17 Nov 2016
INDIA: High Value Notes No Longer Legal Tender in Crackdown on Corruption and Tax Evasion
As part of its bid to curb corruption and tax evasion, the Indian government has made good on its promise to take the existing INR500 (US$7) and INR1000 notes out of circulation. The notes ceased to be legal tender on 9 November, with new INR 500 and 2000 notes having now been formally introduced.
With the former notes having accounted for some 85% of the cash in circulation, the country is expected to face liquidity problems for 50 days or so before the situation stabilises.