2 min read.Updated: 25 Nov 2016, 07:58 PM ISTReuters
The Modi government and the RBI have since taken a slew of measures since the 8 Nov demonetisation announcement. Here's a guide
Mumbai: Prime Minister Narendra Modi shocked the country on 8 November by the demonetisation of Rs500 and Rs1,000 notes, which accounted for 86% of the cash in circulation. The move was aimed at cracking down on the shadow economy, but has brought India’s cash economy to a virtual standstill.
The government and the Reserve Bank of India (RBI) have since taken a slew of measures to manage the shortage of cash in the economy as a result of demonetisation. They are detailed below:
- RBI says old currency notes can be exchanged at RBI branches
- Government stops over the counter exchange of old banknotes; can only be deposited
- Government to ensure adequate cash supply for pensioners, armed forces personnel
- Allows certain payments in old 500 rupees notes including at tolls, hospitals for limited time