The 2000-rupee note was banned in India after the country’s prime minister Narendra Modi claimed it was being used to fund terrorism.
India has banned the 2000-rupee note in an effort to crack down on corruption. The high-value banknote has been in circulation since 2005, but Prime Minister Narendra Modi made a surprise announcement on November 8th that it would be removed from circulation within hours. The sudden decision caused chaos and confusion across the country, with long queues forming at ATMs as people tried to get their hands on smaller denomination notes. There have also been reports of violence as people have clashed with police and bank staff over the issue.
Why did India ban the 2000 rupee note?
The government claims that it is trying to crack down on corruption and terrorism. PM Modi said in a speech that “the government has decided that the five hundred and thousand rupee currency notes presently in use will no longer be legal tender from midnight tonight”. He said they would be replaced by new 500-rupee and 2,000-rupee notes, adding: “This step will strengthen the hands of the common man in the fight against corruption, black money and fake currency.”
Why was this move so controversial?
Many people were left confused by PM Modi’s decision to ban such a large denomination note without warning or preparation. It is also feared that many ordinary citizens who don’t have access to banks could lose out as a result of this sudden change.
