*INDIA'S* Decision T0 BAN Large Denomination $--100,000's People In Lines @ Banks Very ANGERY

Wow, India thinks banning large denomination notes will uncover undeclared wealth.

I would imagine this will force people to run to the safety of hard assets, gold, platinum, silver and other tangle goods/property.

I hope this doesn't spread to the US and other nations.

NEW DELHI (Reuters) - Anger intensified in India on Saturday as banks struggled to dispense cash following the government's decision to withdraw large denomination notes in an attempt to uncover billions of dollars in undeclared wealth.

Tempers frayed as hundreds of thousands of people queued for hours outside banks for a third day to swap 500 and 1,000 rupee bank notes after the notes were abolished earlier in the week.

The banned bills made up more than 80 percent of the currency in circulation, leaving millions of people without cash and threatening to bring much of the cash-driven economy to a halt.

"There's chaos everywhere," said Delhi Chief Minister Arvind Kejriwal, a rival of Prime Minister Narendra Modi, accusing the premier of wreaking havoc on poor and working Indians while the wealthy found ways to skirt the new rules.

Customers argued and banged the glass doors at a Standard Chartered branch in southern Delhi after security guards blocked the entrance, saying there were too many people inside already.

Others turned on Modi, criticizing his ongoing visit to Japan while ordinary people suffered at home.

"He is taking bullet train rides in Japan and here you have old people knocking on bank doors for cash," said Prabhat Kumar, a college student who said he had spent six hours in the queue. "He has made a terrible mistake."

Modi said he would pursue the fight against corruption and tax dodgers even if it meant scanning decades-old records.

"If unaccounted money is found out during the current clean up drive, accounts of tax evaders dating back to the country's independence in 1947 will be checked. If required I will hire people for this task," Modi told the Indian community in Kobe.

He said he recognized people faced difficulties as the transition to the new series of bank notes takes place but was confident they would stand by the decision as part of the war against corruption and to rid India of endemic poverty.

TRADERS STRUGGLE AS CASH CRUNCH BITES

Nearly half of India's 202,000 ATMs were shut on Friday and those that operated quickly ran out of the new notes as scores of people descended upon them.

Finance minister Arun Jaitley said ATMs had not been adjusted to handle new currency notes prior to the announcement in order to keep it under wraps. "Recalibration of ATMs will be completed within two weeks," he added.

Referring to inconvenience caused to public, Jaitley said there could be some, short-term disruptive cost to the economy due to the demonetization drive but this would prove positive in the longer term.

Traders in Delhi's vegetable market said they were considering shutting down the market as cash was running out and banks were dispensing a limited amount.

www.yahoo.com...

Does India suffer from high inflation? It says that the banned bills account for 80% of bills in circulation, and it would make sense if it was one of those places where a loaf of bread cost a billion rupees or whatever. And, in that case, no longer having 500 and 1000 denominations will severely slow down purchases and make people even more angry.

A poor decision, trying to audit the book for a lifetime. No one keeps records that long. It would be smarter to change currency's as many governments have done.

a reply to: Nickn3

They will force people to the black market/other stores of wealth.

a reply to: seasonal

Meanwhile any Bitcoin ATMs in India will be stuffed to the brim with India's new junk money.

a reply to: fractal5

People vote with their feet.

India Participated in the BRIICS bank, what relation might there be with this?

Is it because of a shrinking tax base due to international exclusion by IMF?

originally posted by: seasonal
a reply to: Nickn3

They will force people to the black market/other stores of wealth.

I agree. This is foolish economics.

Some sense might be there, if other leaders would be so brave the world might be different, at least he is trying, ______beforeitsnews/india/2016/11/pm-modis-service-for-india-and-importance-of-service-commonly-2449359.html