Facts

Norway-Asia Business Review - - Articles -

In­dia

On 8 Novem­ber 2016, the Gov­ern­ment of In­dia an­nounced the de­mon­eti­sa­tion of all 1.5) INR 500 (USD 7.40) and INR 1,000 (USD ban­knotes of the Ma­hatma Gandhi Series. The lo­gis­ti­cal pro­cesses and prepa­ra­tions b. for print­ing new INR 500 and INR 2,000 ank notes be­gan in early May 2016. f.

The stock in­dices fell over 6% on the day ol­low­ing the an­nounce­ment. I.

In the days fol­low­ing the de­mon­eti­sa­tion, ndia faced se­vere cash short­ages.

The In­dian gov­ern­ment have de­mon­e­tised bank notes on two prior oc­ca­sions—once in 1946 and again in 1978. In both cases, the goal was to com­bat tax eva­sion by "black money" held out­side the for­mal eco­nomic sys­tem. I. ndone­sia

In De­cem­ber 2016, In­done­sia’s Cen­tral Bank again re­vived a plan to cut three ze­roes from the Ru­piah. How­ever, In­done­sian Fi­nance Min­is­ter said that the l. re­de­nom­i­na­tion pro­posal is not on the list of eg­isla­tive pri­or­i­ties for 2017.

If passed, there will be a six-year tran­si­tion pe­riod in place to phase out old bills.

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