India Withdrew 500 And 1000 Rupee Banknotes Last Night

Is there a Link for this?

Thanks, a very interesting article..
I remember when the Nixon Administration requested all the Banks turn in $500.00 & above U.S. Notes and withdrew them (I'm guessing) around 1969 from circulation, saying this would help curtail the Drug Epidemic in the U.S. back then..

(Maybe the Woodstock Concert scared him)

The 500 and 1000 rupees are the largest notes in India. The 1000 is being replaced by a new 2000 note. The demonetization is not an attempt to curtail new cash activities. It is an attempt to nullify cash hordes. Most people in India don't pay taxes. They do not pay sales tax, employment tax. Most work for cash and buy goods with cash.

They have safes in the homes or cash in safety deposit boxes because they cannot deposit untaxed cash in banks. Last year the government offered an amnesty for large cash deposits as long as a 45% of the deposited amount was paid in tax. I am sure no one took them up on the offer.

Dec 31 is the deadline for deposits. People will be desperately trying to convert the 500 and 1000 into 100s and smaller or trying to get multiple people to make small bank deposits on their behalf.

I believe that the value of the 500 and 1000 notes for collectors will go down significantly. Not now but next year after the deadline.

There is no way that millions of rupees can be laundered in 2 months.

My dilemma is that I am flying to India this week and cannot get money before we go. No currency exchanges in the US will sell India notes until this is sorted out. Bringing credit cards to use at hotels. Silver to barter and lots of my own food. Hoping that when we layover in Europe to find people coming from India who have small bills to trade. Any other ideas?

Another brilliant move by a politician.