The notes ban had taken out 86 per cent of the cash circulating in the economy at that time and a massive cash crunch has followed, disrupting daily life, with people struggling to get new currency notes and holding back on spending, except for immediate and urgent needs.
The days after the ban saw long lines at banks and ATMs as people rushed to exchange old notes for new currency over the counter. That was stopped some weeks ago, and in the middle of December the government withdrew all concessions for spending old notes at petrol pumps and other utilities.
In a new order it has said that holding more than 10 old notes after December 30 will be punishable with a 50,000 rupee fine.
As opposition parties attacked the Prime Minister for the hardships caused to people by the cash crunch, PM Modi promised that the problems would be eased within 50 days. That ends tomorrow, and ministers claim that the situation is now much better.
