× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS
×

Currency changes akin to India’s bold move to mop up black money

NEWS
By Amos Kareithi | Jun 2nd 2019 | 1 min read
By Amos Kareithi | June 2nd 2019
NEWS

In November 2016, India’s Prime Minister Narendra Modi announced the withdrawal 1,000 and 500 rupee notes, exposing 1.3 billion people to months of agony and financial difficulties.

Indians, according to a January 4, 2017 CNN report, endured an acute cash shortage and massive lines at banks as they sought to exchange worthless notes for new currency. Change was nearly impossible to find. Some businesses resorted to barter.  

The new notes issued by the government were smaller than the ones they replaced and the more than 200,000 ATMs had to be remodelled to dispense the new notes.

The decision, aimed at cracking down on corruption, essentially targeted those who had been holding illegal cash. It was followed by bank closures and disabling of ATMs.  

“Black money and corruption are the biggest obstacles in eradicating poverty,” Modi said.

The move was described as a “surgical strike” on tax evaders in a country that is basically a cash-based economy. Economists estimated that the banned notes represented 85 per cent of cash in circulation in India.

India’s Finance Minister Arun Jaitley, at the time, assured the world that honest people would not be affected by the ban.

Following the withdrawal, the government introduced 2,000 and 500 Rupee denomination notes over a three-week period.

Share this story
Tedious journey to new currency that kicked off in 2010
The road to yesterday’s events stretches way back in the 19th century when Arabs introduced currency in the region
China rejected Kenya's request for Sh32.8b debt moratorium
China is Kenya’s largest bilateral lender with an outstanding debt of Sh692 billion.
.
RECOMMENDED NEWS
Feedback