notes: Modi shocked Indians in November 2016 when he announced on live television that all 500 and 1000-rupee notes, equivalent to about 6 and 12, would be banned in four hours' time, according to The Guardian. India's banknote ban how Modi botched the policy yet kept his political capital Read more People were given several weeks to exchange their demonetised currency for new notes at banks. The figures suggest prime minister Narendra Modi's demonetisation policy, which likely wiped at least 1% from the country's GDP and cost at least 1.5m jobs, failed to wipe significant hordes of unaccounted wealth from the Indian economy a key rationale for the move. But new notes could not be printed fast enough, and the policy sparked a months-long currency crunch that left tens of millions of Indians cashless or standing in line for hours each day to retrieve small sums of cash. The RBI's annual report on Wednesday found 99.3% of the money withdrawn from circulation had been returned to banks, indicating either there was less black money than expected, or that schemes to launder money were more successful than thought. As India's massive informal economy reeled, Modi implored the country to give the policy time to work, arguing it would flush out untaxed wealth being hoarded by wealthy Indians, help to digitise the economy one of the most cash-based in the world and starve terrorists and criminal gangs of cash.
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