The Indian Rupee Currency Crisis: The Voices in India

November 22, 2016

Black money is any money on which tax is not paid to the government, and it plagues India, where about a third of all business is carried out using black money. Naturally, it accounts for about 86 percent of the currency in the country, in the form of the 500- and 1000-rupee notes.

Prime Minister Narenda Modi wanted to tax that money, so he banned those two rupee notes, effectively rendering most of the money people had useless. He allowed people to exchange those notes at the banks, or deposit those notes in their bank accounts if they so choose, until Dec. 30.

Unfortunately, the process of exchanging black money has not been the most convenient. Banks hold a weekly cap of 24,000 rupees on exchange of 500- and 1000-rupee notes, and the tax authorities will investigate any deposits above 250,000 rupees. Meanwhile, ATMs can only give 2,500 rupees per withdrawal.

The money reform since then has thrown the country into chaos as people are scrambling, lining up outside banks or queuing at ATMs every day to withdraw enough money to pay for necessities.
Sentifi has more than 3 million relevant voices in the market, and we zero in on the voices in India to gauge their struggle with the reform. With up to date insights, Sentifi monitors what the crowd is saying about the Rupee currency crisis in India.