On November 8th, India’s Prime Minister Narendra Modi announced that 86% of the country’s currency would be rendered null and void in 50 days. Modi’s crackdown will see all 500 and 1,000 rupee notes — the country’s most popular currency denominations — removed from circulation, while a new 2,000 rupee note is added in. When making cash-for-cash exchanges, it has been reported that people are often solely being given the new 2,000 rupee notes ($30), which are reputedly extremely difficult to get change for. India’s economy is powered by the cash-centric informal market, which is responsible for roughly 45% of GDP and 80% of employment. By turning off the engines which drove the informal economy, India hopes that more people can be brought into the fold by using track-able — and taxable — digital financing vehicles, like debit cards and e-wallets.

Source: Forbes November 26, 2016 00:43 UTC