New Delhi: After Prime Minister Narendra Modi announced that Rs 500, Rs 1000 notes will cease to be legal tender in order to eradicate the problem of black money in India, banks in the United States have closed down their counters for Indian currency exchange.
Big banks in the United States such as JPMorgan Chase & Co. and Citigroup Inc. have not been able to take the now illegal bills. Since the big banks have to rely on vendors to provide rupees to clients, the unavailability resulting from the demonetisation announcement has closed the currency exchange.
According to LiveMint, banks like the Bank of America Corp. never accepted Indian currency for exchange in the first place.
“A lot of people are affected and we don’t have a culture that is credit-card friendly, it’s a cash-based economy,” LiveMint quoted Nandita Chandra, head of Great Indian Travel Co., as saying.
On November 8, Prime Minister Modi announced that Rs 500 and Rs 1000 will cease to be legal tender and that the old notes will have to be deposited in the banks before December 30. New Rs 2000 and Rs 500 notes have been introduced albeit slowly.