India unexpectedly scrapped all larger-denomination banknotes overnight in what New Delhi said was a move to stop counterfeiting and clamp down on the black economy.
Prime minister Narendra Modi said yesterday that 500 and 1,000 rupee notes — worth about $7.50 and $15 respectively — would cease to be legal tender from midnight. The announcement stunned Indians, who were given four hours’ notice that much of their cash would become “mere paper”.
Shortly after the news, Indian television showed queues of people building outside petrol stations and cash dispensers. Indians will be allowed to deposit or exchange their old currency notes at banks and post offices until the end of the year, but they will not be usable anywhere else, except government hospitals, pharmacies and emergency travel counters for a limited period.