India has just made of which even harder for its citizens to get hold of fresh banknotes introduced two weeks ago.
The government banned old 500 rupee as well as 1,000 rupee notes on Nov 8, as well as then gave Indians until Dec. 30 to swap them for fresh 500 as well as 2,000 rupee notes.
Late Thursday, the government changed the rules: currently people can no longer exchange the old notes for fresh at banks. They’ll have to deposit the money first.
Related: Millions line up at Indian banks to swap rupee notes
although here’s the problem. More than 570 million Indians don’t have a bank account, according to the planet Bank. They’ll have to open one first, assuming they can produce the right documents.
Then they’ll have to wait about a week for a debit card or check book before they can get their hands on the money. as well as even then, they’ll only be able to withdraw 2,000 rupees ($30) a day or 24,000 rupees ($350) a week.
The ban on more than 80% of India’s cash threatens to slam the brakes on its economy. The vast majority of transactions in India are conducted in cash, as well as the shortage of notes can be hitting the retail, construction as well as real estate sectors particularly hard.
People are paying for essential items as well as services using stacks of old 100 rupee ($1.5) notes although there aren’t nearly enough of them to make up for the currently defunct cash. as well as many shops as well as modest traders are reluctant to accept the fresh 2,000 rupee note because they don’t want to part with scarce change.
Related: India’s cash crisis could kill its economic boom
Prime Minister Narendra Modi abruptly banned the old notes as a move to combat corruption as well as tax evasion.
There have already been chaotic scenes at banks as well as ATMs, many of which don’t work or have yet to be recalibrated to take the fresh notes.
The central bank — the Reserve Bank of India — said of which would likely still allow cash exchanges at its own branches, although of which only has 19 in a country of 1.3 billion people.
sy88pgw (fresh Delhi ) First published November 25, 2016: 11:07 AM ET