Two weeks ago, the Indian Prime Minister, Narendra Modi, came on the evening news and made an announcement that would send shocks through the country. In the unscheduled televised address, Modi informed the public that in four hours, 500 and 1,000 rupee notes would no longer be legal tender. Two details of this startling law: first, people may deposit or change their old ₹500 and ₹1,000 notes in banks until December 30th, the day that new ₹500 and ₹2,000 rupee notes will be issued. Second, until then, people may exchange a small sum of old cash into legal tender of smaller denominations at banks—three days ago this amount was reduced from ₹4,500 to ₹2,000.
A National Cash Crisis in India
