Friday, 30 December 2016

Demonetisation: Cash crunch making some in Modi's party anxious

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Cash shortages weeks after Prime Minister Narendra Modi's decision to abolish large currency notes are making allies and members of his ruling party anxious, with some distancing themselves from the move ahead of a series of state elections.
Modi removed 500 and 1,000 rupee notes, worth around $7.50 and $15 respectively, on Nov 8, billing it as an attempt to root out corruption, end terror financing and move the country into the age of digital payments.
He promised to replace all old bills with enough new currency notes by the end of this month. But his government has struggled to do that, leading to long lines at banks and a slump in economy activity. Nearly 90 percent of transactions in India used to be in cash.

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14th BRICS summit to review current global issues, reach key agreements

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