>> A shocking and surprising corruption crack down in India. Prime Minister Narendra Modi scrapping 500 and 1000 rupee notes from circulation, with virtually no warning. It's a step designed to root out billions or dollars hidden from the tax man and take aim at Islamic militants suspected of using counterfeit 500 rupee notes to fund their fight.
But the move is causing confusion and concern in an economy where cash is king. Gas stations and stores refusing to accept masses of old bills, while ATMs shut down to adjust, leading to retail chaos.>> The biggest problem is that we don't have any 100 Rupee notes. The banks are closed.
Where are we supposed to get the money from? We're only giving medicine to people who need it for emergencies, not to those who just want to get change.>> But the biggest impact will likely be felt in the poor countryside.>> Farmers who don't have a bank account are suffering because of this decision.
This is wedding season and people are worried about how they're gonna pay for their marriages.>> Modi has been criticized for failing to bring billions in black market money back into the system. India's so called shadow economy is estimated at a fifth of its GDP. And millions of people still have no access to simple banking services.
But the likes of Visa, MasterCard, and PayPal ,are praising the no cut, no doubt eyeing up a potential gains from an economy less reliant of cash.