Startups in India can’t stop rejoicing, and it has nothing to do with Trump

Photo credit : anandkrish16 / 123RF.

As the world geared for the US elections, the Indian government launched a howitzer of its own. In a surprise move, Indian Prime Minister Narendra Modi on Tuesday announced that banknotes of 500 and 1,000 rupee denominations would be withdrawn from circulation at midnight, as the government cracks its whip against corruption and counterfeit currency.

Chaos ensued. Cash machines were either closed or seeing long lines, and the initial few hours resulted in general panic as citizens scurried online for details and debates. Ecommerce companies including Amazon, Uber and others stopped cash on delivery options, or temporarily halted them.

#News: @Flipkart stops accepting old ₹500 & ₹1000 #currencynotes on CoD payments. Read more: https://t.co/uofKYe8cQ6 pic.twitter.com/e2PPdEI4ib

— Flipkart Stories (@FlipkartStories) November 9, 2016

Some had great beginnings, others went out with a bang. One way or another, it was a great ride.#WhatJustHappened pic.twitter.com/Iq6c2AXteo

— Ola (@Olacabs) November 9, 2016

Reuters reported that even the head of the country’s largest government-backed bank had not had much time to act on the government’s decision

“We have handled demonetisation earlier and will do so again. Tomorrow banks will remain closed in order to withdraw these notes from counters and ATMs. We will strive to restock ATMs at the earliest and make them operational,” chairman Arundhati Bhattacharya told the news wire late on Tuesday.

The government did not explain the reason decision being announced so suddenly, but the most plausible theory is that since the move is designed to lock out money that is unaccounted for or may have been gotten illegally, a heads-up about the change would have rendered the entire process fruitless.