Subscribe to get full access to all our content
interactive news
Let's Start With Less-cash Society To Move To Cashless India, Says PM Modi
India removes its two largest notes from circulation (CCSS Level: Grade 8, Words: 370)
Nov 28, 2016 World News
A
A
A

In a surprise move, India's government has ordered the removal of its two largest notes in circulation - the 500 rupee and the 1000 rupee notes. India's central bank, the Reserve Bank of India (RBI), says that over 5 trillion rupees ($74 billion) in old cash has been removed from circulation since Prime Minister Modi's announcement on November 8. In fact Mr Modi gave only four hours' notice that almost all the cash in one of the world's largest economies will no longer be able to be used.

(Most Indians have spent these days waiting in line. Photo credit: Ravi Babu/Facebook)

People with 500 and 1000 rupee notes were asked to take them to banks to be exchanged or to deposit them into bank accounts. However these two notes make up about 86% of all the money in circulation, and long lines have formed outside banks all day, every day. At the same time many shops are reporting that trade has almost dried up, as people have stopped spending because the shopkeepers can no longer accept the two most popular notes that most people use daily.

Mr Modi is hoping the rupee note switch will cut down on the number of people not paying taxes, by forcing them to use banks. It is also hoped that it will make forgery more difficult as the new notes coming into circulation will be much harder to copy. India does not use online payments, bank cards or other electronic payment systems the way most developed economies do. In fact almost all payments are made in cash, and it is not unusual for people to buy cars or even houses by carrying suitcases full of money. The notes are not particularly valuable by international standards. A 1000 rupee note is only worth about US$15.

The moves will probably be good for the Indian economy in the long term, especially as so few people currently pay any tax at all. Extra tax on incomes will mean the government will be able to spend more on improving the country's infrastructure, such as water, roads and electricity supplies. But until more notes can be printed to replace the old, there will continue to be pain, especially for travelers, small shopkeepers and people with large numbers of the old notes hidden away.

Why has the removal of the two largest notes been especially difficult for India?
The country does not use online payment very much
There are not enough new notes to replace the old ones
The 500 and 1000 rupee notes made up 86% of all money
All of the above reasons apply to the Indian economy
What was the main reason that the notes were removed from circulation?
The money was no longer worth very much
People were using cash to avoid paying tax
They wanted to replace old, worn-out notes
People were spending too much money
Why does the Indian government want to increase the amount it takes in tax?
To remove large amounts of cash from the system
To be able to spend much more on infrastructure
To stop people buying cars and houses for cash
To stop people from taking cash out of the country
Related Articles
The Total Success Of the Thai Cave Rescue Is Nothing Short Of A Miracle
Jul 11, 2018
Scotland Breaks Temperature Record
Jul 3, 2018
More Restrictions On Cabin Baggage In Flights
Jun 27, 2018
New Zealand Continues Search For A Chief Technology Officer
Jun 26, 2018
World's Oldest Orang-utan Puan Dies At Western Australia Zoo
Jun 20, 2018
The Proposed Foreign Property Buyers Ban Has Been Relaxed For Buying Apartments
Jun 19, 2018
Find Any Location With Just Three Words
Jun 14, 2018
Donald Trump, Kim Jong Un Touch Down In Singapore For Historic Summit
Jun 11, 2018
Treasure Hunters Seek To Make A Fortune After Meteorites Hit China
Jun 7, 2018
Australia Completes World's Largest Outback Cat-proof Fence
May 24, 2018
New Zealand Budget Economic and Fiscal Update 2018
May 18, 2018
Keyless Cars Lead To Deaths Of Dozens In US
May 17, 2018
Sichuan Airlines Co-pilot 'Sucked halfway' out of cockpit, Captain Says
May 16, 2018
Burberry Accuses Target Of Ripping Off Signature Plaid
May 11, 2018
Lava Spills Through Hawaii Neighbourhood
May 8, 2018
It Is Nearly Impossible To Learn A New Language Fluently
May 7, 2018
Another Lettuce Contamination Outbreak In US
May 4, 2018
Auckland Wakes Up To Massive Storm Damage
Apr 11, 2018
Tiangong-1 Falls To Earth on April 1
Apr 3, 2018
The World's Largest Collection Of Ocean Garbage Is Growing
Mar 23, 2018
Changi Six-time Winner Of The Title Of World's Best Airport
Mar 22, 2018
Spring (or Autumn) Equinox 2018
Mar 20, 2018
Legendary French Fashion Designer Givenchy Dies at 91
Mar 12, 2018
McDonald's Arches Upside Down To Make A Powerful Statement
Mar 8, 2018
Massive Compulsory Car Recall to Hit Australia
Mar 2, 2018
A NZ River of Shingle Rock Flowing Down
Feb 28, 2018
New Zealand retains top spot as most-trusted nation for third straight year
Feb 23, 2018
Almost 300 KFC Branches Still Closed
Feb 22, 2018
Chinese Police Increase Use Of Smart Tech In Arrests
Feb 8, 2018
Heavy Rain, Flooding As Storm Hammers NZ
Feb 5, 2018
Rare Super Blue Blood Moon Eclipse Thrills Millions Around the World
Feb 1, 2018
Yes, Canada Actually Has A Polar Bear Jail
Jan 31, 2018
Indian Visa Applications Fall
Jan 30, 2018
Earthquakes And Volcanic Eruptions hit around Pacific
Jan 24, 2018
The World's First Water Rescue By Drone
Jan 19, 2018
Airborne Car Crashes Into Second Floor Of Building
Jan 16, 2018
NZ has fifth-warmest year since 1909
Jan 11, 2018
China's Solar Highway Closed After Thieves Stole One Of The Panels
Jan 10, 2018
Heatwave Causes Sydney To Be Hottest Place On Earth
Jan 8, 2018
Gaming Addiction Is To Be Listed As A Mental Health Condition
Jan 5, 2018
White Christmas rFor Parts Of UK
Dec 29, 2017
Chinese consortium to bid for Singapore-Malaysia high-speed rail
Dec 27, 2017
At Least 4 Dead After Ferry Capsizes Off Philippines
Dec 21, 2017
Atlanta Airport's Power Returns After Crippling Outage
Dec 18, 2017
World's Steepest Railway Opens
Dec 18, 2017
Tasman Sea A 'Bath With The Hot Tap On'
Dec 4, 2017
Mount Agung Volcano Erupts For The First Time In More Than 50 Years
Nov 21, 2017
British Airways To Board Passengers Paying Lower Economy Fares Last
Nov 21, 2017
28 injured As Singapore Trains Collide 
Nov 16, 2017
Smog Shrouds Delhi As India's Capital Succumbs To Dangerous Levels Of Pollution
Nov 13, 2017
What Happened To Winter?
Nov 9, 2017
Drone Interferes With Auckland Flight
Nov 6, 2017
Could Singapore's Passport Provide Best Access?
Nov 2, 2017
Immigration New Zealand Considers Closing Down Overseas Visa Processing Offices
Nov 1, 2017
NZ Considers Developing Climate Change Refugee Visa
Nov 1, 2017
Students Will Suffer If Australia And New Zealand Change Tertiary Fee Agreement
Oct 27, 2017
NZ First Goes With Labour
Oct 19, 2017
Storm Ophelia Hits Ireland, Prompting First Ever Severe Weather Alert
Oct 17, 2017
At Least 31Dead In Horrific California Wildfires
Oct 13, 2017
Airbus A380 Makes Emergency Landing
Oct 3, 2017
Photoshopped Images To Have Compulsory Warning Labels In France
Oct 2, 2017
Airlines Suffer Worldwide Delays After Global Booking System Goes Down
Sep 28, 2017
Many Flights Cancelled Due To Fuel Shortage In Auckland
Sep 18, 2017
Education Leaders Announce Plan To Combat Auckland Teacher Crisis
Sep 14, 2017
This Storm Has The Potential To Catastrophically Devastate Florida
Sep 8, 2017
Jacinda Ardern Lifts Labour Into Poll Lead In Run-up to New Zealand Election
Sep 1, 2017
Tropical Storm Harvey Brings Catastrophic Flooding To Houston
Aug 28, 2017
Typhoon Hato Could Cause HK$8 Billion in Losses After Huge Typhoon hits Southern China
Aug 24, 2017
America Marvels At Total Solar Eclipse
Aug 22, 2017
Millions Of European Eggs Have Been Pulled From Supermarket Shelves
Aug 10, 2017
Earthquake Hits Sichuan, China
Aug 9, 2017
Chinese Tourists Arrested In Germany
Aug 8, 2017
Seattle Could be Hit by 40 Degree Temperatures This Thursday
Aug 3, 2017
Survey Shows Disturbing Levels Of Sexual Assault and Harassment At Australian Universities
Aug 2, 2017
Officials Explain Why Niagara Falls Turned Black
Aug 1, 2017
China Bans Most Foreign Garbage
Jul 27, 2017
The Beijing to Urumqi Expressway, The World's Longest Motorway, Opens
Jul 24, 2017
Could 'Smart' Toys Be Spying On Your Children?
Jul 19, 2017
Woman Killed By Jet-engine Blast on Caribbean island
Jul 14, 2017
One Trillion Tonne Iceberg Breaks From Antarctica
Jul 13, 2017
France Set To Ban Sale Of Petrol And Diesel Vehicles By 2040
Jul 7, 2017
Canadian Baby ' First Without Gender Designation' On Health Card
Jul 4, 2017
60 UK High-rise Buildings Fail Fire Safety Tests
Jun 28, 2017
Growing Shortage Of Pilots Causing Headaches For Airlines
Jun 22, 2017
Ripping Up The Rulebook On Human Right
Jun 12, 2017
AI Robot Takes GaoKao Maths Test
Jun 8, 2017
The Most Expensive Public Transport Cities In The World
Jun 6, 2017
British Crackdown On Drivers Using Mobile Phones While Driving
May 31, 2017
Teen Died From Too Much Caffeine
May 22, 2017
150 Countries Hit, WannaCry Attacks All Around The World
May 16, 2017
Moon Jae-In Poised to Be South Korean President
May 11, 2017
France Elects Macron As New President
May 8, 2017
First Direct China-Britain Freight Train Arrives Back In China
May 1, 2017
Singapore Is Once Again Chosen As The Word's Best Maritime Hub
Apr 27, 2017
LA Airport Failed To Spot Gun In Hand Luggage
Apr 21, 2017
Governments Tighten Work-Visa Rules For Migrants
Apr 20, 2017
Painful Lessons For United Airlines
Apr 18, 2017
Taiwan Bans Dog And Cat Meat From Table As Attitudes Change
Apr 13, 2017
An On-fire US Highway Bridge Has Collapsed Creating Traffic Chaos
Apr 3, 2017
No Turning Back, On Brexit
Mar 31, 2017
This Was A Monster Cyclone Bears Down To Australia
Mar 29, 2017
Singapore and Hong Kong Still Are The Most Expensive Cities In Which To Live
Mar 24, 2017
Beijing Hand-Pulled Ferry To Beat The Traffic Jam
Mar 23, 2017
Auckland, more water savings urgently needed
Mar 11, 2017
International Women's Day - Be Bold For Change
Mar 8, 2017
Australian Boys Saved By Record Anti-venom Dose After Spider Bite
Feb 24, 2017
Rain Lets up After Widespread Flooding
Feb 23, 2017
A Chubby Black Bear Aids Japan Quake Victims
Feb 13, 2017
Paris To Build Glass Bullet-Proof Wall Around the Iconic Eiffel Tower
Feb 10, 2017
The World Longest Flight Touches Down in Auckland
Feb 7, 2017
The New Silk Road: China Opens Beijing-London Freight Train Route
Jan 5, 2017
China To Ban Trade In Ivory
Jan 3, 2017
Rare Floods In Central Australia
Dec 29, 2016
Deadly Snake Found Decorating Christmas Tree
Dec 22, 2016
World's Heaviest Woman To Fly To India For Treatment
Dec 12, 2016
New Zealand's New Prime Minister Certain To Be Bill English
Dec 9, 2016
Hawaii: Sand, Surf And Snow
Dec 6, 2016
Girls Aged 3 Saves Mum With 999 Call
Dec 2, 2016
Green Snow Observed In Ural Mountains Of Russia
Dec 1, 2016
World's Oldest Person Celebrates Her 117th Birthday
Nov 30, 2016
Let's Start With Less-cash Society To Move To Cashless India, Says PM Modi
Nov 28, 2016
Stanford University Study Says Young Americans Have No Idea What Is News
Nov 23, 2016
Large Earthquake Strikes East Coast Of Japan
Nov 22, 2016
New Zealand Still Open To Tourists After Earthquake
Nov 16, 2016
Police Find Adorable Koala In Woman's Bag
Nov 10, 2016
US Election Results Surprise Many
Nov 9, 2016
Snake On A Plane!
Nov 8, 2016
Mexico City Celebrates First Ever Day of the Dead Parade
Oct 31, 2016
Air India Delhi-San Francisco Flight Now Officially The World's Longest
Oct 27, 2016
Good News: Marmite Is Back
Oct 19, 2016
France Bans Plastic Cups, Plates And Cutlery To Try To Save The Planet
Sep 28, 2016
Indian Domestic Flights Are the Cheapest in the World
Sep 22, 2016
Studies Show That Typhoons Hitting Asia Are Getting Stronger
Sep 13, 2016
Cable Car Failure Traps People Overnight In French Alps
Sep 9, 2016
Giant Shipping Company Goes Into Bankruptcy
Sep 6, 2016
An End To Train Tickets In Britain?
Sep 1, 2016
Massive Earthquake Hits Central Italy
Aug 26, 2016
Highest And Longest Glass Bridge Opens In China
Aug 24, 2016
A-level Exam Results Released In UK
Aug 19, 2016
First Giant Panda To Be Born In Shanghai
Aug 16, 2016
Half Of All US Food Produce Is Thrown Away
Aug 10, 2016
New Zealand Beach Bought By Crowdfunding
Jul 13, 2016
Pamplona Bull-Running Festival Concludes
Jul 8, 2016
Panama Canal Bigger Than Ever
Jun 27, 2016
Tornado Strikes Yancheng City
Jun 24, 2016
To Protect and Serve
Jun 13, 2016
Shark Attacks and Other Dangers
Jun 6, 2016
Lightning Strikes
Jun 1, 2016
Yangtze Prepares For Floods
May 25, 2016
Zika Virus Causes Alarm
May 22, 2016
Hottest Day On Record
May 21, 2016
Canadian Wild Fires
May 9, 2016
Oldest Message in a Bottle Discovered
Apr 28, 2016
China Replacing Notes with Coins
Apr 23, 2016
Ecuador Earthquake 2016
Apr 19, 2016
California Wildfires
Mar 30, 2016
Blood Donors in Sweden Get A Text Message When They Help Save A Life
Jan 25, 2016

an-nounce

give information, make something public


v.宣布/公布

an-nounce-ment

a public statement or notice


n.公告

ash

the powdery residue left after the burning of a substance or emitted by a volcano


n.灰

ban

officially not allow


v.禁止

bil-lion

a very large number, equal to 10^9


No.十亿

cir-cu-la-tion

movement around and around, or public availability of something


n.循环

con-ti-nue

go on and on


v.继续

cult

something really popular amongst a group of people


n.礼拜    

cur-rent

right now / a flow of water in the ocean


adj,n.当前/潮流

de-po-sit

money stored for future use


n.存款

de-ve-loped

cause something to grow or go into production    


v.研发

dif-fi-cult

hard, not easy


adj.困难

e-co-no-mies

the wealth and resources of countries


n.经济

e-lec-tro-nic

using small chips and circuits to control electricity


adj.电子

go-vern-ment

the ruling body of a nation, state or community


n.政府

hid-den

not seen or thought about


adj.隐藏    

in-come

money gained through work or investment


n.收入

in-fra-struc-ture

the physical things needed to run a society (buildings, power and so on)


n.基础设施

in-ter-na-tion-al

existing between two or more countries


adj.国际

mi-ni-ster

a head of a government department


n.部长

no-tice

become aware of


v.注意

on-line

while connected to a computer


adv.线上

o-val

shaped like an egg


n.椭圆

par-ti-cu-lar-ly

very or especially


adj.尤其    

re-place

take the place of


v.更换

spe-cial

better or greater than usual


adj.特别

stan-dard

the normal amount


n.标准

stem

the main body or stalk of a plant or shrub, usually rising above ground


n.干茎

tril-lion

a million million, 10 to the power of 12


No.兆

un-u-su-al

strange, not common, different


adj.异常 / 特别

va-lua-ble

worth a lot of money


adj.有价值/宝贵