On Tuesday, India’s government announced a new limit on the amount of cash that can be purchased at a time of national emergency.
The move comes amid rising concerns over a surge in counterfeit currency, which is thought to have reached over $1 billion in circulation.
The government has said that cash transactions can only be made in denominations of 500 and 1,500 rupee, but that can change.
So, the new limit will be applied only for transactions of Rs 1 million and more.
In a statement, the government said that the new restrictions will be effective from October 1.
“This will also help prevent the black market of counterfeit currency from reaching new levels,” the statement said.
“The new limits will be applicable in the financial year starting October 1, 2019.”
However, it did not clarify whether the new limits would apply to cash withdrawals or to purchases of any kind.
This comes amid increasing fears that counterfeit currency has reached a new peak in the country, and as the country is grappling with its worst financial crisis in living memory.