DHAKA: People are queuing up outside banks across India to exchange 500 and 1,000 rupee notes after they were withdrawn as part of anti-corruption measures.

Indians will be able to exchange their old notes, which stopped being legal tender at midnight on Tuesday, for new ones at banks until December 30.

The surprise move is part of a government crackdown on corruption and illegal cash holdings.

Banks were shut on Wednesday to allow them enough time to stock new notes.

There are also limits on cash withdrawals from ATMs.

The BBC’s Yogita Limaye in Mumbai says there have been chaotic scenes outside many banks.

“At one branch there are at least 100 people waiting outside. Worries that banks will run out of currency notes are driving people to queue up outside them. And the fears may not be unfounded. At least two banks I have been to since the morning are only allowing deposits and not exchange because they have run out of new currency notes,”

There was a similar picture in Delhi.

The BBC’s Vikas Pandey said “Almost every bank I have visited in old Delhi has long lines. People, mostly businessmen, are worried. There seems to be a lot of confusion over what people can and cannot do with their cash.”

The banned currency notes represent 85 percentof the cash in circulation in India, which is an overwhelmingly cash-based economy.

BDST: 1739 HRS, NOV 10, 2016
AP/BD