• NUS ISAS
    • Print

    ISAS Insights

    Detailed perspectives on developments in South Asia​​

    363 : Demonetisation – Is this time different?

    Duvvuri Subbarao

    14 November 2016

    The bold and surprise decision of the Indian Government last week to delegalize the two highest denomination currency notes - 1000 rupees (about USD 15) and 500 rupees (USD 7.5) - which account for 85 percent of the value of cash circulating in the economy will impose short-term costs but has the potential to deliver enduring gains, provided the measure is followed to its logical closure.