Our latest commentary - Cashing-in on India

At a time when those living in the UK are desperately searching for one of a handful of Jane Austen commemorative £5 notes worth more than £50,000, the Indian population are desperately trying to deposit notes of an equivalent value with banks before they become worthless.

On November 8th Narendra Modi, the Indian Prime Minister, gave just four hours’ notice that his government were withdrawing all 500 rupee and 1000 rupee notes (worth around £6 and £12) from circulation and that anyone in possession of one of the redundant notes had until the end of this year to deposit them into their bank account or exchange them for a newly issued 2000 rupee note. This had a much greater impact than the ECB withdrawing the €500 note earlier this year because these two banknote denominations account for circa 86% of the India’s cash in circulation!