One of India's pressing problems is the presence of a large amount of "dirty money" in the country - i.e. funds obtained by criminal means, from which taxes are not paid. The country's current Prime Minister Narendra Modi promised to put an end to this evil, and he fulfilled his election promise, albeit very unexpectedly for the nation.
On November 8, 2016, Narendra Modi went on television to announce that all Rs 500 and Rs 1,000 banknotes (which are believed to be the main "dirty money") will be withdrawn from circulation; new bankrupts in denominations of 500 and 2,000 rupees will be printed instead. Old banknotes can be exchanged at banks for new banknotes until December 30, 2016, after which they become completely invalid.
... November 29, I landed in Delhi - my three-week Indian vacation began. I spent the rest of the 100 rupee bills on the road from the airport to the house of friends with whom I was supposed to stay. By noon on the first day, I discovered what I could have learned earlier from the Internet: due to the abuses associated with the exchange of money, the exchange itself was canceled as such: it became possible only to deposit old banknotes of 500 and 1000 rupees into your bank account, change them more impossible.
An attempt to change dollars was also unsuccessful - not a single bank or store found those willing to exchange them, the standard answer is "no cash." I was greeted with exactly the same inscriptions by Delhi ATMs, to which I went, armed with a credit card. The old banknotes were canceled in the country, but new ones have not yet been printed in sufficient quantities. To the ATMs, in which the cash still remained, many meters long queues stretched, repelling any desire to join them. In addition, I was haunted by the thought of the old banknotes I had - in a month they would be canceled, they had to be converted in some way before that.
And I went to open an account in an Indian bank. She explained the purpose of opening an account: to change the old banknotes that I have accumulated; the source of these is my previous Indian internship. The graceful woman in a bright sari who received me was extremely polite, having carefully studied my documents, asked me to wait, and after 10-15 minutes I was taken to the office of her supervisor, where both ladies informed me that, since I had arrived on a tourist visa, I can open an account in the country - but only a tourist one. This is what I needed! I was shown the lists of documents required for this, my victorious mood dropped somewhat, but, in any case, everything was quite real. The ladies looked at each other and with a sympathetic smile explained to me that since this is a tourist account, only foreign currency can be put there. "What should I do?" Another friendly look and a sympathetic smile. "Change through friends! Let them put it on your account."
I left the bank, trying not to think about what I would do if I didn't have friends here, so I turned to them. By the end of the week, I was already the proud owner of several bright pink fresh bills. And although half of my old money still required adoption, life was clearly getting better, and I went to travel around Rajasthan. In Jaipur, the magnificent capital of this huge state, I enriched myself with a pile of 20 rupee notes: no other change for a new two thousandth note was found in the hotel where I was staying, but such an acquisition made me very happy. In the days of the reform, the one who had a large amount of change felt truly rich: most of the ATMs dispensed only large bills, which were extremely difficult to change ... Over the next week, the newly acquired twenty came into my hand whenever I put myself in my bag for keys or in a backpack for a book, and inspired me with a sense of my own wealth and solvency. As we moved through the expanses of the Thar desert, these twenty-rupee deposits gradually dried up, until at last dawn in Jodhpur found me at the station, tired after a long journey, sleepy and with the last five twenties in my wallet. They, however, turned out to be quite enough to get to the booked hotel, hidden in a tangle of streets of the old city. At the hotel, the first thing I did was declare my deplorable financial condition, and then, albeit at great loss for me, the owner exchanged some of the old banknotes, which allowed me to comfortably spend the next four days of my vacation in the blue city of India. The rest of the money was exchanged for me by friends in Goa. My short journey, spiced with an unexpected money adventure, has come to an end.
The current monetary reform is not the first such reform in the country; in 1946, the Indian government withdrew the 1000 and 10,000 rupiah banknotes from circulation, and then in 1954 issued new 1000, 5000 and 10,000 banknotes. However, in 1978 these new large banknotes were withdrawn from circulation under the pretext of fighting counterfeiters and shadow turnover.
On the eve of the current reform, in October 2016, the total amount of banknotes in circulation in India was 17.77 trillion rupees. Approximately 86% of them were denominations of 500 and 1000 rupees.
The growth in the number of banknotes in denominations of 500 and 1000 rupees was associated, in particular, with the activities of counterfeiters, it was believed that the proceeds from the distribution of counterfeit money were used, among other things, to finance terrorists. Despite the fact that the very remedy for these evils is reminiscent of shock therapy, which both Indians themselves and tourists felt on themselves, the absence of any large-scale protests against the reform suggests that, in general, people are ready to wait for its results.
Interestingly, the very rough implementation of the new reform as a whole made people imbued with a sense of camaraderie towards each other. You sympathize, you sympathize with others. Everyone understands each other. One evening I tried to catch a tuk tuk home, it was rush hour, the driver and I bargained for a long time, finally he gave up: "OK, 100 rupees!" - me: "No, 90!" - "Ma'am, only 10 rupees difference!" - "I do not have it anymore!" His expression immediately changed from one of condemnation to one of sympathy. Without further argument, he drove me home.
Xenia Maretina
The queue at the bank branch in Kolkata for the exchange of banknotes November 10, 2016 // by Biswarup Ganguly
Indian Prime Minister Narendra Modi on November 8 announced the start from scratch on November 9, 2016 of the currency reform under the motto "Pure Rupee". In his address to the nation, N. Modi outlined its main goals - the eradication of corruption, the withdrawal of capital from the shadows, the increase in tax collection, the fight against terrorism.
In the third year of Narendra Modi's premiership, the Indian economy continued to develop with a GDP growth rate of 7.3-7.5%. This indicator remains one of the highest in the world economy, although it was not possible to reach 7.9%, as previously assumed. There was no noticeable growth in industry, respectively, shifts in the structure of GDP. The government continues to enjoy the support of the majority of the population, including the growing urban middle class, thanks to the high popularity of N. Modi. However, the ruling Bharatiya Janata Party (BJP), as in previous years, was unable to pass through the upper house of the Indian Parliament a law on taxes and fees levied on suppliers of goods and services when crossing internal borders between states. The adoption of this law will create a single giant market, revive domestic trade and increase tax revenues to the federal budget. As has become the rule under N. Modi, this task is reflected in the slogan: “Make in India by making one India”, (“Produce in India, creating a single India”). The Indian National Congress Party (INC), the main opponent of the BJP, has been preventing the adoption of this law for several years, protecting the interests of the growing local elites. Certain difficulties for the government arose in connection with the poor harvest of legumes, which required an increase in their imports. The recently adopted amnesty of capital withdrawn earlier from the country did not bring noticeable results. The state of the economy is negatively affected by the reduction in export earnings due to the recession in the world economy. India is in dire need of an influx of foreign direct investment.
Against this difficult background, after a long break in India, another monetary reform began. The previous reform, with the withdrawal of large denominations of 1000, 5000 and 10000 rupees, was carried out in 1978, then the Indian economy was typically agro-industrial with a traditional service sector. The declared goals of the current reform are necessary for the further development of the country, but are difficult to implement due to the objectively prevailing conditions. Corruption in India is not an independent phenomenon, but a stable system penetrating the economic fabric of the country. As a socio-economic factor, it is intertwined with traditions and modern market relations. The same can be said about the shadow economy. Its extent in India is not precisely defined, as in most developing countries. The World Bank believes that the shadow sector in India is 25% of GDP, also called an indicator of 30-35%. The "shadow" employs a significant part of the labor force, the production of goods and services, non-taxable cash flows. Only 2% of the population officially pays taxes in India. In 2014/15, the tax shortfall was about $100 billion. It is the shadow sector that is an important source of funds for criminal structures, as well as terrorist groups. The “hit on the black market”, as the 2016 reform is described in the press, has specific, but difficult to implement tasks.
The monetary reform terminates and withdraws from circulation the largest and most common national banknotes of 500 and 1000 rupees (at the rate of 480 and 960 rubles), which account for 86% of the total money supply in the country. They have lost their purchasing power and are withdrawn from circulation by the state. On the night of November 9, 2016, the procedure for converting old national banknotes into new ones came into force, which became slightly larger in size, brighter in color and retained the portrait of Mahatma Gandhi. According to the exchange rules, Indian citizens hand over money that has gone out of circulation to banks, presenting an identity card, and receive new banknotes in denominations of 2,000 and 4,000 rupees, which have become the largest in the country's money line. The upper exchange limit was originally capped at 4,000 rupees, but was raised almost immediately to 4,500. Large deposits must be filled out with a detailed form indicating the source of their origin for verification by the Indian tax authorities. Up to 10,000 rupees could be withdrawn from personal bank accounts, soon the amount was increased to 24,000 new rupees at a time. ATMs give out no more than 2,000 new rupees, but many of them do not work for objective reasons. In total, there are about 200 thousand ATMs in the country, and it is impossible to reload them in a short time. The exchange procedure, as announced, is valid until December 30, 2016.
It is hard to hope for a conflict-free implementation of a reform of this magnitude in a country whose population, according to the latest data, exceeds 1,300 million people. Their reaction was predictable, but no less difficult for that - panic, giant queues, crush, even fights at the entrance to banks. Trade, primarily retail, the most massive type of sales in India, has stopped due to the refusal of sellers to accept old banknotes and a lack of change money. Banks called in additional employees, began to work seven days a week, established separate queues for different categories of citizens, the elderly, the disabled, bank card holders, etc. Long before the current reform, one of the directions of N. Modi's financial policy was an attempt to accustom the population to use bank cards, electronic means in order to withdraw money from the shadows, to facilitate state control over their flows. Therefore, the owners of bank cards received some advantages during the exchange of money during the current reform. The press started talking about a possible preliminary leak of information, referring to the fact that in July - September 2016 in the state of Gujarat, in which N. Modi held the post of governor for two terms, there was a peak in the opening of new bank deposits. During the first 4 days of the reform, 184 million transactions were made in banks. Remembering the experience of election campaigns, the heads of banks, in order to avoid repeated exchange transactions by citizens in different bank branches on the same day, which was prohibited by the reform rules, ordered to mark the hands of citizens who received new banknotes with indelible ink. As it turned out, this did not become an obstacle. Wealthy clients with large amounts of old money formed groups of the poor and, for a small fee, under the control of trusted people, carried out exchange transactions in banks through them. (A kind of association of corruption and shadow activity). The difficulties are exacerbated by the relatively weak expansion of bank branches in rural and hard-to-reach areas. The main burden fell on large cities. Newspapers began to publish residents' complaints about long queues, the impossibility of exchanging money after standing for 6-8 hours. The dollar has jumped sharply, and gold has risen in price. N. Modi urgently appealed to the citizens of the country, asking them to calm down and give him 50 days to solve problems with the exchange of money. He assured that the Reserve Bank of India (RBI), the regulator of money circulation in the country, controls the situation, there are no problems with the amount of the national currency. To alleviate the situation a little, it was urgently allowed to accept old banknotes at airports, railway stations, gas stations, hospitals, during cremation. But these measures did not calm the population. Predictions of mass unrest appeared in the Indian press as a consequence of the reform. But it seems that the Indian government, although not expecting such a surge of discontent, is coping with the situation without allowing serious social disruption.
A “day of wrath” has passed in India: protests are growing in the country against the withdrawal of banknotes in denominations of 500 and 1 thousand rupees from circulation. The authorities explain the reform by the fight against shadow companies, but rather, it can strike the entire economy
People near a bank in the Indian city of Ahmedabad. November 29, 2016 (Photo: Reuters/Pixstream)
Hitting the cabinets
A third of the country lined up at the exchange offices, the rest would also stand up, but there is nothing to get to the banks. Taxi drivers are paid with groceries. Real estate sales, retail, construction, trucking have all plummeted, and what will happen to other industries remains to be seen. The rich ask the poor for help. Dozens of people lost their lives.
This week, many lost their patience - on Monday, November 28, a "day of wrath" passed in large cities. In Calcutta, according to Al-Jazeera, 25 thousand people took to the streets, in Mumbai - 6 thousand. This is not much by Indian standards, but given that the government promised to normalize the situation only by the New Year, the protests can still go on more serious level.
Prime Minister of India Narendra Modi achieved such results, on the evening of November 8, that banknotes of 500 and 1 thousand rupees (the exchange rate against the dollar is about the same as that of the ruble) are out of circulation from midnight. These are the two largest banknotes and account for 86% of Indian cash. Modi calls them black cash - the main means of payment for corrupt officials, organized crime, those who evade taxes, terrorists. Maybe that's how it is. But it is also the main means of payment in construction, trade, the service sector and, most importantly, in agriculture, whose workers do not find it easy to get to banks or post offices and exchange their five hundred and thousand in a timely manner.
The terms are as follows: until November 24, 4 thousand rupees could be exchanged for smaller or new bills at any bank or post office, presenting an identity card. Of these, only 2 thousand can be received in cash, the rest will go to the account. Until December 30, banknotes can be deposited into a bank account in an unlimited amount, but if the amount is more than 250 thousand rupees, you must indicate its source (and it will be possible to withdraw no more than 20 thousand per week). There were exceptions - for humane reasons. Within 72 hours (then extended until November 24), obsolete banknotes could be paid in public hospitals, for railway, bus and gas stations of state oil companies, in cooperative stores and dairy points, as well as in crematoria and cemeteries.
During the return of old banknotes in the city of Kanpur (Photo: Reuters/Pixstream)
Life failed
Unfortunately, in these last two places, some Indian families who have lost relatives due to a sudden reform have added their depreciated money. By November 18, The Indian Express had collected three dozen such examples. The most typical death is in line at the bank or at the ATM. Lots of suicides. They did not manage to take someone to the hospital (including children) - there was no small money for a taxi. Someone died of a heart attack while listening to the Prime Minister's speech, for example, a farmer who had just sold his land for 7 million rupees (probably never found out that nothing threatened his legal income). One man killed his wife when she returned from the ATM with nothing - they were swept clean, since the old cash was no good, besides, there was a limit of 2 thousand rupees from the card per day (then increased to 2.5 thousand).
But these are extreme cases. How do India's 1.2 billion people generally react to cash withdrawals? Oddly enough, generally welcome. “What Modi has done is good for the country,” says Bharti, a 30-year-old maid with a salary of 8,000 rupees a month. In October, she received everything in five hundred rubles, 2 thousand were exchanged for her, but this is not enough for the household. Her husband is a taxi driver, he used to earn 1 thousand a day, now three times less. They have two children, they have to pay 1,000 a month for their school, so now they don't go to school. And so Bharti, praising the prime minister, adds: “But we barely have enough food for the children. How can we have black money?”
In a similar vein, tea shop owner Upadhyay, whose income has fallen by 70%, is why he won't send anything to children in Uttar Pradesh: "But in the end, the result will be favorable." That is, on the one hand, it’s hard for us now, although we didn’t deserve it, but on the other, the idea is right.
Prime Minister Modi himself was probably counting on just such a reaction from the poor majority. “The abolition of five-hundred and thousand-dollar notes caused you inconvenience,” he said at a recent rally. “But some have their whole lives ruined—that’s how I punished them. Because they robbed the poor, the middle class. They were stealing your money for their business. That's why I started this fight."
Seven monetary reforms
Russia, 1993
The banknotes of the USSR were withdrawn and the banknotes of the Russian Federation were introduced. The exchange took place between July 26 and August 7, 1993. From September 26, 1993, the circulation of banknotes of the USSR was prohibited.
During the reform, 24 billion banknotes were seized. The national currency was put into circulation.
Russia, 1998
The currency denomination was 1:1000. The exchange of banknotes and the parallel circulation of the old and denominated banknotes continued until 2003.
The result of the reform was a decrease in the nominal amount of money circulation, the actual return to circulation of coins that had ceased circulation as a result of devaluation.
Ukraine, 1996
A presidential decree announced the introduction of the national currency - the hryvnia. The coupons circulating in the country were exchanged against the issued hryvnia in the ratio of 1:100 thousand. The result of the reform was the creation of the national monetary system of Ukraine.
European Union, 1998-2000
In 1998, the European Central Bank was created to develop and implement a common monetary policy of the union.
In 1999, the European currency, the euro, was introduced into non-cash circulation, and the Economic and Monetary Union was created. Since 2002, the euro has been in cash circulation. Currently, this currency is used in 18 countries. The creation of a single European monetary system has been completed.
Armenia, 2003
Banknotes in denominations of 25, 50, 100, 500 drams were replaced by coins. 10 thousand AMD banknotes were also introduced and 1000 and 5000 AMD banknotes were modified. The result was a reduction in the cost of manufacturing banknotes.
Turkey, 2005
The denomination of the national currency was carried out in the ratio of 1:1 million. New banknotes were put into circulation and old ones were withdrawn from circulation from 2005 to 2009. As a result of the reform, the scale of prices was changed, and the cost of manufacturing banknotes decreased.
Venezuela, 2008
The denomination of the national currency was carried out in the ratio of 1:1000. The reform was carried out under the slogan "Strong economy, strong bolivar, strong country". Since the reform, the national currency has fallen several times. To date, the devaluation at the official exchange rate against the US dollar compared to 2008 is 365%. At the same time, on the black market, the exchange rate of the bolivar is much lower than the official one.
Everything that is acquired
Envy and gloating are Modi's trump cards in this campaign. Servants happily retell each other how their masters reacted to the thunder from a clear sky: hands on hearts, howling wives, swearing over how to get rid of forbidden banknotes, despair. With these anecdotes, writes The Sydney Morning Herald, servants have fun standing in lines at banks to deposit 250 thousand (without a declaration) into their accounts. They themselves have never seen such sums in their lives - it was the owners who begged them to save their lost savings in this way. Unselfishly, of course, for 10%, or even 25%.
It suddenly turned out that the rich are able to politely ask ironers, fruit and flower sellers, and drivers for something. To 25-year-old Rahul Sharma on November 9, the owner first addressed "dear", told the maid to bring him tea. Previously, I didn’t even remember his name, he called “the driver”, sometimes, letting go at midnight, he demanded to come by 6 in the morning. On the third day, the owner split: would you deign to put my 250 thousand on your account. “I refused,” Sharma says. “I don’t want someone to ask later where I, a simple driver, get that kind of money.”
But how many servants do you need to have, how many street vendors can be persuaded to deposit millions, tens of millions in their accounts? The police have already stopped cars full of suitcases with thousand dollar bills - these are the drivers who carried the master's money to their distant relatives.
Some rich people are smarter than others. One town gas bottle dealer in Uttar Pradesh told The Wall Street Journal how he squandered his 7 million rupees. Half a million managed to be attached through acquaintances in banks - they agreed to carry out transactions retroactively, when large denominations had not yet been withdrawn from circulation. Another 35,000 was exchanged for him by a priest in one church. He also paid his 40-plus employees months in advance. “My security guard was happy,” says the businessman. And I didn’t have to put anything on other people’s accounts.
Protests in New Delhi against the withdrawal of banknotes in denominations of 500 and 1 thousand rupees. November 28, 2016 (Photo: Reuters/Pixstream)
Who got hurt
It turns out that the rest of the alleged victims targeted by the prime minister can also cut their losses. And this is good, notes The Wall Street Journal. Because a very powerful blow has already been dealt to many sectors. After all, 98% of purchases by Indians, according to PricewaterhouseCoppers, have so far been made for cash, and now almost all cash has been withdrawn, and they will not be returned immediately, but gradually.
There are no restrictions on non-cash payments - by checks, cards, etc. But half of Indians don't have bank accounts. And among those who have them, half of them almost never use them. In addition, in rural areas, even an ATM is a rarity: 18 per 100,000 adults, not to mention bank branches. And the majority of the population lives in the villages - from 65 to 75%. They now have no time to get to the banks - just the sowing season. And
The denomination in India, on November 9, 2016, began unexpectedly not only for local residents but also for tourists. For the Russians, the ongoing events may remind the "Pavlovian reform" carried out in 1991 in Russia. The ban applies specifically to banknotes of 500 rupees and 1000 rupees.
Money exchange in India in 2016. History reference.
At 9 pm on November 8, when all the shops were closed, banks and other financial institutions also closed, Indian Prime Minister Narendra Modi addressed the Congress and all Indian people with a message that from this very moment a ban on payment and reception was introduced throughout the country. 500 and 1000 rupees and for the benefit of India there will be a massive exchange of old 500 and 1000 notes for new 500 and 2000 rupees. From midnight on November 9, ATMs stop working, and banks begin to exchange old banknotes for new ones.
Old denominations of 500 and 1000 rupees are withdrawn from circulation in exchange for new 500 and 2000 rupees.
Old 500 Indian rupees. Prohibited for use.
Old 1000 Indian rupees. Prohibited for use.
New banknote 500 Indian rupees.
New banknote of 2000 Indian rupees.
Narendra Modi is conducting an exchange with the aim of withdrawing "black" cash from circulation, reducing counterfeit money in the country and one of the goals is to fight corruption and terrorism in the country. 
But if you do not delve into the local political and economic complexities, only one question remains:
How to survive in a foreign country when you have cash in denominations of 500 and 1000 rupees?
The withdrawal from circulation of banknotes of 500 and 1000 rupees in India has already happened and nothing can be done about it, many tourists and foreigners have literally become hostages for the following reasons:
- Travelers generally carry money with them, as banks, ATMs or card payments are not easily accessible in all regions.
- Not all tourists follow local news.
- ATMs stopped working on the night of November 8 or where they worked continued to issue 500 and 1000 banknotes, but on the morning of November 10 they were simply closed.
- Banking operations stopped working before even Modi could finish his speech.
- Tourists and foreigners became victims of circumstances, as locals who knew about it increasingly gave change in banknotes prohibited for payment.
What solutions are there and how can a tourist survive during a denomination in India?
Everything is very simple, at first glance. In fact, this complicates your stay in India in 2016, especially if you come for 1-2 weeks.
- Try to pay only with bank cards, for example, to use local taxis such as Uber or Ola, it is enough to replenish your PayTM wallet and pay for trips from your e-wallet (this is an analogue of the Russian QIWI).
- Old banknotes are subject to exchange only in banks (if the amounts are large).
- Also, amounts up to 4000 rupees are subject to exchange at all state Post Offices.
There are, of course, other illegal ways, such as exchanging money at exchange offices, markets, or with local businessmen, but as a rule, you will have to pay for this exchange at a very rigid rate. Now the exchange rate is such that for the old 500 rupees you can get no more than 200-300 rupees.
Not fair, but many foreigners and tourists simply have no other option.
Always ready to answer your questions in the comments. Are you personally, your family or friends affected by the exchange of rupees and how did you resolve the situation with the exchange? Share your experience!
UPD from 11/19/2016: The queues have not decreased, there is still no cash in ATMs, but when they appear, large queues instantly form. Banks have problems with cash, more and more often people are faced with a situation where it is possible to put money into a deposit account and the limits have been increased from the original 45,000 rupees, but without exchanging for new banknotes of 500 and 2000 rupees. ATM limits are still maintained: 2500 rupees per day, 10000 rupees per week (not earlier than 7 days after the last transaction), 20000 rupees per month. As of November 21st, ATM cash withdrawal limits are raised to Rs 4,000 per day.
NEW DELHI, November 10 - RIA Novosti. Banks and post offices in India have begun issuing new 2,000-rupee banknotes (1,917 rubles) following the sudden withdrawal of 500 and 1,000-rupee banknotes from circulation.
On Tuesday evening, Prime Minister of India Narendra Modi, in an address to the nation, said that from 00.00 on Wednesday, banknotes of 500 and 1000 rupees, the largest banknotes in circulation, were withdrawn from the money circulation. The decision is explained by the need to fight corruption, the shadow economy, counterfeiters and the financing of terrorism.
Banks opened their doors
On Wednesday banks in India did not work in connection with the preparation for the issuance of new banknotes. On Thursday morning, queues began to form at the banks. At the same time, there is no chaos in the first hours of work of financial institutions. At least this is the situation in the shopping district of Connaught Place in the center of New Delhi. According to the observations of the correspondent of RIA Novosti, people line up - both outside and inside the banks - they behave calmly and friendly. The order is provided by police officers - also inside the banks and outside.
In order to receive new banknotes, it is necessary to fill out a questionnaire indicating the name and surname, the amount to be exchanged, indicating how many banknotes of each denomination the client intends to exchange (the amount for one exchange should not exceed 4 thousand rupees), indicate in which bank branch the operation was carried out exchange. If the client plans to deposit money into the account (this way you can get rid of old banknotes in the amount of more than 4 thousand), then you need to fill out a more detailed questionnaire. Such formalities are necessary to control the progress of withdrawal of currency by the Reserve Bank of India.
A copy of the certifying document is attached to the application form. At the entrance to the bank, documents are checked, copies of certificates are checked against the originals, after which a seal is placed on the verification. After that, the client joins the queue either for an exchange or for a deposit. The whole process takes a lot of time. So, it took a RIA Novosti correspondent an hour to do this, but it can be done faster - it depends on the coherence of the bank's work and the number of customers.
At the same time, only 2,000 rupee notes are available, although the Ministry of Finance has promised that the new 500 rupee notes will also go into circulation on Thursday. As the manager of a branch of one of the largest banks in India explained to RIA Novosti, it was expected that this would happen, but today they are not in banks. According to him, "they are on the way" and will most likely be available from Friday. Thus, even having received new banknotes of two thousand rupees, the Indians' money problems will not disappear yet - they simply will not be able to give change in stores.
Rostourism asks Russians to take care of the payment method in India in advanceIn India, banknotes of 500 and 1000 rupees are withdrawn from the money circulation - the largest banknotes that were in circulation. Russians in India will be able to pay with bank cards, since there are no restrictions on non-cash payments.In addition, according to incoming information, some banks have already run out of new banknotes with a face value of two thousand. They began to issue stacks of banknotes of 100 rupees in exchange for old banknotes, that is, when exchanging the required 4 thousand, the client receives 40 banknotes. In other banks, the situation is the opposite - there are only new banknotes of two thousand, and there are no more banknotes of 100 rupees.
The banknote itself looks unusual against the background of other banknotes and its "younger predecessors" that have gone down in history. The Indian authorities have chosen magenta (magenta) as the main color for the new two thousand rupees. The bill also differs in size - more compact compared to the seized banknote of a thousand rupees. In addition, the degree of protection has been upgraded, new watermarks have appeared.
The front side traditionally depicts Mahatma Gandhi, the leader of the Indian independence movement from British colonial rule. On the reverse side is the Indian spacecraft Mangalyan, which was successfully launched into Mars orbit in 2014. It was India's first interplanetary space mission.
