500 & 1000 rs notes stopped from tonight

[mishra]

2 hours ago, Rohit S. Ambani said:

Ground reality is different, I went to bank today with cheque of Rs 24,000, they said max I can withdraw is 4000, I stood for 2 hour in long queue for 4000. Currency exchange was restricted to 2000. I am talking about Corporation Bank. Only SBI bank's 2 ATM are in operation in my city. ATM is also restricted to 2000/day. Worst thing is Rs. 2000 note, all people got today was 2000 note, very few people were given 20 rupee notes (20x200), no sign of 50, 100. Nobody has seen newer 500 note. Does it even exist?

 

All you keyboard Modi warriors, there are 500 plus towns in India, Do you think all banks and branches are under scrutiny of media and government? Bank Managers, heck even bank security guards are acting like mafia in such towns, winters have arrived in North India and people were allowed only in groups of 5 inside, there were more employees inside the bank than customers, they simply don't have empathy for people rotting outside bank in harsh weather, they were working at snails pace taking too many breaks, having tea multiple times.

 

Shame on all of you educated lot.

 

 

 

 

.

1. Everyone i know is not struggling. And I know people living in cities and know whole village of over 2000 families.

issue is only in case of wedding, we have a wedding in our village but other villagers and bank guys did help. Not whole village  stood in queue. Just few people.

and that is ground reality. 

All that is required is cash exchange only queue need to be made separate. 

2. Saw nftv report from a rural village accessible via personnel transport. Reporter seem to have no idea how villages work and asking questions like if shop is closed how are you surviving. Villagers dont shop evryday. They survive on what they produce

[Singh bling]

Most of people don't even understand what type of economic Tsunami will be coming if cash crunch is not resolved.

 

2000 rupees notes in the hand of poor is useless as hardly anybody will give them change if they purchase 50 -100 Rs. items.This will result in black marketing of change

 

2) Large number of India don't have any knowledge of debit credit cards or Paytm , Mobikwik etc. Cash is their favourate medium.

 

3)This move will take out 86% of currency out of circulation and it will take 6-7 months for RBI to replace it.

 

4) Countries which had already done this had bad impact on economy.

5) Even after 7 days the replaced 500 note is not in the market

 

Stop seeing moves as pro Modi or anti modi. If Govt is able to replace cash at fast pace then it will benefit O/W it could badly backfire and result in deadly consequence

[Singh bling]

4 minutes ago, mishra said:

1. Everyone i know is not struggling. And I know people living in cities and know whole village of over 2000 families.

issue is only in case of wedding, we have a wedding in our village but other villagers and bank guys did help. Not whole village  stood in queue. Just few people.

and that is ground reality. 

All that is required is cash exchange only queue need to be made separate. 

2. Saw nftv report from a rural village accessible via personnel transport. Reporter seem to have no idea how villages work and asking questions like if shop is closed how are you surviving. Villagers dont shop evryday. They survive on what they produce

People at present are in Josh so they are helping . Even I offered 100 rupees notes to my tenants. But after some time it will become routine if notes are not replaced .Cash crunch is very bad for economy

[jalebi_bhai]

 

[mishra]

1 hour ago, Singh bling said:

People at present are in Josh so they are helping . Even I offered 100 rupees notes to my tenants. But after some time it will become routine if notes are not replaced .Cash crunch is very bad for economy

 

What you are discussing is totally different. However you are forgetting is effectively, Government just needs to reprint 86% of notes in 2000 and 500 denominations. Government RBI is intentionally not telling how much they will reprint. They know exactly how many notes are in circulation and have a estimate of how much is actually white.

 

Any shortcoming on GDP aspect will be easily covered in next quarter

Advantages outweighs inconvenience.

Its a moove towards banking System and accounted money. Its change in thinking.

Also, a lot of people are against corruption and black marketing, problem was whom not to arrest. Everyone you see is involved in some form of corruption,there was no starting point, Everyone was corrupt. After demonitisation, Everyone is clean. Now on you can start arresting the crooks and send message.

 

Edited November 17, 2016 by mishra

[Tibarn]

1 hour ago, jalebi_bhai said:

 

Gurumurthy is slightly off on cashless economy. It's not possible right now, ie next few years, but it's certainly possible eventually in India. 

[jalebi_bhai]

3 hours ago, Tibarn said:

Gurumurthy is slightly off on cashless economy. It's not possible right now, ie next few years, but it's certainly possible eventually in India. 

I believe he corrected himself though. Called for a cash-control economy. But yea, cashless is not possible atm. 

 

What do you think about his suggestion of using non-banking financial institutions as credit providers to SMEs? He doesn't seem happy with the MUDRA banks.

[tweaker]

Demonetisation: Oversmart politicians using cooperative banks to launder money

You will be surprised to know that how few cooperative banks, mostly in rural areas, are bypassing banking system norms to fight the black money issue. After PM Modi launched the demonetisation drive, these banks which are not computerised and still use physcal ledger books are taking cash from customers and opening backdated fixed deposits (FDs). According to a TOI report, they are also issuing demand drafts (DDs) and pay orders against cash, mostly from politicians. The deal between these cooperative banks and people buying DDs and pay orders with cash is that they will not present these instruments to any other bank to encash. However, after March 31, the issuing cooperative bank will cancel the DDs and pay orders, and return cash to the holders of those instruments in the new notes.

[BeautifulGame]

At this rate this will boomerang badly on the govt .

Hope not becoz whether u like BJP govt or not , can see the massive good in this.

But Govt should have decided to print enough 100 rs notes before going with this .Thats a huge lack of hindsight on their part .

[rkt.india]

8 hours ago, Singh bling said:

Most of people don't even understand what type of economic Tsunami will be coming if cash crunch is not resolved.

 

2000 rupees notes in the hand of poor is useless as hardly anybody will give them change if they purchase 50 -100 Rs. items.This will result in black marketing of change

 

2) Large number of India don't have any knowledge of debit credit cards or Paytm , Mobikwik etc. Cash is their favourate medium.

 

3)This move will take out 86% of currency out of circulation and it will take 6-7 months for RBI to replace it.

 

4) Countries which had already done this had bad impact on economy.

5) Even after 7 days the replaced 500 note is not in the market

 

Stop seeing moves as pro Modi or anti modi. If Govt is able to replace cash at fast pace then it will benefit O/W it could badly backfire and result in deadly consequence

In our area, banks are giving 100 rupees notes, not 2000. In fact, govt had asked banks to start dispensing 100 rs notes a week ahead.

[beetle]

Petrol pumps to dispense money through debit and credit cards.

Exchange amount reduced to rs 2000 at a time.

Good moves.

[tweaker]

A jeweller flew from Bengaluru to Goa, checked into a five-star hotel, sold jewellery worth Rs 45 lakh to a doctor staying in the same hotel, only to be busted by the income-tax (I-T) sleuths. A search on the buyer led to recovery of Rs 3 crore worth of jewellery.
 
This is one of the modus operandi by black money holders to use their scrapped Rs 500 and Rs 1,000 notes, cracked by the tax department since the government’s demonetisation move on the midnight of November 8.
 
“A door-to-door sale is being offered by jewellers to their old or loyal customers. We will nab them all, irrespective of the cities they are carrying out these rackets,” said a senior Central Board of Direct Tax (CBDT) official.
 
The I-T department says it is getting black money holders dodging the system under its lens. They have, it says, been using innovative ways to get rid of old Rs 500 and Rs 1,000 currency notes. In one instance, the department found sale of a diamond necklace was split into four bills, with different permanent account numbers (PANs).
 
Jewellers are formally required to take the PAN of a buyer purchasing jewellery for more than Rs 2 lakh.
 
The department has sent around 600 notices to jewellers across 25 cities, asking them to detail daily sales. Those in major cities are under scrutiny in this regard; this could later extend to other cities.

The sources said people are sending up to 25 servants to exchange notes from different banks.
 
In response, the finance ministry first made it mandatory to apply indelible ink on persons exchanging notes and, then, on Thursday, lowered the limit of money that can be exchanged from Rs 4,500 to Rs 2,000.
 
The sources said surveys are being conducted to detect errant assessees. “They are misusing the generosity,” said one.
 
CBDT Chairman Sushil Chandra is learnt to be doing regular video conferencing, with I-T officers taking updates from the surveys.

[Singh bling]

9 hours ago, mishra said:

 

What you are discussing is totally different. However you are forgetting is effectively, Government just needs to reprint 86% of notes in 2000 and 500 denominations. Government RBI is intentionally not telling how much they will reprint. They know exactly how many notes are in circulation and have a estimate of how much is actually white.

 

Any shortcoming on GDP aspect will be easily covered in next quarter

Advantages outweighs inconvenience.

Its a moove towards banking System and accounted money. Its change in thinking.

Also, a lot of people are against corruption and black marketing, problem was whom not to arrest. Everyone you see is involved in some form of corruption,there was no starting point, Everyone was corrupt. After demonitisation, Everyone is clean. Now on you can start arresting the crooks and send message.

 

And how much time will take to replace 86% of money? Estimates are that it will 6-7 months.2000 denomination is totally useless in the hands of poor people as if anybody buy vegetables worth Rs.50 then No way vendor will return 1950 .

Advantages Outweighs only if money is replaced quickly O/W terrible disaster especially in rural economy is waiting

[Singh bling]

2 hours ago, rkt.india said:

In our area, banks are giving 100 rupees notes, not 2000. In fact, govt had asked banks to start dispensing 100 rs notes a week ahead.

Same here , but the fact is country don't have enough supply of 100 Rs. notes to replace 500.Cities , towns will mostly be covered , but rural India will left behind. 

None of poster above is answering my question that how will poor people purchase things worth Rs. 50-100  from 2000 note, as this will require huge amount of small currency notes which are not in supply in country.

 

The only option I see is purchase from known shopkeepers and and either take credit or give them advance payment.But then there is lot of migratory labour  for whom it will be difficult to get creit

[Mariyam]

http://www.business-standard.com/article/opinion/akash-prakash-demonetisation-impact-on-investors-116111701671_1.html

 

Lengthy, but a good read.

[beetle]

I have heard Arhar Dal prices in UP have dropped to half .

Inflation is likely to go down.

[mishra]

36 minutes ago, radhika said:

I have heard Arhar Dal prices in UP have dropped to half .

Inflation is likely to go down.

Refer my post 218 and 229. I am not a economist and can easily forecast that. What I dont understand why our economists are unable to bring calm to nation.

[mishra]

1 hour ago, Singh bling said:

And how much time will take to replace 86% of money? Estimates are that it will 6-7 months.2000 denomination is totally useless in the hands of poor people as if anybody buy vegetables worth Rs.50 then No way vendor will return 1950 .

Advantages Outweighs only if money is replaced quickly O/W terrible disaster especially in rural economy is waiting

Its on assumption that we will go back to old economy of black marketing and once again coffers of money hoarders are full. That wont be case. I am sure if Government ever releases final figure, you will understand the scale of black marketing India is suffering with.

 

Thats not outweigh. You want it all without inconvenience. You are advocating for no inconvenience. Bi product of this 50 days inconvenience is, it will nudge the nation to start using banking system more aggressively.  I think those who planned this know a thing or two about nudge theory too.

 

 

Edited November 18, 2016 by mishra

[Singh bling]

2 hours ago, mishra said:

Its on assumption that we will go back to old economy of black marketing and once again coffers of money hoarders are full. That wont be case. I am sure if Government ever releases final figure, you will understand the scale of black marketing India is suffering with.

 

Thats not outweigh. You want it all without inconvenience. You are advocating for no inconvenience. Bi product of this 50 days inconvenience is, it will nudge the nation to start using banking system more aggressively.  I think those who planned this know a thing or two about nudge theory too.

 

 

According to Govt report ONLY 6% of BLACK MONEY is in the form of cash. With prevailing market rates of 20-30% cut many will be able to change it.So at best 2-3% black money will be affected.

 

Now coming to drawbacks..Legitimate business is standstill. News channels are already reporting that Farmers wholesalers have stopped supply so vegetables and fruits are going to shoot up in next coming days.

Quote

HT reported on Thursday the currency switch could result in hardship for low-income groups as only 28%-32% of Indians have access to financial institutions, including post offices and banks. Further, 33% of the 138,626 bank branches are in 60 Tier-1 and Tier-2 cities, leaving rural India at a huge disadvantage.

http://www.hindustantimes.com/india-news/cash-has-only-6-share-in-black-money-seizures-reveals-income-tax-data/story-JfFuTiJYtxKwJQhz2ApxlL.html

As far black marketing is concerned , everywhere smaller black market is running of note exchange

 

Quote

http://www.cnbc.com/2016/11/15/india-rupee-restriction-boost-bitcoin-digital-currency.html

And now people will not stock cash but will move to other things like Bitcoins to store black money

[Singh bling]

Quote

Demonetisation: Nearly 50 people dead, but Modi govt views it as 'minor' inconvenience

http://www.firstpost.com/politics/demonetisation-over-30-people-dead-but-modi-govt-views-it-as-minor-inconveniences-3109360.html