A major UK national daily has claimed that Russia may be increasingly trying to source sensitive goods from India in the face of thousands of Western sanctions. The Financial Times has reported that the Kremlin is even exploring options to shift manufacturing facilities to India to have its supply chains stabilised and uninterrupted.

As per the report, India’s export to Russia of goods incorporating dual-use technologies, both military and civilian, has seen a drastic increase.

Also read:&nbsp;<a data-ved="2ahUKEwi3juyzwa6IAxURTmwGHW4jJjcQxfQBKAB6BAgIEAE" href="https://www.wionews.com/world/russian-president-putin-says-india-and-other-friends-could-act-as-mediators-in-peace-talks-with-ukraine-756094" jsname="YKoRaf" ping="/url?sa=t&amp;source=web&amp;rct=j&amp;opi=89978449&amp;url=https://www.wionews.com/world/russian-president-putin-says-india-and-other-friends-could-act-as-mediators-in-peace-talks-with-ukraine-756094&amp;ved=2ahUKEwi3juyzwa6IAxURTmwGHW4jJjcQxfQBKAB6BAgIEAE">Russian President Putin says ‘friends’ India, China, Brazil could act as mediators in peace talks with Ukraine</a>

FT claimed that Russia’s industry and trade ministry had formulated a plan in October 2022 to invest over $1 billion to secure supplies of sensitive materials from non-Western channels. The plan earmarked India as an alternative market to source crucial goods “previously supplied from unfriendly countries”.

It focused on utilising massive reserves of Indian rupees that Russia has amassed by selling fuel at cheaper rates.

The FT report also claimed&nbsp;that an Indian firm, named Innovio Ventures, supplied Russia with US$4.9 million worth of electronics, including drones via the Central Asian state of Kyrgyzstan.

Also read:&nbsp;<a data-ved="2ahUKEwi3juyzwa6IAxURTmwGHW4jJjcQxfQBKAB6BAgHEAE" href="https://www.wionews.com/world/zelensky-presses-west-for-permission-to-use-long-range-weapons-us-canada-vow-more-aid-756461" jsname="YKoRaf" ping="/url?sa=t&amp;source=web&amp;rct=j&amp;opi=89978449&amp;url=https://www.wionews.com/world/zelensky-presses-west-for-permission-to-use-long-range-weapons-us-canada-vow-more-aid-756461&amp;ved=2ahUKEwi3juyzwa6IAxURTmwGHW4jJjcQxfQBKAB6BAgHEAE">Zelensky presses West for permission to use long-range weapons; US, Canada vow more aid</a>

India, over the past two years, has imported Russian oil at discounted prices, while pointing out West’s hypocrisy that Europe was still buying energy from Russia despite imposing sanctions.

India’s foreign minister said last month that New Delhi&nbsp;had to buy oil from Moscow&nbsp;given the “tight energy market” and massive demand at home.

External Affairs Minister (EAM) S Jaishankar in Kyiv said, “India is a big oil consumer. It’s a big oil importer because we don’t produce oil. So, it’s not like there is a political strategy to buy oil. There is an oil strategy to buy oil. There’s a market strategy to buy oil… The fact that the market is tight, that today big suppliers like Iran and Venezuela, who used to supply India, are constrained from operating freely in the markets… This factor needs to be taken into account.”

India’s exports to Russia soared to $4 billion in 2023, registering a 40 per cent growth. The trend was largely driven by electronic goods.

(With inputs from agencies)

A major UK national daily has claimed that Russia may be increasingly trying to source sensitive goods from India in the face of thousands of Western sanctions. The Financial Times has reported that the Kremlin is even exploring options to shift manufacturing facilities to India to have its supply chains stabilised and uninterrupted.

A major UK national daily has claimed that Russia may be increasingly trying to source sensitive goods from India in the face of thousands of Western sanctions. The Financial Times has reported that the Kremlin is even exploring options to shift manufacturing facilities to India to have its supply chains stabilised and uninterrupted. As per the report, India’s export to Russia of goods incorporating dual-use technologies, both military and civilian, has seen a drastic increase. Also read: Russian President Putin says ‘friends’ India, China, Brazil could act as mediators in peace talks with Ukraine FT claimed that Russia’s industry and trade ministry had formulated a plan in October 2022 to invest over $1 billion to secure supplies of sensitive materials from non-Western channels. The plan earmarked India as an alternative market to source crucial goods “previously supplied from unfriendly countries”. It focused on utilising massive reserves of Indian rupees that Russia has amassed by selling fuel at cheaper rates. The FT report also claimed that an Indian firm, named Innovio Ventures, supplied Russia with US$4.9 million worth of electronics, including drones via the Central Asian state of Kyrgyzstan. Also read: Zelensky presses West for permission to use long-range weapons; US, Canada vow more aid India, over the past two years, has imported Russian oil at discounted prices, while pointing out West’s hypocrisy that Europe was still buying energy from Russia despite imposing sanctions. India’s foreign minister said last month that New Delhi had to buy oil from Moscow given the “tight energy market” and massive demand at home. External Affairs Minister (EAM) S Jaishankar in Kyiv said, “India is a big oil consumer. It’s a big oil importer because we don’t produce oil. So, it’s not like there is a political strategy to buy oil. There is an oil strategy to buy oil. There’s a market strategy to buy oil… The fact that the market is tight, that today big suppliers like Iran and Venezuela, who used to supply India, are constrained from operating freely in the markets… This factor needs to be taken into account.” India’s exports to Russia soared to $4 billion in 2023, registering a 40 per cent growth. The trend was largely driven by electronic goods. (With inputs from agencies)

Kremlin exploring sourcing sensitive goods from India in face of Western sanctions: Report

Korean automaker Hyundai has launched the updated version of its Grand i10 in India as the Grand i10 NIOS. Priced between a bracket of 4.99 lakh and 7.99 lakh Indian rupees, the new model is an addition to Hyundai's hatchback line-up and sits between the already existing Grand i10 and the Elite i20.

Hyundai Grand i10 NIOS: A small all-rounder

Shares of Mahindra Logistics Ltd&nbsp;fell as much as 2.1 per cent on its market debut on Friday after the company raised 8.3 billion rupees ($128 million) via an initial public offering last week.

The issue was, however, subscribed nearly eight times on the last day of the sale.

By 0433 GMT, shares in the company were trading at 425.55 rupees on the National Stock Exchange, down 0.80 per cent versus its issue price of 429 rupees.

The company raised 8.3 billion rupees ($128 million) via an initial public offering last week

Shares of Mahindra Logistics Ltd fell as much as 2.1 per cent on its market debut on Friday after the company raised 8.3 billion rupees ($128 million) via an initial public offering last week. The issue was, however, subscribed nearly eight times on the last day of the sale. By 0433 GMT, shares in the company were trading at 425.55 rupees on the National Stock Exchange, down 0.80 per cent versus its issue price of 429 rupees.

Mahindra Logistics shares fall 2.1% on market debut

More than twenty five per cent of people living in Asia had to pay a bribe to someone in order to access a public service in the past year, said a watchdog Tuesday, calling on governments to root out endemic graft in the region.

The report issued by Berlin-based Transparency International surveyed more than 200,000 in 16 countries across the Asia Pacific region, from Pakistan to Australia.

The results of the study suggest that 900 million people were forced to hand over &quot;tea money&quot; at least one time in the preceeding 12 months.

Transparency International&#39;s <a href="http://www.transparency.org/news/feature/corruption_in_asia_pacific_what_20000_people_told_us" target="_blank">website </a>says that the report comes at a time when countries of the region are preparing their agendays to me the United Nations Sustainable Development Goals (SDGs). Some priorities include reducing all forms of corruption and bribery.

The country&nbsp;where the most people had paid bribes was&nbsp;India, where 69 per cent&nbsp;of respondents said they had to include a bribe in order to access basic services, like public education and healthcare.

To the question &quot;Has corruption increased recently?&quot;, 41 per cent of Indians said it either&nbsp;&quot;increased somewhat&quot; or &quot;increased a lot&quot;.

The countries in the region with the lowest incidences of bribery were Japan, South Korea, Hong Kong and Australia.

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Police were the most common demanders of kickbacks, according to the survey, with just under one-third of people who had come into contact with an officer in the past year saying they had paid a bribe. &nbsp;

Those aged under 35 were the most likely to have paid a bribe to access a public service, with 34 per cent saying they had.&nbsp;Next&nbsp;are&nbsp;those aged between 35 and 54-years-old, with 29 per cent.&nbsp;19 per cent of those older than 55 say they have paid a bribe.

There was only a negligible difference between the percentage of males and females who had paid&nbsp;bribes, at 30 per cent and 27 per cent, respectively.

Corruption hits the poor the most often, as 38 per cent of respondents said they had to pay a bribe, the highest in any income category. But this dynamic doesn&#39;t play out in every country. Poorer people were more likely to be targeted for bribery in countries like Thailand, India and Pakistan, but the opposite is true in Vietnam, Myanmar and Cambodia.

&quot;Governments must do more to deliver on their anti-corruption commitments,&quot; Jose Ugaz, the chair of Transparency International, said in a press release. &quot;Bribery is not a small crime, it takes food off the table, it prevents education, it impedes proper healthcare and ultimately it can kill.&quot;

When it came to perceptions of corruption Malaysia and Vietnam got the worst ratings from their citizens, who felt graft was widespread and accused their governments of doing little to fight it.&nbsp;

&nbsp;

Government corruption

Corruption scandals have rocked a number of governments in Asia over the past year, dominating news headlines and whipping up protests.&nbsp;

South Korea&#39;s President Park Geun-hye was impeached by parliament in December over a major influence-peddling scandal that prompted millions to take to the street for months to call for her resignation.

Malaysia has also been seized by a graft scandal since 2015, with global investigators accusing Premier Najib Razak and his associates of misappropriating billions of dollars through the state-backed 1MDB fund.

A report last year by a corruption watchdog also detailed the enormous wealth accumulated by the family and friends of Cambodian Prime Minister Hun Sen.&nbsp;

China, meanwhile, has been on anti-corruption drive that has netted more than one million officials, while fellow communist country Vietnam has also jailed a number of former businessmen for graft in its bloated state-run sector.

Thailand&#39;s junta government has vowed a similar anti-corruption campaign, but there have been few convictions so far.

(WION with inputs from AFP)

More than one in every four people living in Asia paid a bribe in 2016 but the poor pay the most of all, says the report

More than twenty five per cent of people living in Asia had to pay a bribe to someone in order to access a public service in the past year, said a watchdog Tuesday, calling on governments to root out endemic graft in the region. The report issued by Berlin-based Transparency International surveyed more than 200,000 in 16 countries across the Asia Pacific region, from Pakistan to Australia. The results of the study suggest that 900 million people were forced to hand over "tea money" at least one time in the preceeding 12 months. Transparency International's website says that the report comes at a time when countries of the region are preparing their agendays to me the United Nations Sustainable Development Goals (SDGs). Some priorities include reducing all forms of corruption and bribery. The country where the most people had paid bribes was India, where 69 per cent of respondents said they had to include a bribe in order to access basic services, like public education and healthcare. To the question "Has corruption increased recently?", 41 per cent of Indians said it either "increased somewhat" or "increased a lot". The countries in the region with the lowest incidences of bribery were Japan, South Korea, Hong Kong and Australia. The poor are hit hardest by corruption with 38 per cent of respondents saying they had to pay a bribe, the highest in any income category. Yet while poorer people were more likely to be targeted in countries like Thailand, India and Pakistan, the reverse trend was found in places like Vietnam, Myanmar and Cambodia × Police were the most common demanders of kickbacks, according to the survey, with just under one-third of people who had come into contact with an officer in the past year saying they had paid a bribe. Those aged under 35 were the most likely to have paid a bribe to access a public service, with 34 per cent saying they had. Next are those aged between 35 and 54-years-old, with 29 per cent. 19 per cent of those older than 55 say they have paid a bribe. There was only a negligible difference between the percentage of males and females who had paid bribes, at 30 per cent and 27 per cent, respectively. Corruption hits the poor the most often, as 38 per cent of respondents said they had to pay a bribe, the highest in any income category. But this dynamic doesn't play out in every country. Poorer people were more likely to be targeted for bribery in countries like Thailand, India and Pakistan, but the opposite is true in Vietnam, Myanmar and Cambodia. "Governments must do more to deliver on their anti-corruption commitments," Jose Ugaz, the chair of Transparency International, said in a press release. "Bribery is not a small crime, it takes food off the table, it prevents education, it impedes proper healthcare and ultimately it can kill." When it came to perceptions of corruption Malaysia and Vietnam got the worst ratings from their citizens, who felt graft was widespread and accused their governments of doing little to fight it. Government corruption Corruption scandals have rocked a number of governments in Asia over the past year, dominating news headlines and whipping up protests. South Korea's President Park Geun-hye was impeached by parliament in December over a major influence-peddling scandal that prompted millions to take to the street for months to call for her resignation. Malaysia has also been seized by a graft scandal since 2015, with global investigators accusing Premier Najib Razak and his associates of misappropriating billions of dollars through the state-backed 1MDB fund. A report last year by a corruption watchdog also detailed the enormous wealth accumulated by the family and friends of Cambodian Prime Minister Hun Sen. China, meanwhile, has been on anti-corruption drive that has netted more than one million officials, while fellow communist country Vietnam has also jailed a number of former businessmen for graft in its bloated state-run sector. Thailand's junta government has vowed a similar anti-corruption campaign, but there have been few convictions so far. (WION with inputs from AFP)

Indians pay more bribes than any Asian country: Report

People across the country queued up at Automatic Teller Machines (ATM) and gas stations on Tuesday evening after India announced the withdrawal of notes of higher denominations from the financial system from midnight.

In an unscheduled public address, Prime Minister Narendra Modi said INR 500 and 1,000 banknotes were being withdrawn from circulation as part of a crackdown on rampant corruption and counterfeit currency.

Many were caught off-guard by the announcement, especially tourists outside of their&nbsp;home.

&quot;If I didn&#39;t have change... The taxi driver had refused to take 500, so I was saved. But there would be so many people facing problems. This was a simple issue. There can be bigger matters - you have to pay rent, but people will refuse (to accept money). How will you buy things tomorrow?&quot; said Gulzaar, a Mumbai resident who is currently in Delhi.

The surprise step appears designed to bring billions of dollars worth of cash in unaccounted wealth into the mainstream economy, as well as hit the finances of Islamist militants who target India and are suspected of using fake 500 rupee notes to fund operations.

Terming it a &quot;standardisation time for the economy&quot;, Arindam, a resident of southern Chennai city, said the decision had to be sudden in order to achieve maximum impact.

&quot;These decisions need to be surgical, isn&#39;t it. I mean, the motive of the government requires this kind of surgical action,&quot; Arindam said.

Modi&#39;s ruling Bharatiya Janata Party came into power in 2014 promising to bring billions of dollars of black market money into the regular financial system.

Tuesday&#39;s announcement comes just over a month after the government raised nearly $10 billion through a tax amnesty for Indians to declare hidden income and assets.

Many opined though the move was welcome, steps should be taken to ensure people don&#39;t face any difficulty.

&quot;There has to be an alternative. Removing notes all of a sudden (is a bad move). If you go to the market, you can&#39;t be very practical that you will pay with INR 100 notes for things costing INR 500. So there has to be an alternative. Let&#39;s give it a 15-day trial,&quot; said Prateek in central Bhopal city.

Meanwhile, opposition Congress party raised questions on the validity of the move, as INR 2,000 notes were being introduced after withdrawing INR 1,000 notes.

(Reuters)

Many were caught off-guard, others welcomed the move but maintained that steps should be taken to ensure people don't face any difficulty

People across the country queued up at Automatic Teller Machines (ATM) and gas stations on Tuesday evening after India announced the withdrawal of notes of higher denominations from the financial system from midnight. In an unscheduled public address, Prime Minister Narendra Modi said INR 500 and 1,000 banknotes were being withdrawn from circulation as part of a crackdown on rampant corruption and counterfeit currency. Many were caught off-guard by the announcement, especially tourists outside of their home. "If I didn't have change... The taxi driver had refused to take 500, so I was saved. But there would be so many people facing problems. This was a simple issue. There can be bigger matters - you have to pay rent, but people will refuse (to accept money). How will you buy things tomorrow?" said Gulzaar, a Mumbai resident who is currently in Delhi. The surprise step appears designed to bring billions of dollars worth of cash in unaccounted wealth into the mainstream economy, as well as hit the finances of Islamist militants who target India and are suspected of using fake 500 rupee notes to fund operations. Terming it a "standardisation time for the economy", Arindam, a resident of southern Chennai city, said the decision had to be sudden in order to achieve maximum impact. "These decisions need to be surgical, isn't it. I mean, the motive of the government requires this kind of surgical action," Arindam said. Modi's ruling Bharatiya Janata Party came into power in 2014 promising to bring billions of dollars of black market money into the regular financial system. Tuesday's announcement comes just over a month after the government raised nearly $10 billion through a tax amnesty for Indians to declare hidden income and assets. Many opined though the move was welcome, steps should be taken to ensure people don't face any difficulty. "There has to be an alternative. Removing notes all of a sudden (is a bad move). If you go to the market, you can't be very practical that you will pay with INR 100 notes for things costing INR 500. So there has to be an alternative. Let's give it a 15-day trial," said Prateek in central Bhopal city. Meanwhile, opposition Congress party raised questions on the validity of the move, as INR 2,000 notes were being introduced after withdrawing INR 1,000 notes. (Reuters)

Rs 500, Rs 1000 notes pull-out: People scramble to ATMs, gas stations in India

Indian markets are likely to welcome the country&#39;s move to kill off its 500 and 1,000 rupee banknotes on Wednesday - the US&nbsp;presidential election result notwithstanding - as banks&#39;&nbsp;coffers will fill up as people deposit the notes as part of the process.

Analysts also see the move as leading to a softening in inflation.

The surprise step is designed to bring billions of dollars&nbsp;worth of cash in unaccounted wealth into the mainstream economy, as well as dent the finances of Islamist militants who target India and are suspected of using fake 500 rupee notes to fund operations.

Indian Prime Minister Narendra Modi said 500 and 1,000 rupee notes would be withdrawn from circulation starting from midnight, saying it was part of a crackdown on rampant corruption and counterfeit currency.

Real estate firm&#39;s shares such as DLF Ltd are likely&nbsp;to be hit in the near-term given the action could curb property prices, though it will eventually boost demand for housing over the longer-term.

Black money has long been suspected of being steered into real estate, inflating prices.

Any broader market gains could be tempered should Republican candidate Donald Trump win the US&nbsp;election on Tuesday, an outcome that market investors have warned could lead to sell-offs due to doubts about his policies. The results of the election should start filtering through as Indian markets open on Wednesday.

The head of the Reserve Bank of India, Urjit Patel, said he saw no impact on liquidity in the wholesale market and that the bank had ramped up production of the new series of notes over the last few months.

&quot;If you look at India&#39;s economy point of view it&#39;s a very good measure,&quot; said Saravana Kumar, chief investment officer, LIC Mutual Fund.

Traders said bank shares would likely be the main beneficiaries as Indians hand in their bigger notes, thereby improving their near-term liquidity.

Cash positions will ease, however, as India issues new 500 rupee bills as well as higher-denomination 2,000 rupee bills to replace the retired ones.

Analysts said that the move could also lead to easing inflation as the government&#39;s push against black money is likely to push transactions into the formal economy, leading to more transparency. The exact impact would be difficult to gauge given uncertainty over the scale of illicit funds, they said.

The Reserve Bank of India unexpectedly cut the repo lending rate last month citing easing inflation, and it is seen as potentially lowering it again early next year should growth in retail prices continue to ease.

The prime minister announced a 50-day window from November 10 to December 30 for those having these notes to deposit them in their bank and post office accounts &quot;without any limit&quot;.

He also said that new notes of Rs 2000 and Rs 500, with completely new design, will be introduced. Officials said such notes have already been reached to banks to prepare for their circulation from November 10.

&quot;Based on past experience, the RBI will hereafter make arrangements to limit the share of high denomination notes in the total currency in circulation,&quot; Modi said.

Banks will remain closed tomorrow and ATMs will also not function tomorrow and in some places on November 10 also.

In the first few days, there will be a withdrawal limit of Rs 2000 per day per ATM card. This will be raised to Rs 4000 later.

Similarly, keeping in mind the supply of new notes, in the first few days, there will be a limit of Rs 10,000 per day and Rs 20,000 per week. This limit will be increased in the coming days.

Banks will open additional counters and work for additional hours to deal with the rush of people wanting to deposit or change notes.

Officials said there were 6.7 billion pieces of Rs 1,000 notes in circulation and 16.5 billion pieces of Rs 500.

&quot;There comes a time in the history of a country&#39;s development when a need is felt for a strong and decisive step,&quot; he said, asking political parties, all governments, social organisations and media to participate in the war against black money &quot;with enthusiasm to make it a success&quot;.

He conceded that there could some inconvenience to people in implementing the measures and asked them to bear with it.

Modi&#39;s ruling Bharatiya Janata Party came into power in 2014 promising to bring black market money into the regular financial system, but critics said it had failed, with government data showing the cash economy outpacing the formal economy.

Caught by surprise

Some officials and experts said Tuesday&#39;s move was the biggest in decades aimed at fighting graft.

The head of a state-run bank said it was not fully prepared for the change.

&quot;This is news for us also. I&#39;m not aware how much stock we have in our chest. The Reserve Bank will have to provide us with required cash to meet the demand. The demand will be very high no doubt,&quot; said the bank chief, who did not want to be named as he was still awaiting details.

Government data show circulation of current notes has outpaced the expansion in India&#39;s economy.

In the past five years, circulation of all currency notes grew 40 per cent, compared with 30 per cent growth in Asia&#39;s third-largest economy.

The growth in 500 and 1,000 rupee banknotes was even steeper; 500 rupee notes grew 76 percent between 2011 and 2016, while in the same period, 1,000 rupee notes rose by 109 per cent.

The head of the country&#39;s largest government-owned lender, State Bank of India, said she had just been advised about the government&#39;s decision.

&quot;We have handled demonetisation earlier and will do so again. Tomorrow banks will remain closed in order to withdraw these notes from counters and ATMs. We will strive to restock ATMs at the earliest and make them operational,&quot; said chairman Arundhati Bhattacharya.

(WION with agencies)

The surprise step is designed to bring billions of dollars?worth of cash in unaccounted wealth into the mainstream economy

Indian markets are likely to welcome the country's move to kill off its 500 and 1,000 rupee banknotes on Wednesday - the US presidential election result notwithstanding - as banks' coffers will fill up as people deposit the notes as part of the process. Analysts also see the move as leading to a softening in inflation. The surprise step is designed to bring billions of dollars worth of cash in unaccounted wealth into the mainstream economy, as well as dent the finances of Islamist militants who target India and are suspected of using fake 500 rupee notes to fund operations. Indian Prime Minister Narendra Modi said 500 and 1,000 rupee notes would be withdrawn from circulation starting from midnight, saying it was part of a crackdown on rampant corruption and counterfeit currency. Real estate firm's shares such as DLF Ltd are likely to be hit in the near-term given the action could curb property prices, though it will eventually boost demand for housing over the longer-term. Black money has long been suspected of being steered into real estate, inflating prices. Any broader market gains could be tempered should Republican candidate Donald Trump win the US election on Tuesday, an outcome that market investors have warned could lead to sell-offs due to doubts about his policies. The results of the election should start filtering through as Indian markets open on Wednesday. The head of the Reserve Bank of India, Urjit Patel, said he saw no impact on liquidity in the wholesale market and that the bank had ramped up production of the new series of notes over the last few months. "If you look at India's economy point of view it's a very good measure," said Saravana Kumar, chief investment officer, LIC Mutual Fund. Traders said bank shares would likely be the main beneficiaries as Indians hand in their bigger notes, thereby improving their near-term liquidity. Cash positions will ease, however, as India issues new 500 rupee bills as well as higher-denomination 2,000 rupee bills to replace the retired ones. Analysts said that the move could also lead to easing inflation as the government's push against black money is likely to push transactions into the formal economy, leading to more transparency. The exact impact would be difficult to gauge given uncertainty over the scale of illicit funds, they said. The Reserve Bank of India unexpectedly cut the repo lending rate last month citing easing inflation, and it is seen as potentially lowering it again early next year should growth in retail prices continue to ease. The prime minister announced a 50-day window from November 10 to December 30 for those having these notes to deposit them in their bank and post office accounts "without any limit". He also said that new notes of Rs 2000 and Rs 500, with completely new design, will be introduced. Officials said such notes have already been reached to banks to prepare for their circulation from November 10. "Based on past experience, the RBI will hereafter make arrangements to limit the share of high denomination notes in the total currency in circulation," Modi said. Banks will remain closed tomorrow and ATMs will also not function tomorrow and in some places on November 10 also. In the first few days, there will be a withdrawal limit of Rs 2000 per day per ATM card. This will be raised to Rs 4000 later. Similarly, keeping in mind the supply of new notes, in the first few days, there will be a limit of Rs 10,000 per day and Rs 20,000 per week. This limit will be increased in the coming days. Banks will open additional counters and work for additional hours to deal with the rush of people wanting to deposit or change notes. Officials said there were 6.7 billion pieces of Rs 1,000 notes in circulation and 16.5 billion pieces of Rs 500. "There comes a time in the history of a country's development when a need is felt for a strong and decisive step," he said, asking political parties, all governments, social organisations and media to participate in the war against black money "with enthusiasm to make it a success". He conceded that there could some inconvenience to people in implementing the measures and asked them to bear with it. Modi's ruling Bharatiya Janata Party came into power in 2014 promising to bring black market money into the regular financial system, but critics said it had failed, with government data showing the cash economy outpacing the formal economy. Caught by surprise Some officials and experts said Tuesday's move was the biggest in decades aimed at fighting graft. The head of a state-run bank said it was not fully prepared for the change. "This is news for us also. I'm not aware how much stock we have in our chest. The Reserve Bank will have to provide us with required cash to meet the demand. The demand will be very high no doubt," said the bank chief, who did not want to be named as he was still awaiting details. Government data show circulation of current notes has outpaced the expansion in India's economy. In the past five years, circulation of all currency notes grew 40 per cent, compared with 30 per cent growth in Asia's third-largest economy. The growth in 500 and 1,000 rupee banknotes was even steeper; 500 rupee notes grew 76 percent between 2011 and 2016, while in the same period, 1,000 rupee notes rose by 109 per cent. The head of the country's largest government-owned lender, State Bank of India, said she had just been advised about the government's decision. "We have handled demonetisation earlier and will do so again. Tomorrow banks will remain closed in order to withdraw these notes from counters and ATMs. We will strive to restock ATMs at the earliest and make them operational," said chairman Arundhati Bhattacharya. (WION with agencies)

Indian markets likely to welcome withdrawal of Rs 500, Rs 1000 denomination currency notes

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