Nearly 40% of India's economy is driven by small- and medium-sized enterprises that largely run on cash transactions. Economists said the move could impact these businesses, and in turn have a knock-on effect on economic growth. Delhi taxi driver Anu Choudhury said his boss called to say he should not accept 500 or 1,000 rupee notes from customers. Modi said militants operating against India were using fake versions of the 500 rupee note, worth about $7.50 at current exchange rates. The growth in 500 and 1,000 rupee banknotes was even steeper; 500 rupee notes grew 76% between 2011 and 2016, while in the same period, 1,000 rupee notes rose by 109%.

Source: dna November 08, 2016 17:59 UTC