In­dian banks to use in­deli­ble ink to mop out black money

The Star (Kenya) - - News -

In­dian banks will use in­deli­ble ink to en­sure peo­ple only change old notes for new ones once un­der Prime Min­is­ter Naren­dra Modi’s scheme to fight “black money” (un­ac­counted-for cash). The step comes a week af­ter the PM or­dered the with­drawal of large de­nom­i­na­tion bank notes from cir­cu­la­tion, in a shock “de­mon­eti­sa­tion” drive to fight tax eva­sion, cor­rup­tion and forgery. The gov­ern­ment only gave peo­ple a few hours no­tice be­fore can­celling old 500 and 1,000 ru­pee bank notes that ac­counted for 86 per cent of cash cir­cu­lat­ing in Asia’s third-largest econ­omy. The sud­den move has caused huge dis­rup­tion to daily life, espe­cially for poor peo­ple who use cash. There were lengthy queues at banks in New Delhi and Mum­bai as peo­ple waited in hope that cash dis­pensers would be re­filled. But peo­ple said they are will­ing to put up with the has­sle – as long as it doesn’t last too long.

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