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India has pulled select denominations of its currency twice before.
16, 1978, deemed the Rs1,000, Rs5,000 and Rs10,000 notes illegal for the second time. For the most part, Modi’s measure mirrors Desai’s—except this time, he has the backing of his RBI governor, Urjit Patel, who applauded Modi’s “very bold step” addressing concerns about the “growing menace of fake Indian currency notes.” But that doesn’t mean all the skeptics are off his back.
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Then, in 1977, the Janata Party coalition government came into power.
A year into the government’s term, party leader Morarji Desai was more bullish about cracking down on counterfeits and black money.
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