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Indian corruption clampdown
11 November 2016
In a shock move the Indian government ‘discontinued’ the 500 and 1,000 rupee notes without warning at midnight on Tuesday, in an effort to curb corruption, counterfeiting and terrorist financing.
Banks and cash machines were closed for 48 hours, reopening with replacement new notes. Everyone has until 30 December to exchange their old notes.
The scrapped denominations account for 86% of all Indian bank notes in circulation.
It has been claimed that businesses use cash to avoid paying taxes and in 2011 a study estimated that corruption had cost the Indian economy more than £320bn over the previous decade.
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