The International Monetary Fund (IMF) has welcomed India’s efforts to fight corruption through the currency control measures announced this week.
It, however, stressed that the transition needs to be managed prudently to minimize disruptions in the economy.
“We support the measures to fight corruption and illicit financial flows in India. Of course, given the large role of cash in every day transaction in India's economy the currency transition would have to be managed prudently to minimise possible disruption,” IMF spokesman Gerry Rice said here on Thursday.
“I am just saying that when countries make these kinds of move, which is not exceptional - countries do this quite often - the transition needs to be managed very well,” Rice added.
Prime Minister Modi on Tuesday evening announced that currency notes of Rs 500, and Rs 1000 will not be a legal tender after midnight of November 8. The government has said it has been done to fight counterfeit currency, black money, and funding to terror.