ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Economy

Modi's currency crackdown leaves Indians cash-strapped

An effort to shrink the black economy is making life hard for ordinary people

 (placeholder image)
A woman holds 500- and 1000-rupee notes as she stands in a queue to deposit money inside a bank in the northern city of Kanpur.   © Reuters

NEW DELHI "We thought it was a matter of just 50 days!" lamented Suman Bhatt, a mother of two, who yet again was waiting in line for a cash machine, weeks into a banking crisis of the Indian prime minister's making.

At midnight on Nov. 8, Prime Minister Narendra Modi banned the use of 500- and 1,000-rupee bank notes, 86% of the money in circulation by value, to stop the flow of "black money," or hidden wealth. For Bhatt and millions like her, the botched execution of the reform -- not the crackdown itself -- has been maddening.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more