Ben­e­fits of In­dian cash over­haul elu­sive as dead­line passes.

The Denver Post - - BUSINESS -

Fifty days ago, In­dia yanked most of its cur­rency from cir­cu­la­tion with­out warn­ing, jolt­ing the econ­omy and leav­ing most cit­i­zens scram­bling for cash. As the dead­line for ex­chang­ing the de­val­ued 500- and 1,000-ru­pee notes for new ones hit Fri­day, many In­di­ans were still stuck wait­ing in long bank lines.

Empty ATMs and ever-chang­ing rules pre­vented peo­ple from with­draw­ing money, and many small, cash-re­liant busi­nesses from cin­e­mas to neigh­bor­hood gro­cery stores suf­fered huge losses or went un­der.

De­spite those prob­lems, Prime Min­is­ter Naren­dra Modi said his Nov. 8 de­mon­e­ti­za­tion de­cree suc­ceeded in un­cov­er­ing tax eva­sion and crack­ing down on graft. The In­dian gov­ern­ment is urg­ing pa­tience, in­sist­ing it’s play­ing a long game that will even­tu­ally mod­ern­ize In­dian so­ci­ety and ben­e­fit the poor.

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