On 08 November 2016, Narendra Modi, the Prime Minister of India has announced about the demonetization of Rupees 500 and Rupees 1000 currency notes with immediate effect. He assured the nation that this measure is to curb the black money. The black money refers to the unaccounted, non-taxed money held by individuals. As per his plan new notes were ready and within two days the old currency notes could be replaced.
500 and 1000 Rupee notes constitute around 84 % value of Indian currency. Demonetization of such huge share of the currency has caused great difficulties for the ordinary citizens.
After one month of the demonetization the scarcity of currency felt across the country. Almost all the ATMs are dry. Huge queues are visible outside the bank branches and ATMs for withdrawal of the cash. The scarcity of the cash affected the life Indian poor.
Meanwhile huge amount of new currency recovered from individuals. Employees of the private sector bank Axis Bank were arrested for unauthorized exchange of old currency with the new currency.
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