Saudi Gazette JEDDAH — Indians living in the Kingdom welcomed their country's decision to scrap the largest banknotes — Rs500 and Rs1,000 — in a bid to curb black money and corruption. Prime Minister Narendra Modi in a televised address to the nation made the shocking announcement late on Tuesday. Reacting to the news, Indian Consul General Md. Noor Rahman Sheikh told Saudi Gazette that it is a great decision. "Across the board, people are celebrating such a move, truly described by many as a ‘master stroke,'" he added. When asked how it will affect Indians living in the Kingdom, he said: "For expats earning their income lawfully, there will be no issues." Meanwhile, residents in the Kingdom told Saudi Gazette that the news of currency demonetization late in night came to them as a shock, prompting a flurry of activities on social media with people hailing the government's decision. "This is to clean up a system that has relied on cash to pay bribes and to avoid taxes and now people will be accountable for keeping stacks of cash. High time this happened and I applaud Modi's commitment to act against black money," Ghalia Ali, an Indian national living in Dammam told Saudi Gazette. People holding huge amounts of cash will find it hard to exchange the currency notes at banks with the new set limits and they will need to explain where they got it which risks tax investigations. "You know he is looking after poor people and their needs. That is because of his background and his struggle, we know India has been a victim of black money and the poor mainly loses because of it. But now Modi is introducing a system to eradicate the root of corruption and we are with him," Shoaib Ansari, an Indian expat told Saudi Gazette. The prime minister said the measures were aimed at curbing the disease of corruption and black money, which have taken deep root. Priyanka Memon, an Indian national living in the Kingdom, said: "So now people can use their Rs500 and Rs1,000 banknotes for trains, milk, government hospitals and other government services shows these are the people who can afford only those services and Modi is granting them more accessibility." According to the announcement, people can deposit banknotes of Rs500 and Rs1,000 in their bank and post office accounts from Nov. 10 till Dec. 30. He also announced that new banknotes of Rs2,000 and Rs500 will be introduced soon. "Even if you're not a supporter, Modi has united all Indians in this historic move against corruption and black money. This is so important. "The Indian economy was running on black money and now we have a chance to cleanse it. We need to completely take it out of the Indian system," said Hussein Khan, an Indian expat living in Riyadh. "This is bad news for people who are living and running their businesses on black money. Many Indian nationals living abroad also play a part in running black money racket and now are in a state of shock and panic. However, it is bad for businesses in India right now especially in the upcoming days, and for those retailers selling on a daily basis. "But we have to understand that it is better for the future of the country and even though our sales in India are reaching a deadlock, we have to be patient," said Mohammad Asif, an expat from Kerala who runs a convenience store back home that has experienced a decline in sales as of today. ATM withdrawals have been restricted to Rs2,000 per day and withdrawals from bank accounts limited to Rs10,000 a day and Rs20,000 a week. Banks will remain closed tomorrow and ATMs will also not function tomorrow.
