The government’s sudden withdrawal of Rs 500 and Rs 1,000 notes from circulation, in a bid to flush out money hidden from the tax man, caused chaos on Wednesday as gas stations and other retailers refused to accept the larger bills, and bank ATMs stayed closed. Read: Rs 500, Rs 1000 notes scrapped: 25 things RBI wants you to know“As far as the rural economy is concerned there is going to a huge dry up of purchasing power,” he said, adding there will be uncertainty over what notes will be accepted. Petrol stations and hospitals refused to accept the larger denomination banknotes, even though the government had given them a waiver to continue accepting the bills. Meanwhile bank ATMs were closed and many are likely to remain shut on Thursday as banks had to prepare for the flood of people seeking to exchange larger banknotes for smaller ones. Read: How to go cashless now that Rs 500, Rs 1,000 notes have been scrappedIn Mumbai, long lines formed at the privately-operated tolls at a major bridge traversing the city as the company, MEP Infrastructure, refused to accept 500 and 1,000 rupees notes.

Source: Hindustan Times November 09, 2016 05:37 UTC