INDIA CURRENCY CRISIS - India Govt Bans 500 & 1000 Rupee Cash. Attempts To Stop Tax Evasion! WTF!
Indian banks are running out of replacement money after the government scrapped 86% of the cash in circulation last week. The BBC's Sanjoy Majumder travelled to northern Rajasthan to see how rural India, where cash accounts for almost all transactions, is coping.
It is 05:00 in Kirdola village, some 400km (250 miles) north-west of the Indian capital Delhi. Winter is setting in and there is a sharp chill in the air.
But very few people can be seen at the village square or the local teashop. The fields, which should be filled with farm labour at the onset of the sowing season, are empty.
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Instead, the action has shifted to the local branch of the Bank of Baroda where, already, there are about 50 people standing in a queue. Many of them are squatting on the ground, huddled together to stay warm, men on one side, women on the other. I join some people who have started a little bonfire. British holidaymakers in India have been advised to use debit and credit cards instead of cash to avoid the chaos of the country’s ongoing rupee crisis.
The Foreign Office has warned travellers that they face difficulties exchanging currency, withdrawing money and gaining change from small businesses, in the wake of Indian prime minister Narendra Modi’s shock move earlier this month to declare all 500 (£6) and 1,000 (£12) rupee notes invalid. India Cash Currency Banknote Rupee Rupees "India Rupee" People Crisis Ban "1000 Rupee" tax "tax evasion" economy life lifestyle food ATM Bank "Bank Account" Cashless Savings Farm Credit "Credit Card" Visa "India Visa" 2016 2017 money USD Tourism Tourist Rain Wealth Poverty Poor Supplies Prepare Community "New Deli" Indian Forex "Forex Trading" "tax free" "elite nwo agenda" jim rogers david icke alex jones gerald celente end game gold silver bullion sell buy bitcoin litecoin asset
New 500 and 2,000 notes are in circulation but in short supply, while there is a 2,500 rupee per card per day limit on ATM (automatic teller machine) withdrawals. If you have debit or credit cards, use them instead of cash where possible,” said the Foreign Office, adding that tourists should be able to exchange “foreign currency or old notes of not more than 5,000 rupees into legal tender”.
“If you’re exchanging money at a bank, take a form of photographic identification and expect long queues,” its updated advice stated. The move by the prime minister to scrap the 500 and 1,000 denominations was intended to crack down on corruption and illegal cash holdings but instead has spread panic across the country as millions of Indians found their money to be worthless within hours.
People flocked to banks and ATMs to withdraw cash and exchange the old notes, with police called in some areas to manage crowds.
Tourists in the country have described the situation to be “an absolute shambles”. It is estimated that half of the population does not have a bank account.
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Posted by Nicole Bourbaki