Jump to content
Sign in to follow this  
tweaker

500 & 1000 rs notes stopped from tonight

Recommended Posts

Best thing out of this is that the ISI's counterfeit currency will take some time before they can replace their "easy" money.  

 

And "kaala dhan" holders will have some trouble converting it on short notice.  I like how they sprung this November surprise.  

 

Gutsy move by Modi to risk alienating his primary constituency of business people.

Share this post


Link to post
Share on other sites
5 minutes ago, jalebi_bhai said:

+1.

 

Sardar Patel and Shastri need more recognition. 

Sardar, Netaji, Ambedkar, Lal-Bal-Pal, Baba Ramchandra, Rash Behari Bose, etc, etc. There were so many, yet we learn hagiographies of Gandhi-Nehru only.

Edited by Tibarn

Share this post


Link to post
Share on other sites
7 minutes ago, Tibarn said:

Sardar, Netaji, Ambedkar, Lal-Bal-Pal, Baba Ramchandra, Rash Behari Bose, etc, etc. There were so many, yet we learn hagiographies of Gandhi-Nehru only.

Plus the easiest way to get recognition & interest is to put people's face on money.

Is it any coincidence that Americans know more about Ulysses Grant than John Adams ?

Share this post


Link to post
Share on other sites
7 minutes ago, Tibarn said:

Sardar, Netaji, Ambedkar, Lal-Bal-Pal, Baba Ramchandra, Rash Behari Bose, etc, etc. There were so many, yet we learn hagiographies of Gandhi-Nehru only.

This was a very good opportunity to do so, honestly speaking. It would also raise awareness about their deeds. 

Share this post


Link to post
Share on other sites

It appears as if Modi did a step by step process. First, he asked ppl to declare blk money, allowing them to officially convert their money to white. Now this so those who did not have only themselves to blame

Edited by zen

Share this post


Link to post
Share on other sites
58 minutes ago, jalebi_bhai said:

This was a very good opportunity to do so, honestly speaking. It would also raise awareness about their deeds. 

Ultimately the best way is textbooks in my opinion, but both Irani and Javedkar just collect salary instead of doing anything big IMO. They won't even touch RTE, as Javedkar already said. That's going to cost Modi a lot of votes in 2019.

Share this post


Link to post
Share on other sites
3 hours ago, Tibarn said:

Sardar, Netaji, Ambedkar, Lal-Bal-Pal, Baba Ramchandra, Rash Behari Bose, etc, etc. There were so many, yet we learn hagiographies of Gandhi-Nehru only.

Why they cant different images on different series .

Or they can put different images on different notes

 

Shastri on 500,Bose on.1000,Patel on 1000

Share this post


Link to post
Share on other sites
6 hours ago, Singh bling said:

The biggest deadly impact will be on daily wage labourers. Tomorrow nobody will hire them , work will stop Apart from Hifi cities electronic money is not known , means saara business thup.Good luck to all poor people , because if things don't get back to normal then people will start suffering terribly

The poor will have to compulsorily open bank accounts now with all the bulk 500 and 1000 note cash they have.

Share this post


Link to post
Share on other sites
22 minutes ago, tweaker said:

Why they cant different images on different series .

Or they can put different images on different notes

 

Shastri on 500,Bose on.1000,Patel on 1000

Yep, that's a good idea, the US puts different people on different size bills; We could change the figure yearly for each new set of notes printed. 

Share this post


Link to post
Share on other sites
7 hours ago, Singh bling said:

Oh madam lagta hai aap bahut khadoos hain, apne jaankaar logon se credit pe samaan le lo koyi regular customers ko mana nahi karta  baaki saare malls credit card pe sabzi dete hain

Mein udhar nahi leti:alberteinstein:.......husband will scold if I do.:fear1:

Chill man........things are fine. Online sabzi khareedenge.

Fridge is full.Bread nahi to cake bana ke khaenge!!!!:bebored:

Waisay I found 3 hundred rupee notes in hubby's purse. I am rich:money:

Share this post


Link to post
Share on other sites

Great move, but need to really consider whether one should be introducing 2000 rupee notes. Since the push is towards moving the country towards a cashless economy, one should really keep cash denominations low to make it incredibly inconvenient for those dealing with cash transactions.

 

Even remove 100 and 50 rupee notes from circulation and if you really wanted to pay cash then 10 rupee notes would be the largest denomination. Let us see how many notes can black marketers really stack up in their backyards!

Share this post


Link to post
Share on other sites
4 minutes ago, Texan said:

Great move, but need to really consider whether one should be introducing 2000 rupee notes. Since the push is towards moving the country towards a cashless economy, one should really keep cash denominations low to make it incredibly inconvenient for those dealing with cash transactions.

 

Even remove 100 and 50 rupee notes from circulation and if you really wanted to pay cash then 10 rupee notes would be the largest denomination. Let us see how many notes can black marketers really stack up in their backyards!

Difficult in a country where a huge population is illiterate .A huge population of of older generation will be left helpless or dependent on children or strangers to help with money issues.A lot of card frauds in the country happen because the older generation is not comfortable  even using ATM cards. They ask for help from strangers. Crooks lurk around ATMs looking for helpless old people.My father hyperventilates every time he had to change his pin.

 

Online  transactions will also have to be made more secure.So do plastic payment.Recent findings of hacking of ATM cards of many banks (numbers were staggering) have made people vary of using cards everywhere.I have stopped using debit card and only using credit card for now.

 

Share this post


Link to post
Share on other sites
27 minutes ago, radhika said:

Difficult in a country where a huge population is illiterate .A huge population of of older generation will be left helpless or dependent on children or strangers to help with money issues.A lot of card frauds in the country happen because the older generation is not comfortable  even using ATM cards. They ask for help from strangers. Crooks lurk around ATMs looking for helpless old people.My father hyperventilates every time he had to change his pin.

 

Online  transactions will also have to be made more secure.So do plastic payment.Recent findings of hacking of ATM cards of many banks (numbers were staggering) have made people vary of using cards everywhere.I have stopped using debit card and only using credit card for now.

 

True. But the only way you can wipe out black money is by making every transaction electronically tracked. We should still keep small denominations in circulation for those averse to electronic transactions and those who need more liquidity. So for small transactions such as buying fruits, vegetables, generic medicines, etc. these currency notes should suffice. 

 

But for big ticket transactions of 5000 or over it is time we make them as inconvenient as possible to have cash transactions if we cannot eliminate them altogether. I mean how many people are going to carry 500 notes of 10 rupees to pay 5000 rupees. One more thing that is probably in the plan and needs to be implemented is that card transaction fees should be bourne by the government. I think it will really be a very small amount compared to the additional tax they will collect because of transactions being tracked electronically. 

Share this post


Link to post
Share on other sites

Nearly 40 per cent of India's economy is driven by small- and medium-sized enterprises that largely run on cash transactions. Economists said the move could impact these businesses, and in turn have a knock-on effect on economic growth.

 

Market analysts have welcome the move. "If you look at India's economy point of view it's a very good measure," said Saravana Kumar, Chief Investment Officer, LIC Mutual Fund.

 

"Inflation will moderate and it's going to control the fiscal deficit. Black money will come down drastically."

 

But some analysts have said that there could be short-term disruption in the economy. "There would be disruption - Short term pain for long term gain," tweet market analyst Ambareesh Baliga.

Demonetization will slow down economy in short run but lead to surge in bank deposits and that could reduce interest rates, said market analyst Sandip Sabharwal in a tweet.

 

Analysts say real estate stocks could be hit in today's market action. Property market could be adversely impacted following the government's decision to demonetise Rs 1,000 and Rs 500 notes, say analysts.

Share this post


Link to post
Share on other sites

Hours after Prime Minister Narendra Modi on Tuesday announced the demonetisation of high value notes, the Reserve Bank of India (RBI) on Tuesday issued new series of notes for the Rs 500 and Rs 2,000 denomination with improved features and newer sizes.

 

The Rs 2,000 note, which is a first under the denomination, will be called the 'Mahatma Gandhi (New) Series' and has the motif of the low-cost mission to Mars, the Mangalayan, on the reverse, the RBI said.

 

The base colour of the note will be magenta and the size of the note will be 66 mm by 166 mm, it said.

 

The new design in the Rs 500 denomination will be in a different colour, size, theme, design and location of security features, it said.

 

The note, measuring 63 mm by 150 mm will be in a new colour --- stone grey and the predominant theme will be Delhi's Red Fort, it said.

 

Both the new designs, Rs 500 and Rs 2,000, will be very friendly towards the visually-impaired by having features which make it accessible for all sections.

 

Earlier, Governor Urjit Patel said that the central bank has ramped up production of the new series of notes under the newer series.

 

The RBI has also started a helpline number for the citizens who may face any difficulties, economic affairs secretary Shaktikanta Das said.

Citizens can reach out to the RBI on 022-22602201 022-22602944 starting on Wednesday for any doubts and clarifications, he said.

Share this post


Link to post
Share on other sites

Opposition parties including Congress and Trinamool Congress on Tuesday attacked the government's sudden decision to abolish Rs 500 and Rs 1,000 notes as it will cause problems to common man while BJP chief Amit Shah termed it a move which will immensely help in tackling corruption.

 

West Bengal Chief Minister Mamata Banerjee lashed out at Prime Minister Narendra Modi following his announcement that Rs 500 and Rs 1,000 currency notes will cease to be legal tender, dubbing it "drama" to divert attention from his failure in getting back black money from abroad.

 

She said the decision is "financial chaos" and "disaster" let loose on the common man.

 

"The PM could not get back the promised black money from abroad from the rich so a drama to divert his failure. "While I`m strongly against black money, corruption, deeply concerned about common people, small traders. How they will buy essentials from Wednesday? 

 

"Want to know from PM how my poorest brothers, sisters,who`ve received their week`s hard earned wage in one 500 rupee note will buy ata, chal, tomorrow," she said in a series of tweets.

 

"Heartless and ill-conceived blow on the common people and the middle class in the fake name of anti-corruption," she added. 

 

Congress spokesperson Randeep Surjewala told reporters that the government`s move to introduce Rs 2,000 note defeats its own argument on black money. 

 

"Congress has always supported any step against black money. But paddy has already been cut and wheat and Rabi crops being sown. What happens to those who are going to buy necessary articles for marriages including jewellery, clothes, etc? Are you not putting a huge burden on them by putting a limit on how much money can be withdrawn?" 

 

"Is the banking system in our country ready to tackle such a situation? Government has to answer many questions," he said. 

 

Congress spokesperson Manish Tewari said the move of government to abolish Rs 500 and Rs 1,000 notes was a "nuclear trident at poor people of India" and described Prime Minister Narendra Modi as a "modern day Tughlak".

Tewari said in a series of tweets that large sections of the population were cash dependent and had no access to banking facilities. 

 

"LOL - Mohd Bin Tughlak scraps 500/1000 Rupees notes. Next capital of India will be shifted from Delhi to Daulatabad. Tughlak`s spirit resurrects," Tewari said. 

 

"Modern day Tughlak has thrown a nuclear trident at poor people of India. Rs 1,000 of today is what Rs 100 was 20 years back. Insanity!"

 

Janata Dal-United leader K C Tyagi hoped the government has taken all steps so that there is no inconvenience to people. 

 

Communist Party of India-Marxist Rajya Sabha member from West Bengal Ritabrata Banerjee tweeted, "Gimmicks are not the solution to real menaces facing the suffering millions. The commoners will be the ones to be harassed most."

 

"Most of the #BlackMoney are in the foreign banks. Why the PM failed to bring it back in the last two-and-half-years. The commoners will suffer in the coming days," he added. 

Andhra Pradesh Chief Minister N Chandrababu Naidu welcomed the decision. "I welcome @narendramodi Govt`s historic decision to ban Rs 500 and Rs 1,000 notes. This is bold step towards eliminating corruption," he said.

Amit Shah said that Modi has yet again demonstrated his unwavering commitment to promises he made to people of India.

"Announcements made by PM @narendramodi are exactly what is needed to uproot corruption, black money, hawala & fake" currency rackets," he said, complimenting Modi for taking "tough but timely and path-breaking measures".

Share this post


Link to post
Share on other sites

This is a great step for curbing black money (acquired legally but tax not paid) and dirty money (acquired through illegal source) in India.


 
The move is so unexpected that people have no time at all to remove their black money and now this would become simply a waste of paper for them.

 

I can’t imagine any better move than this to eliminate black money from the country.

 

However, its immediate impact is likely to be very adverse on the stock market and the sectors like real estate where lot of black money is used. Its impact on the other sectors would be as following.

 

The sale of gold and diamond jewellery would drastically decline. This means less foreign currency outgo and hence better balance of payment situation.

 

Corruption would be reduced drastically.

 

Credit card and other legal transactions would go up

 

Taxes (Income Tax, Excise, Service tax and Sales Tax) would go up substantially since more transaction would be in white

 

Criminal activities would reduce

 

Use of illegal money in election would be reduced drastically

 

Property rates would reduce drastically

 

There would, however, be a lot of chaos in first few days. Then everything would fall in its place.

Share this post


Link to post
Share on other sites

Further Planning of modi gov. on this and issued internal guideline to banks and postoffices........ 

 

1. If u deposit money in bank after 9th nov and cumulitive balance is >5 lakh than bank will put your account in suspicious list and can freeze your account untill income proof not provided with filed return copy. 

 

2.PAN card update account will be shared with income tax department from where you can get a show cause notice of income and can ask reason for not filing return or less amount filing reason.

Share this post


Link to post
Share on other sites
13 hours ago, laaloo said:

But daily wage labourures  hardly make more than 100 rupees a day. How will it impact them? Or do they make more than that?

Labour rate for unskilled labour Rs.400  minimum , Mason 600 , painter 600 , These are gurgaon rates , heard that this is not much different from Delhi and Noida

Share this post


Link to post
Share on other sites

State Bank of India said on Wednesday that its branches will remain open tomorrow with extended hours of work up till 6 pm.

 

While most banks will remain closed tomorrow, the state lender has chosen to remain open tomorrow stating that they have enough of Rs 100 notes in their ATMs and bank branches.

 

SBI said that there will be no limit on deposit of Rs 1,000 and Rs 500 into the customer accounts.

 

Customers will be able to withdraw up to Rs 10,000 from banks tomorrow however their ATMs will become operational only from November 11.

Further when the ATMs become active, customers would be able to withdraw upto Rs 2,000 per day.

 

This announcement was made after PM Modi publicised the demonetisation of old Rs 500 and Rs 1,000 notes from midnight of November 8.

 

Banks were instructed to remain closed on November 9 and November 10 after this announcement as new notes of Rs 2,000 and Rs 500 will be issued on November 11.

 

PM Modi said that thereafter ATM withdrawals will be restricted to Rs 2,000 per day and withdrawals from bank accounts will be limited to Rs 10,000 a day and Rs 20,000 a week.

Share this post


Link to post
Share on other sites

Grey Anatomy 


A look at how cash deals hoodwink authorities by obscuring the trail of slush funds.

 

Black money
Black money is income not disclosed to the government to avoid paying taxes

In cash we trust
About two-thirds of India’s GDP run on cash—about Rs 88 lakh crore a year. For instance, grocery is bought and household services like carpentry etc are paid in cash.

 

Black realty deals
About a third of India’s black money transactions are believed to be in real estate, followed by manufacturing and shopping for gold and consumer goods.

 

How the Dirt Gets Washed

 

1. Under invoicing

Supply
Firm Y Supplies goods worth Rs 1 lakh, but does not present the bill

Billing
Firm Y presents a bill of Rs 60,000 to firm X for the goods it supplied

Cheque
X presents a cheque of Rs 40,000 –after deducting Rs 20,000 as tax—to Y

Due amount
A month later X pays Rs 40,000 to Y in cash, which is not accounted

2.Investment in unlisted private companies

 

Borrow
X “lends” Rs 10 crore in “cash” to Firm Y through a convertible debenture

Investment
Firm Y uses the “cash” lent by X to pay vendors in cash

Sell
Firm Y accepts payment from its final consumers only in cheque

Convert
X “converts” Rs 10 crore he had lent into equity shares of Y

3.Property Deals

 

Sell
X sells a plot of land to Y at Rs 20 crore

Pay
Y pays 50 perent (Rs 10 crore ) in cash and the balance in cheque.

 

Deposit
X deposits the cheque of Rs 10 crore and withdraws part in cash

 

Divert
X Places a request before bank to for a demand draft ofa huge amount to purchase gold for business

 

Hawala


Hawala is an underground banking system based on trust whereby money can is available internationally without actually moving it or leaving a record of the transaction.

 

Money laundering


Money laundering is the process of concealing the source of illegally gotten money.

 

Dirty money moves rapidly across border to obscure the audit trail, mostly using the hawala route.

 

Stages of money laundering

 

STAGE 1: Placement
Separate the money from the source and place it in the financial system. Eg. making small cash deposits in a bank account.

 

STAGE 2: LAYERING
Create layers of transactions to disguise the origin and obscure the audit trail. E.g rapidly moving funds across different accounts.

 

STAGE 3: INTEGRATION
Reintroduce the funds in the legitimate financial system to enable further use. E.g Setting up front companies and using false invoicing.

Recent real instances of black transactions

· More than Rs 700 crore were transferred among 30 bank accounts in an inter-account transfer in a single day.

· An individual deposited a cheque of more than Rs 14 crore in his dormant bank account claiming it be proceeds from sale of property. Part of this amount was withdrawn in cash and request placed before bank to for a demand draft of a huge amount to purchase gold for business.

 

· A husband and wife paid insurance premium of over Rs 2.5 crore for 15 life insurance policies, out of which Rs 80 lakhs was paid in cash in multiple installments of less than Rs 50,000.

Share this post


Link to post
Share on other sites
21 minutes ago, someone said:

This positive move and yet, some reactions shows the mental inaptitude of some political parties. Namely AAP, CPM, TMC. For them, development is making sure hatred and fears remains. Even Bihar CM for all his problems, supported such move.

Al their money and funding got erased in one day...what can we expect from them.

With some states going  for elections soon...this is a brilliant move.Lets see how these parties deal with only legal fundings.

Share this post


Link to post
Share on other sites
3 hours ago, someone said:

This positive move and yet, some reactions shows the mental inaptitude of some political parties. Namely AAP, CPM, TMC. For them, development is making sure hatred and fears remains. Even Bihar CM for all his problems, supported such move.

He was the only one to congratulate on surgical strikes too. :nice: 

Share this post


Link to post
Share on other sites

If you have considerable amount of cash at home, there's no need to panic just yet, especially if it's hard-earned money and well accounted for. But now that the government has decided to do away with older notes (both Rs 500 and Rs 1,000), is there any way one can put it back into your bank account? Well yes, but to start with, keep your PAN card handy. 

 

Here's what the rules say: 


Depositing in a bank where you have an account 


The amount that can be deposited in one-go into the account depends on your KYC compliance with the bank. If the KYC is complete, there is no limit on the quantity and value of older notes that you can put into your account. However, in accounts where the compliance with KYC norms is incomplete, a maximum of Rs 50,000 can be deposited. 

 

Depositing in a bank where you don't have an account 


The older notes can be deposited into any new bank account in accordance with the standard banking procedure, with a valid ID proof. 

 

In both the above instances, the older notes can be deposited till Friday, December 30, 2016. 

 

Depositing in a third-party account 


The older notes can even be deposited into a third-party account. This, however, is subject to a specific authorisation by the account holder. Here also, one needs a valid ID proof.

 

In case you don't have an account, you can even ask your relative, friend with an account to deposit cash into their account. In that case, the account holder (relative/friend) gives you the permission in writing. While exchanging, you should provide the bank with the evidence of permission given by the account holder and your valid ID proof. 

In case individuals are unable to deposit the cash-in-hand into the banks by December 30, an opportunity will be given to them to do so at specified offices of the Reserve Bank of India (RBI). They will be required to carry necessary documentations with them, as specified by the RBI. 

 

Conclusion 


The Income-Tax (I-T) Department will, in all likelihood, keep a track of such banking transactions, especially those happening from November 10, 2016. In case the I-T Department has any query, individuals with a proper and valid reason to explain the transactions need not worry. Accounts that have witnessed huge cash deposits and are not in sync with previous banking transactions, will, however, attract the attention of the I-T Department. 

 

Finance Minister Arun Jaitley has said that deposits of now-defunct old Rs 500 and Rs 1,000 currency notes in bank accounts will not enjoy any tax immunity and the land of law will apply on the source of such money. 

 

The transactions under the I-T lens already include cash deposits of Rs 10 lakh or more in a savings bank account. The sharing of data between the banks and the I-T Department will help the government in detecting any irregular banking operations. The government has reportedly issued orders to both the I-T Department and the banks to keep a track of all monetary transactions involving cash of Rs 2 lakh and above. 

Share this post


Link to post
Share on other sites

This led to a flurry of activity as people queued outside jewellery shops to buy gold. 

 

One can buy gold up to Rs 2 lakh in India without any identification. Reports came in that jewellers were accepting these illegal tenders well into Wednesday. This prompted the government to issue a stern warning to all erring jewellers. 

 

However, the biggest chunk of black money conversions are happening at dingy by-lanes of Chandni Chowk in old Delhi and Zaveri Bazaar in Mumbai, Business Standard reported. 

 

A money lender who wished not to be identified, said, "The rate has shot to 50%-60% yesterday." 

 

What this simply means is that anyone willing to covert their black money into legal tender of smaller denominations will get only 40% or 50% of their money and the rest will be the commission of these above mentioned agents. 

 

The Business Standard report also said that bankers were receiving calls offering flat 20% as a facilitation fee for exchanging old notes.

 

Jewellers too made a killing by taking the risk of accepting illegal tender well after Government declared it unusable. Jewellers across cities accepted illegal tenders at a huge premium. Gold was being sold at 15%-20% premiums. 

 

The prices of the precious metal zoomed to Rs 34,000 per 10 grams in Ahmedabad on Wednesday.

 

 

A jeweller at Zaveri bazaar said that they will continue accepting old notes of Rs 500 and Rs 1,000 and deposit them in the banks or exchange them for legal tenders, Business Standard report said. 

Share this post


Link to post
Share on other sites

It turns out, Anil Bokil, an Aurangabad-based Chartered Accountant had come up with this plan of banning 500 and 1000 rupee notes a long while ago. 

 

Bokil, a strong proponent of the theory of Artha Kranti, met with the PM in July this year to discuss some ideas to deter the accumulation of black money in the Indian economy. The appointment, which was stipulated to last for just 8 minutes, ended up being extended for 2 hours!

 

Bokil strongly believed that by rendering high denomination currency useless will promptly deter the build up of black money. 

 



Bokil also believed that the move would hinder the circulation of fake currency in our economy.

 

The ‘Artha Kranti Sansthan’, a group of crusaders who subscribe to the theory of ‘Artha Kranti’, have many such radical ideas that they would like implemented. For example, they want to completely scrap the current tax system in the country!

 

Let’s hope we do see more such revolutionary ideas implemented. This one definitely seems to be working! 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

Guest, sign in to access all features.

×