Millions Scramble After India Scraps Its Largest Banknotes

NEW DELHI— Indians awakened to confusion Wednesday as banks and ATMs remained closed after the government withdrew the highest-denomination currency notes overnight to halt money laundering in a country where many in the poor and middle-class still r...
Millions Scramble After India Scraps Its Largest Banknotes
The logo of the Reserve Bank of India is seen on the gate of it's headquarters in Mumbai, India, Wednesday, Nov.9, 2016. Indians awoke to confusion Wednesday after the government withdrew the highest-denomination currency notes overnight to halt money laundering in a country where many in the poor and middle-class still make day-to-day transactions in cash. AP Photo/Rajanish Kakade
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NEW DELHI—Indians awakened to confusion Wednesday as banks and ATMs remained closed after the government withdrew the highest-denomination currency notes overnight to halt money laundering in a country where many in the poor and middle-class still rely mainly on cash.

Roadside vegetable sellers, kiosks selling biscuits and tea, small mom-and-pop stores selling groceries, all saw a sharp drop in customers on Wednesday, the day after Prime Minister Narendra Modi’s surprise televised announcement.

As of midnight Tuesday, all 500- and 1,000-rupee notes had no cash value. People holding the discontinued notes can deposit them in banks and post office savings accounts before the end of the year. But anyone making large bank deposits might invite the unwelcome attention of Indian tax authorities.

A customer requests a roadside foodstall to accept a 500 rupees currency note in New Delhi, India, Nov. 9, 2016. (AP Photo/Altaf Qadri)
A customer requests a roadside foodstall to accept a 500 rupees currency note in New Delhi, India, Nov. 9, 2016. AP Photo/Altaf Qadri