi said that while people could exchange their old notes for new bills at banks or post offices until the end of the year, or deposit them in their accounts, they would no longer be legal tender from midnight.

“To break the grip of corruption and black money, we have decided that the 500 and 1,000 rupee currency notes presently in use will no longer be legal tender from midnight that is 8 November, 2016,” he said in a televised address to the nation.

“This means that these notes will not be acceptable for transaction from midnight onwards.” After a one-day shutdown of all banks and ATMs, new 500 and 2,000 rupee denomination notes would be issued from Thursday by the Reserve Bank of India (RBI), the country's central bank.

The 500 and 1,000 notes, which are worth around $7.50 and $15 respectively, are the largest bills in use in India which is still a massively cash intensive economy.

Since coming to power in 2014, Modi has pledged to crack down on so-called black money -- vast piles of wealth kept hidden from the tax authorities -- with a series of new measures, including 10-year jail terms for evaders.

The latest announcement comes a little over a month after the government raised nearly $10 billion through a tax amnesty for Indians to report undeclared income and assets.

Finance Secretary Shaktikant Das said the decision was “a very bold and powerful and a very decisive step to fight the menace of black money and the use of fake Indian currency notes”.

Spy cameras

He warned those with hidden stashes of cash that banks would be extra vigilant with CCTV cameras to record identities and all banking transactions.

While the use of debit and credit cards has increased in the last decade in India, many small family-owned businesses insist on taking cash to evade tax or else ask for mark-ups to cushion the blow.

Most business leaders welcomed Tuesday's announcement although there were some concerns about the impact on small traders.

“It is perhaps the most significant move ever taken to curtail the parallel economy,” said Chanda Kochchar, chief executive of ICICI Bank.

“This move will give a sharp boost to all formal channels of payment which in turn will help the formal economy to grow.” Some $439 billion left the country illicitly from 2003-2012, according to estimates from the Global Financial Integrity group in Washington.

Many of India's wealthiest citizens channel money to tax havens and convert it into jewellery and antiques to avoid tax.

Domestically, targets for investigation include temples and ashrams, where lavish donations can be a front for money laundering, and cricket betting. The property sector too is awash with black money.

Only 2.89 per cent of Indians pay any income tax at all, India's previous finance minister told parliament in 2013.

The prime minister said that the move was also designed to counter Pakistan-based extremist groups who carry out attacks on India, saying “enemies from across the border” were financing their activities by mass producing counterfeit Indian notes.

Finance secretary Das said there had been a disproportionate rise in the number of 500 and 1,000 rupee notes in circulation in the last five years.

He revealed that the new 500 rupee note would bear the image of Delhi's iconic Red Fort while the new pink 2,000 rupee note would feature India's “Mangalyaan” Mars orbiter.

RBI chief Urjit Patel told reporters the central bank was ready to get the new notes into circulation swiftly. “The RBI has been concerned with the growing menace of fake Indian currency notes which has been increasing in numbers,” he added.

While the old bills will no longer be legal tender in shops, hospitals and transport operators will continue to accept them for the next 72 hours.

They would also be accepted at gas stations run by public sector oil companies, and at milk booths and crematoriums.

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Comments (191) Closed



General Nov 09, 2016 12:53am

What a move !! Impressed by Indian PM

Aslam Shaikh Nov 09, 2016 12:54am

India will be developed soon

naren Nov 09, 2016 01:00am

Another master stroke!!!

bk Nov 09, 2016 01:05am

Superb and bold move by modi govt. Hatsoff. Keep up the good work.

JJ Nov 09, 2016 01:08am

GOOD MOVE.

Sami Nov 09, 2016 01:10am

Modi is a visionary. Wish Pakistan had some one like him.

Irfan Nov 09, 2016 01:11am

Is there something we should learned from them

malik Nov 09, 2016 01:11am

this is how you tackle corruption

ANCIENT Sage Nov 09, 2016 01:12am

Bold move.Well done India

sid Nov 09, 2016 01:13am

WOW.. this is crazy. Step by step this man is changing India to be a GLOBAL POWER. For the good of the poor and law abiding Indian's everywhere..

TruePakistani Nov 09, 2016 01:30am

Great and Bold step.

kashif Nov 09, 2016 01:32am

Good step for India. Same is needed in Pakistan.

John Nov 09, 2016 01:38am

This is a masterstroke by Modi to wipe out illegal money from the country.

Changez Khan Nov 09, 2016 01:39am

What a corrupt country? Just amazing.

Arif Nov 09, 2016 01:41am

I wish Modi was our PM !

Human Nov 09, 2016 01:59am

Modi is the true leader.

London Nov 09, 2016 02:05am

Another masterstroke !! Right now Modi is the strongest leader in the world... He is not playing vote politics.. Delivering what is expected by the citizens of a strong democracy....

reddy Nov 09, 2016 02:12am

Good Job Modi. You stand on what you say. Please continue eradicating the black money. way to go.....

SBB Nov 09, 2016 02:17am

This is what leaders do - Definitive action targeted at those hurting the country. Great decision.

IMTIAZ ALI KHAN Nov 09, 2016 02:19am

Good job for the economy, but Narendra is not a leader who has good records with minorities.

kashmiri Nov 09, 2016 02:22am

An excellent measure to curb graft and terrorism. Well done!

TG Nov 09, 2016 02:32am

You have to give credit where it is due! What a Prime Minister they have! Kudos.

syed Nov 09, 2016 02:43am

A master stroke I would say. Pakistan must learn and do the same..that's only way to fight the menace of corruption and to curb illegal activities such as Hawala system.

Usman Bashir Nov 09, 2016 02:45am

beautiful move by modi :)

Sk Nov 09, 2016 02:46am

Bold move by a bold leader

Thanos Nov 09, 2016 02:52am

What a master stroke by our great leader! This is a true visionary PM.. Bravo India!!

Reddy Nov 09, 2016 02:53am

Bold step for bright feature

layman Nov 09, 2016 02:55am

great move by great leader !!!!

Random Non Pakistani Guy Nov 09, 2016 02:59am

good read

Strange but bold Nov 09, 2016 03:20am

Strange, shocking but could be very effective. One more Modi surprise !

Rahat Nov 09, 2016 03:30am

What a brave move by Modi. Only an honest and non corrupt leader like Modi can dare to act against corruption and black money. India is on the right track.

Syed Nov 09, 2016 03:33am

Welcome Move... Hope Pakistan also gets courage to take bold steps toward fighting corruption.. Instead of diverting it's citizen attention toward kashmir issue and all...

Ali Raza Rizvi Nov 09, 2016 03:39am

You would be surprised that there are political leaders like Mamata Bannerjee, Kejriwal, and Digvijay Singh who are doing their traditional politics even on such an issue that will be such a huge benefit to India. Democracy does have its disadvantages.

Choudhary Nov 09, 2016 03:42am

Wonderful step by Modi Govt. It should be replicated in Pakistan also.

Vicky Nov 09, 2016 04:07am

Modi style.....tha perfect style of working

Jally Fellow Nov 09, 2016 04:07am

Great move by Modi Government..

SR Nov 09, 2016 04:09am

Working and Thinking PM... all the best.

SG Nov 09, 2016 04:11am

Let the irrelevant trolling begin

AHA Nov 09, 2016 04:19am

This is real courageous step and a mammoth effort. Kudos Modi for your sincere effort to curb the big curse.

AHA Nov 09, 2016 04:20am

And currency notes are not an ordinary one. They can be tracked by satellite even they are hidden 20 M below the ground. World will take this a a model.

BObby Nov 09, 2016 04:23am

Genius!

BK Nov 09, 2016 04:26am

This is a game changing move by the modi govt! Btw the new 2000 rupee note will have a nano GPS chip n that will enable the govt to track all notes n prevent money stashing of 2000 rs notes!

Salim Nov 09, 2016 04:33am

Most powerful, decisive and bold decision ever seen by Indian PM to boom the econmy. As the new notes are inbuilt with GPS they can be located their presence even 120 mts below earth surface with their numbers. Appreciate his efforts.

Satyam Nov 09, 2016 04:34am

Revolutionary move from Modi.

Ron Nov 09, 2016 04:38am

Very clever move

Akhri pasta Nov 09, 2016 04:48am

Master Move by Modi

Kumar, USA Nov 09, 2016 04:50am

Good Move by Modi Ji

VR Nov 09, 2016 04:56am

Good move to fight corruption.

Chandru Nov 09, 2016 05:35am

Visionary

beginning of end Nov 09, 2016 05:37am

prooud!!!

KH Nov 09, 2016 05:57am

This is called stroke... India has a fuctioning govt.

ali Nov 09, 2016 06:25am

This shows the fake money is having impact on Indian economy.

Bee Nov 09, 2016 06:25am

Excellent...!

Shan Nov 09, 2016 06:49am

One of the best move I have seen by any leader of the world. Congratulations Mr Modi, Needs a lot of guts and determination for a step like this.

Indian Government will be twice rich over night after December 30th as they can reissue all the currency that was not exchanged (Black Money) into Indian treasury.

Feroz Nov 09, 2016 06:51am

Excellent move though short term disruption and inconvenience is inevitable. Today all ATM's and Banks will be closed, so without small denomination notes one is stranded. Today one country busy counting votes, another country busy counting notes.

Shaukat Ali Khan Nov 09, 2016 07:00am

A great decision for Indian nation. We need similar steps here.

Blackjack Nov 09, 2016 07:06am

Great Decision!!!

KV Nov 09, 2016 07:07am

Great move by Indian government

Kiran Nov 09, 2016 07:08am

Bold decision

Henri Xavier Nov 09, 2016 07:22am

Great Step

Henri Xavier Nov 09, 2016 07:22am

Great Step!

Sk Nov 09, 2016 07:24am

Great decision ..!

Asif Nov 09, 2016 07:31am

Only an honest leader like Modi can take such a bold decision.

Khaled Nov 09, 2016 07:32am

A very good step, why cant we do it in Pakistan?

aga khan Nov 09, 2016 07:52am

I am Very Jealous-- Can any of our leaders in Pakistan dare to take to such a BOLD step???

Zafar Ahmed Nov 09, 2016 08:01am

@Irfan We are not supposed to talk about corruption as this will derail the democracy and on the other side our elite may be asking for 50000 & 100000 !

Zen Nov 09, 2016 08:20am

A Master Stroke!

alap Nov 09, 2016 08:30am

what a monster move!!!! but is it going to help much in bringing black money from overseas as per his election promise?

Truth prevails Nov 09, 2016 08:32am

@ali fake money results in negative growth !! Imagine the jump in the growth after the decision!!

lootra Nov 09, 2016 08:35am

If you are a honest citizen and love your country then this is a masterstroke. A very bold move to get rid of the black money hoarders who also increase corruption by using their ill-gotten money for personal gains.

This is also a path forward for the neighbourhood to remove monetary power from vested interests which will benefit the poor and in turn everyone in the region.Will SAARC countries do the same to clean up the neighbourhood?

Overall, the entire region will be so much better off by reducing corruption.

zakir Nov 09, 2016 08:34am

@IMTIAZ ALI KHAN do not go with media reporting.

jaatboy Nov 09, 2016 08:46am

@IMTIAZ ALI KHAN when the economy improves , this talk of minority & majority will lose relevance

nazeer Nov 09, 2016 08:48am

great decision!!!!!!!!

Truth Nov 09, 2016 08:56am

Appreciate support from Dawn & Pakistani people. After all we have found one common enemy and that evil is corruption.

Zak {the lover} Nov 09, 2016 09:00am

America is counting its votes and India is counting its notes

Mouli Nov 09, 2016 08:59am

Amazing Move. But what about the black money which is safely hidden in Swiss banks accounts ? Will the names be revealed and action taken ?

Last Word Nov 09, 2016 08:59am

Modi has carried out a surgical strike against black money holders in India which is indeed commendable..

ST Nov 09, 2016 09:10am

Great decision. If you can't recover black money, just scrap it. It will reduce cash transactions in Indian economy and will encourage legal transactions like cheques, cards etc. Only an honest leader, who doesn't have any black money himself, can take a decision like this...

Vivek Wani Nov 09, 2016 09:15am

As I observed peoples supporting this move from Pakistan, pain of corruption is same like India. Abolish corruption from Indian Subcontinent. Appreciating Modiji, Pak Awam & The Great Dawn,No.1 unbiased international newspaper.

alap Nov 09, 2016 09:30am

now i will also know how much money my wife is hiding from me.. hahaha

Peace finder Nov 09, 2016 09:40am

Such a move is required in Pakistan to curb corruption, black money

Syed Hussain Nov 09, 2016 09:42am

I am a Pakistani and I am very jealous of Indian people who got such a wonderful PM.

Syed Hussain Nov 09, 2016 09:43am

@Zak {the lover} haha

sk Nov 09, 2016 09:46am

Yes, Modi has shown the world the value of being honest and brave! World can take a lesson from him. Also, my pakistani friends should realize now that he was very serious when he said that "We both (India and Pakistan) should fight together with poverty and corruption..and lets see who wins first!!

SK Nov 09, 2016 09:47am

@Zak {the lover} Lover of notes or votes or both ??? The country wants to know !!

Salman Nov 09, 2016 09:51am

Good step.

However in Pakistan there is going to be limited advantage as politicians and bureaucrats are way smarter. They keep their holdings in foreign countries and offshore companies.

rafiq Nov 09, 2016 10:00am

Hope our country gets PM like Modiji

Sajid Nov 09, 2016 10:44am

Greatest PM , India had after independence . India is going to progress a lot in his leadership.

Muhammad Abdul Moiz Nov 09, 2016 10:45am

Best move so far by Modi. a very good initiative against corruption

Tariq Rashid Nov 09, 2016 10:55am

One thing Modi is good actor !!

Rashid Nov 09, 2016 11:28am

Cancel Rs 5000 note in Pakistan

RRL Nov 09, 2016 11:56am

@Rashid this big note only for corruption.

Libin Jose Nov 09, 2016 12:36pm

This man has spine.. a real strong spine ! ModiJi

DV Nov 09, 2016 12:39pm

He is really honest and the best PM.

a Nov 09, 2016 01:21pm

@Ali Raza Rizvi Congress has categorically welcomed the move.

Nav Nov 09, 2016 01:30pm

Modi also has blocked large cash transactions. Only 20,000 can be taken from your account as cash. Every other large transaction has to happen as Cheque, DD, Credit card, debit card, Mobile wallet transaction. Govt. wants to track all money transaction through bank electronic network.

Nav Nov 09, 2016 01:33pm

What will happen to the people who have kept cash in home inside the pillows? Or people who have not deposited money. People have lost money in the land deals, where the price has been reported less and the black-money has been taken without paying taxes.

Abcd Nov 09, 2016 01:39pm

Brave efforts by PM Narendra Modiji to curb black money.

Nida Nov 09, 2016 02:21pm

My neighbor is a big builder. Every morning his family sits in the front garden for tea and chat and usually its a gala time, a show for other neighbors to see and be jealous. today morning 9 nov, the house is very quiet, some big SUVs pulled in early morning and seems like a long meeting going on somewhere inside. Not a soul to be seen outside. Great move by Modi !!

Global Peace Nov 09, 2016 02:31pm

Pakistan come on lets match India with same Move

HAFIZ NAULA Nov 09, 2016 02:31pm

I was not fan of this person long ago but looking at last 2.5 years work he has done for his countryman without any favoritism. Almost all the govt. Policies and action taken by him is to uplift poor people of India. Bold step towards making country corruption free. Slowly I am being fan of Narendra Modi.

SK Nov 09, 2016 03:00pm

@kashif Unfortunately Pakistan's real wealth is not in Pakistan but abroad.

Sonal Nov 09, 2016 03:09pm

@Syed Hussain he is wonderful. Thank you

Humarine Nov 09, 2016 03:22pm

I is like a man arranges a party to know who in his locality are his enemy there his archenemy would not come obviously.At the time of offering food, plates are given but food is not prepared yet.

The situation in India is like this, the announcement has reached to the public but what is more important the ordar has not reached to all public institutions and as a result markets are closed,patients are left untreated,many people and tourists are left starved.In sort, Indian economy stops for few days.

Truth Nov 09, 2016 03:36pm

We need to learn at least some thing good from across the border. A bold move by India PM.

nationalist Nov 09, 2016 03:37pm

Decision was not sudden.It merely started with bank account for all. Then linked bank accounts with Aadhar, then brought disclosure of bank account passport and Aadhar no. in income tax return.Add to it the various data mining and collection tools in the hands of the income tax department.Then the income disclosure scheme.And this masterstroke.Truly a systematic change in the last 2 years!!! Timing is also key - 8 pm announcement means no possibility to make last moment transaction at jewelers shop or any impact on share market.

Congratulations India for a legendary leader. It can be chaos in the moment, it will be revolutionary transforming for our coming generations. I don't mind bearing this inconvenience now, for a better future.

lafanga Nov 09, 2016 03:53pm

Pakistan should do the same with 5000, 1000 and 500 rupee notes specially since the police recovered wads of cash under the house of one of Baluchistan legislators home.

Mk Nov 09, 2016 04:06pm

Great move, indeed. India will benefit to the tune of 100 to 150 billion USD by curbing the menace of black money. Now, Modi government should bring back more than 1.5 trillion USD Indian money stashed abroad in the tax havens. Well done, Modi ji.

Imran khan Nov 09, 2016 04:28pm

@Changez Khan , Boss think positive... it's a very nice move by modi... Our country even not able to solve small small problems...

Malik Nov 09, 2016 04:36pm

This man is something, bold move. Admire him more now

a k gupta Nov 09, 2016 04:56pm

@Humarine There is no gain without pain. And we are ok to bear this pain for couple of days even though it may mean some level of inconvenience. We owe that much to our country BTW - the hospitals are open and very much accepting the notes.

sachin Nov 09, 2016 05:05pm

Dear Pakistani's your reactions show that the real concern is corruption and not something else. we have a common agreement on this. Both of Our region was eaten by corrupt politicians hope with such moves we will get good times and our reach past.

Mady Nov 09, 2016 05:25pm

Getting this feeling that the one's at higher level has some idea of the distress of salaried/working class whose savings had been eaten away by corruption, irrational house prices. First it was RBI Guv. Raghuram-Rajan now Mr Modi. Thanks a lot PM. I believe more such move to come in remaining tenure.

hnr Nov 09, 2016 05:26pm

@kashmiri End to pumping fake currency which had become truly a big menace.Let the burn those notes and enjoy at least the warmth.

Tamil Guru Nov 09, 2016 05:46pm

A well planned surgical strike on black money by Indian PM Modi. Well done !!

Neeraj Nov 09, 2016 05:54pm

The move have brought agony and inconvenience to Indian Housewives who conceal and hordes the cash surreptitiously from their respective husbands. Now they are perplexed what to do with those notes and now their act will get unreavealed.

tapish Nov 09, 2016 05:58pm

Good move by the PM. It will reduce corruption and inflation. People will now be more scared to indulge in corrupt practices as they realise the govt is serious.

Nayan Dave Nov 09, 2016 06:04pm

If Pakistani educated middle -class wake up than they can change in pakistan like India.

pure Ind Nov 09, 2016 06:12pm

Really impressed & happy by the positive response from across the border, surely we have our issues but credit needs to be given where deserved.

sahid_kashmiri Nov 09, 2016 06:22pm

@Humarine Its not exactly that what you exaggerated

Sandip Nov 09, 2016 06:30pm

@lootra, I believe the whole subcontinent should do away with Rupee — Indian, Pakistani, Bangladeshi and others — and replane it with a unified currency called "Subcontinent Rupee" like the EU. This will eradicate black money and menace of fake currency notes and help the whole region prosper.

Rahul Patil Pune Nov 09, 2016 06:37pm

No doubt he's a visionary n great leader! He works for India. Kudos

peace for all Nov 09, 2016 06:37pm

Rs.17,54,000 crore in circulation today. 45% of it is Rs.500 notes while 39% is Rs.1,000 denomination. To remove BlackMoney or parallel underground economy, PM Narendra Modi took a historic decision. That means, 84% of the currency notes in circulation in India now, are becoming invalid in 40 minutes!! Can you believe it?? Now this is what we call as StrikeonBlackMoney . If you can sleep peacefully tonight, you are an honest man or woman. this day will be remembered in indian history

Dr V P Joshi Nov 09, 2016 06:44pm

Very nice paper with judicious news

Garg Nov 09, 2016 07:01pm

In India, 500 and 1000 rupees are 86% of total circulated money and He scrapped all of it in single shot. New notes will be printed limited & Tracked By central bank closely. Indian Black money is many time in domestic than Foreign. This will scrapped complete Parallel and Domestic Black Money. Will help against Terrorism, Naxal & Fake currency which is major challange and move to digital Economy. Can't bring black money to India

How done: 1. Opened Banks in every village & post office converted to somewhat banks. 2. Opened Accounts and issue cards to everyone. 3. Closed suspected NGO, involved in big foreign money 4. Increased IncomeTax team 5. Passed Real estate bill which force to compelte project in time as Black money is mostly used in it. 6. Asked People to declare their black money. 7. Designed New and hightech Notes and made it to reach banks secretly. 8. Pulled 500/1000 so secretly & now Banks have Camera and IT is monitoring who will convert what amount All Secret, No leaks

Garg Nov 09, 2016 07:02pm

It is biggest Economic ripple in India after 1990 reforms. Every Common Indian is so Happy like anything.

zak Nov 09, 2016 07:20pm

The corrupt are around Modi, but he is targeting the poor and the minorities. Also shows a country with an economic crisis.

san Nov 09, 2016 07:20pm

@Humarine No doubt, some sort of inconvenience is being faced today by common people.But we Indians are well prepared to accept the transition period, for the sake of country's economy in larger perspective.

AG Nov 09, 2016 07:26pm

Will our PM follow his friend's footsteps?

D Nov 09, 2016 07:46pm

@AHA nano GPS is a rumour, not true.

On Wednesday afternoon, RBI spokesperson Alpana Killawala told News18, "such a technology does not exist at the moment in the world, then how can we introduce such a feature?”

Ranga Nov 09, 2016 07:55pm

@Humarine you are wrong. You probably have not understood fully.

Arsalan Nov 09, 2016 08:16pm

Learn something from this Pakistan!

vinod Narang Nov 09, 2016 08:22pm

Good Job Mr. Modi. Lets all those corrupt officials suffer in pain now because that money in their lockers is nothing but TRASH

Satish Nov 09, 2016 08:28pm

Bold move by the great leader. Hats off to Modi.

Satish Nov 09, 2016 08:29pm

Bold move by the great leader. Hats off to Modi.

NE Nov 09, 2016 09:04pm

@Humarine The INR 500 and 1000 notes will be accepted in hospitals, ration shops, petrol pumps, train stations and airports.

sandeep Nov 09, 2016 09:04pm

I think India and Pakistan should focus on progress and these kind of moves rather than fighting and loosing energy

Indian Nov 09, 2016 09:07pm

@Syed soo true

Nazir Nov 09, 2016 09:25pm

To my dear Pakistanis, this is how you tackle curroption.

DJ London Nov 09, 2016 09:40pm

I am really so happy to see the comments from our Pakistan friends, you can see almost all of them appreciated it. This shows India and Pakistan are friendly neighbours. I appeal to both citizens be friends and don't fight, let us unite to make both our countries prosperous.

Salman Nov 09, 2016 10:04pm

@zak what is the basis of your this statement...?

Umair Arshad Nov 09, 2016 10:56pm

This we call a vision. I'm impressed.

sharath Nov 09, 2016 11:48pm

I really like Dawn newspaper ,there is no partiality whether it's Indian or Pakistani commenting, great!!I will all always fan of dawn...

Mariyam Nov 10, 2016 12:23am

Where is Pakistans Modi.....

jaatboy Nov 10, 2016 03:57am

@zak how do you come up with such arguments ???

KP Nov 10, 2016 04:12am

@Mouli Its in the works, and started lot earlier, though require cooperation of other nations.

Abu bakar Nov 10, 2016 06:15am

This is the kind of bold actions Pakistan needs

Mohajir Nov 10, 2016 09:17am

@IMTIAZ ALI KHAN PM Modi is working for ALL Indians. His visionary schemes are helping entire India.

I spoke to me muslim friends & relatives in India. Modi's approval ratings amongst minorities is amazingly high. He is doing good work and that is appreciated by all Indians.

Rp Nov 10, 2016 09:19am

@Nav - I guess they will think twice before doing it again!

The Fake ZAK Nov 10, 2016 09:22am

@zak - wow ZAK just WOW

J Abid Nov 10, 2016 12:30pm

Good move. Pakistan Government should learn this good lesson from Modi.

Yameen Nov 10, 2016 12:40pm

I wonder how this will stop corruption when you are issuing new notes of the same denomination?

Waqas Nov 10, 2016 12:57pm

Banks do very dirty games........They would join hands with the corrupt people and show that the money was deposited in the BACK dates.........Banks have no ethics.....they can go to any length to earn profits........A childish kind of move......lol

true minds Nov 10, 2016 01:12pm

@zak HA HA..He hasn't pull notes only for minorities..its for all.

vg Nov 10, 2016 01:20pm

@Waqas - not possible ... all the systems are automated and linked to RBI. this is posible only if you have manual book keeping.. even if happened the rbi will cancel the banking license. So no bank will do this gamble.

Sid Nov 10, 2016 01:25pm

@Zak you have a penchant of attracting comments through your statement. Trump like :) To understand Zak just reverse engineer the statement :). That is the essence of Zak.

teel Nov 10, 2016 01:27pm

@IMTIAZ ALI KHAN "Good job for the economy, but Narendra is not a leader who has good records with minorities."

Out of topic, but what story you know about that? if from a reliable non biased source. please share. thanks

naik Nov 10, 2016 01:27pm

@sandeep well said

Commoner Nov 10, 2016 02:14pm

@AHA dude get ur facts right, put ur brains to use a little and stop believing everything said on social media.

Haris Nov 10, 2016 02:17pm

Pakistan should do the same. It should wipe out 5000, 1000 & 500 rupee notes.

zee Nov 10, 2016 02:18pm

@Waqas Even if it is backdated..once a person has crores in his accounts the Income Tax authorities will track him and a case of disproportionate assets will be pursued and the govt. has already said that those having no anwers to how they got thier wealth will be fined 200% of the amount.

subash Nov 10, 2016 02:25pm

@Arif thanks for repect to our PM

Vinie Nov 10, 2016 02:45pm

Good for india and bad for those who hide somewhere with their money...I dont know how can they change their old notes? R.I.p to old currency.

Hiflyer Nov 10, 2016 03:11pm

@IMTIAZ ALI KHAN Bhai, Minorities have not suffered at all in his leadership. Just rumors spread by the Congress guys so that they could get the embisal Rahul Gandhi to power.

Ijaz Mohammed Nov 10, 2016 03:18pm

@Changez Khan Are you saying our country is not?

shaha Nov 10, 2016 04:29pm

@zak Which weed do you use buddy :-)

M.Saeed Nov 10, 2016 06:05pm

Remember, in a similar move in an African country, containers full of fake new currency notes had arrived in that country, much before the old currency was demonetized, forcing the cancellation of the whole exercise after the discovery.

Mani Nov 10, 2016 06:20pm

He is a good leader and a disciplined human being too. Some people played vote bank politics in the name of religion to defame him.

Srikantha Nov 10, 2016 09:28pm

Good work it's working

SB Nov 10, 2016 10:01pm

@Waqas , No back dating possible after core banking implementation. All transaction are online and accounts balanced centrally same day

SB Nov 10, 2016 10:05pm

@Syed Hussain , Please be optimistics and make sure Pakistan too have a strong leadership

SB Nov 10, 2016 10:06pm

@Arif , Pakistan too can have better leader....Work with your freinds..nothing is impossible

Candyman Nov 10, 2016 10:17pm

@M.Saeed Sorry brother, this is not Africa.

Pvk Nov 10, 2016 10:18pm

Amazing work Modi.....

gknatarajan Nov 10, 2016 11:19pm

experts opine that real estate market where blackmoney is being used heavily is likely to fall by 30%?after this action!?

AK Nov 10, 2016 11:29pm

@Waqas This is Modi govt. bro. No bank will dare to do the trick.

Shekhar Nov 11, 2016 12:31am

@IMTIAZ ALI KHAN Dear Imtiaz, i think it is just a political rumor. When Modi takes bold such steps they make all the citizens stronger be it from any religion, cast or creed. Brilliant move by Modi govt. He is working tirelessly and nonstop for development for all.

Syed Nov 11, 2016 03:14am

@M.Saeed India is not Africa!! This won't happen there.

lootra Nov 11, 2016 05:06am

@Sandip That is not practical. You don't want to lose the ability to make independent economic decisions. Modi was able to pull the currency notes because of that control over monetary policy. You cannot pull currency notes if it is a joint currency for starters. Also, the weaker economies will keep your currency levels low and reduce your buying power.

Good thought but not doable unless most countries in the group on similar economic and political landscape. Even EU is struggling with the challenges so the subcontinent with all the inherent conflicts will cause the currency union to fail sooner rather than later.

vikas Nov 11, 2016 09:05am

@AG Nawaz dont consider #PMModi as his friend anymore

Murtaza Nov 11, 2016 09:46am

That's what you always expect from Nationalists.......buy not from so called secularists

zakir Nov 11, 2016 09:49am

@Waqas is it possible in pakistan? every transaction of bank is updated digitally, and updated day to day basis.

zakir Nov 11, 2016 09:57am

@Humarine hospitals, air,train bookings are allowed for accepting old 500/1000 rupees notes for 72 houurs, and this information was conveyed on all news channels very clearly from PM itself. It seemed that Government had very thorough home worked before announcing. inconvenience against his big step is obvious. nothing is perfect, but we hope this step will show positive impact on our economy.

ladybug Nov 11, 2016 10:24am

@IMTIAZ ALI KHAN Ask the minorities if they feel persecuted after Modi became PM. This false narrative does not work anymore

Imtiaz ali khan Nov 11, 2016 01:37pm

Too all my Indian family here. Good moves to improve economy is always appreciated and I also pray for India to lift 600 million plus people from poverty, circulation of proper currency helps do that so it's a good move. As far as minorities, bloodshed once done can't be washed Gujrat killings of thousands can't be forgotten. Though love to India from Pakistan, they are my family as well, just a border between us. Shanti.

Prathap kumar M R Nov 11, 2016 03:25pm

@Syed Dear friend Throgh F B i told same thing to one Pak person .He is from Lohor or Karachi

Krishna Nov 11, 2016 04:37pm

@aga khan I'm sure Pakistan has several such leaders and they will see the light of the day - if not today, tomorrow! Usually 99% people are gullible, ruled by 0.99999% selfish and intelligent lot. There is always a hope that 0.0000001% of good, and wise people who can take over - Wisdom is the key, not intelligence.

Pawan Nov 11, 2016 05:14pm

Keep it up India

Biju Nair Nov 11, 2016 05:30pm

@Yameen First, whatever blackmoney is in circulation today, will become white when they change it in bank. Second, source will be identified. Also, the mafia in the real estate will be dealt a blow as less money is unaccounted.

R.s.Gangadharan Nov 11, 2016 08:19pm

Brave and hold decision. Expecting different action also Swiss bank black money

Advocate in making Nov 11, 2016 11:27pm

One of the first steps that China took after achieving independence was the withdrawal of higher denomination currency notes. Concomitantly, it increased the size of notes of various denominations that were to remain in circulation. This was done with the obvious objective of taking the bull of corruption by the horn.

So, India pulling back Rs. 1,000 and Rs. 500 notes from circulation is not a novel idea. But this shows the seriousness of the Indian government in tackling the issue of corruption.

Pakistan has much higher denomination notes as well as even higher value prize bonds in circulation. What to talk of pulling back the high denomination notes from circulation, the last PPP government was considering to introduce even Rs. 10,000 and Rs. 25,000 notes. The proposal, mercifully, did not materialize.

The PML-N government, if it is serious in denting the scale of corruption, should follow in the foot steps of India and withdraw all notes and prize bonds worth more than Rs. 100.