Indians rush frantically to launder their ‘black money’
Indians’ ingenuity is being mightily tested as they rush to save their “black money,” stashes of hundreds of thousands, even millions, of rupees they have accumulated without paying taxes.
For decades, Indians have stuffed their mattresses with 500- and 1,000-rupee notes, the most widely circulated bills, worth the equivalent of a few dollars.
But Prime Minister Narendra Modi wanted to tax that money. His strategy was to force Indians to reveal what they had been hoarding. How? He banned the bills and told everyone that they had to exchange them for new ones.
The ban, which was announced Nov. 8, has thrown the economy into chaos and sent Indians on a desperate search for some way, any way, to launder their accumulated money and avoid a financially disastrous loss.
People can exchange the banned notes through the end of the year for smaller denominations or new bills.