Rupee shake-up back in focus for state polls

The poor execution of demonetisation two years ago led to a cash crunch in India that resulted in lower spending and long bank queues. It hurt the informal sector, with hundreds of migrants losing their jobs in a cash-dominated economy.
The poor execution of demonetisation two years ago led to a cash crunch in India that resulted in lower spending and long bank queues. It hurt the informal sector, with hundreds of migrants losing their jobs in a cash-dominated economy.PHOTO: REUTERS

India's Congress to make 2016 move an issue against Modi's BJP

Indian Prime Minister Narendra Modi's decision to demonetise high-value currency notes in 2016 has come back into focus, triggering a political battle between the opposition and ruling parties in the run-up to state elections.

Two years ago, Mr Modi demonetisednotes of 500 rupees (S$9.50) and 1,000 rupees in a bid to curb India's black money economy - estimated to be equal to or more than the size of India's economy - and push digital transactions.

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A version of this article appeared in the print edition of The Straits Times on September 12, 2018, with the headline 'Rupee shake-up back in focus for state polls'. Print Edition | Subscribe