In a bold move to fight corruption, tax evasion, and counterfeit currency, India's Prime Minister Narendra Modi announced the demonetisation of the 500 and 1,000 rupee notes, starting at midnight. The decision aims to curb the black market, halt funding for terrorist groups, and disrupt the economy of untaxed cash transactions.
In a televised address, Modi emphasized that these high-value notes would no longer be accepted as currency, calling them “worthless pieces of paper” for those involved in illegal activities. He reassured citizens that they could deposit the notes at banks or post offices until the end of 2016, and there was no need for immediate action.
The move, which will affect a significant portion of India's parallel economy, is controversial and likely to anger corrupt politicians. It also highlights Modi’s ongoing efforts to tackle tax evasion, following the introduction of the goods and services tax (GST) and a prior income disclosure scheme.
Banks and ATMs were closed temporarily, and high-value notes would still be accepted in emergencies and hospitals. Modi’s announcement is part of his strategy to bolster India’s economy, which has seen growth and recognition from the IMF and World Bank.