India’s Banks Buckle on First Payday Since Demonetization

India’s Banks Buckle on First Payday Since Demonetization

A shortage of new notes in India following sudden currency reforms means workers’ first payday comes amid a banking meltdown. PAYDAY WOES, RUPEE LOWS. On the evening of November 8, 2016, Indian Prime Minister Narendra Modi made the shock announcement that all 500 and 1000 rupee notes would immediately cease to be legal tender. For the majority of the Indian workforce, today is their first payday since that announcement. With a shortage of the new 2000 rupee notes, banks are facing a new crisis. Back in October, we published a piece on the potential for India to cause strong upward pressure....


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