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India raises withdrawal limit as rupee anger mounts | India raises withdrawal limit as rupee anger mounts |
(about 13 hours later) | |
The Indian government has raised the limit on cash withdrawals following widespread public anger about the surprise abolition of 500 ($7.60; £5.90) and 1,000 rupee notes last week. | |
Customers can now withdraw up to 2,500 rupees a day from cash machines, rather than 2,000, the finance ministry said. | Customers can now withdraw up to 2,500 rupees a day from cash machines, rather than 2,000, the finance ministry said. |
Many cash machines are not working because they have not been adapted for the new 500 and 2,000 rupee notes. | Many cash machines are not working because they have not been adapted for the new 500 and 2,000 rupee notes. |
Long queues at many banks were making it difficult to make withdrawals. | Long queues at many banks were making it difficult to make withdrawals. |
The government said Indian banks had received 3 trillion rupees ($44bn; £35bn) of large denomination notes since the move was announced on Tuesday night. | |
The abolition of the 500 and 1,000 rupee notes is intended to crack down on corruption and bring cash worth billions of dollars in unaccounted wealth back into the economy. | The abolition of the 500 and 1,000 rupee notes is intended to crack down on corruption and bring cash worth billions of dollars in unaccounted wealth back into the economy. |
The two notes accounted for more than four fifths of the currency in circulation and the change threatens to disrupt much of India's cash-driven economy. | The two notes accounted for more than four fifths of the currency in circulation and the change threatens to disrupt much of India's cash-driven economy. |
The government has also relaxed withdrawal limits from banks, removing the 10,000 rupees a day restriction and increasing the weekly limit by 4,000 rupees to 24,000. | The government has also relaxed withdrawal limits from banks, removing the 10,000 rupees a day restriction and increasing the weekly limit by 4,000 rupees to 24,000. |
The Reserve Bank of India urged people not to hoard cash, adding that rupees were available "when they need it". | The Reserve Bank of India urged people not to hoard cash, adding that rupees were available "when they need it". |
It has asked banks to report daily rather than fortnightly the amount of cash withdrawn and exchanged to give a more accurate picture of circulation. | It has asked banks to report daily rather than fortnightly the amount of cash withdrawn and exchanged to give a more accurate picture of circulation. |
Prime Minister Narendra Modi acknowledged the "pain" being experienced by millions but said the scheme was "not born from arrogance". | Prime Minister Narendra Modi acknowledged the "pain" being experienced by millions but said the scheme was "not born from arrogance". |
"This hardship is only for 50 days," he said in a speech in Goa on Sunday. "Please, 50 days, just give me 50 days. After 30 December, I promise to show you the India that you have always wished for." | "This hardship is only for 50 days," he said in a speech in Goa on Sunday. "Please, 50 days, just give me 50 days. After 30 December, I promise to show you the India that you have always wished for." |
Indians have until 30 December to exchange the now-defunct notes at banks. | Indians have until 30 December to exchange the now-defunct notes at banks. |
Since being elected in 2014, Mr Modi has pledged to crack down on "black money" kept hidden from authorities. The "black economy" could account for about a fifth of India's GDP, according to investment firm Ambit. | Since being elected in 2014, Mr Modi has pledged to crack down on "black money" kept hidden from authorities. The "black economy" could account for about a fifth of India's GDP, according to investment firm Ambit. |
His political opponents said they would unite to fight the abolition of the high denomination notes, which has made lives difficult for millions of ordinary people - particularly those without bank accounts who keep their savings in cash. | His political opponents said they would unite to fight the abolition of the high denomination notes, which has made lives difficult for millions of ordinary people - particularly those without bank accounts who keep their savings in cash. |
Mulayam Singh Yadav, leader of Samajwadi party, called on the prime minister to reverse his decision. | Mulayam Singh Yadav, leader of Samajwadi party, called on the prime minister to reverse his decision. |
"The government has spread anarchy in the country, the common man cannot buy daily products," Mr Yadav said. | "The government has spread anarchy in the country, the common man cannot buy daily products," Mr Yadav said. |
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