Indian 1000Rs and 500Rs notes banned from 08-Nov-2016

[Kal Muah]

Only a serious monetary crisis can riv a govt to resort to demonetization.

Explain how withdrawing a denomination is a monetary crisis... oh wait! dont explain, We dont care..

 

[PRC]

What do you suggest? 500 INR max? Keep in mind majority of Indians don't use plastic money.

Yes 500 INR max, I do support that. I do not see this step from Govt. as out of blue , disconnected step. I see this step as continuation of Govt. Jan dhan Yojana scheme whose imperative is to provide saving a/c with a debit card to every citizen. This discontinuation of currency is a well planned strategy by the Govt., there might be some valid reason to reintroduce 500 & 2000 currency denomination but as of now I cannot think of any. Will make more sense once all the information is made public and I do hope the Govt. will make foolproof policy against the mechanism of accumulating black money.

 

[hanuman]

this will help the already stocked black money
people like in yadavs of SP UP

this will also benefit BJP in elections

moreover having new notes will create a new series of black money

and I do not think that they will be able to track them

moreover the new hoarders are going to be people of a new party

problem which I see


a lot of white money of 500/1000 notes are going to go out of system

we do not have money to replace them

u need a lot of liquidity in present system in India

and without any money it will be like
people will hoard all of the rest mmoney
to buy things

and money will be in very short supply


we need to understand the seriousness

this will be taken back in 2-3 days

otherwise move over to barter system

or people will have no money in hand as cash to buy things

 

[Crixus]

Oh man what will happen to fake currency printing presses running in our neighbor hood ??????

 

[ranadd]

Only a serious monetary crisis can riv a govt to resort to demonetization.

I agree. Black money held in India is that huge. Frigures between 500Billion USD to 1.3 Trillion USD was thrown around casually. Never taxed. Land prices are sky rocketing day and night. That leads to less people being able to buy land for business.

So yes it is a serious crisis. Make no doubt.

And right now India's biggest commodity import, oil, is cheap. Top 10 economy in GDP and PPP. India is still poor due to her 1.2 Billion + pop. But still each year, millions are being pulled out of poverty. But its not enough. More needs to be done. Everyone needs to come out of poverty.

And also, UP election right around the corner. Modi didn't want candidate purchase to happen.

So yea, the iron was hot as hell. Strike now for best results.

Short term, there will be difficulties. Not the markets. They are not traded in liquid money. So yea, India Inc. won this round.

 

[PRC]

this will help the already stocked black money
people like in yadavs of SP UP

this will also benefit BJP in elections

moreover having new notes will create a new series of black money

and I do not think that they will be able to track them

moreover the new hoarders are going to be people of a new party

problem which I see


a lot of white money of 500/1000 notes are going to go out of system

we do not have money to replace them

u need a lot of liquidity in present system in India

and without any money it will be like
people will hoard all of the rest mmoney
to buy things

and money will be in very short supply


we need to understand the seriousness

this will be taken back in 2-3 days

otherwise move over to barter system

or people will have no money in hand as cash to buy things

The new currency notes are being introduced on 10th of Nov.

The banks and post office will be able to replace the old one.

For essential items, I do not see much problem, but for big ticket items there would be some impact which the common man needs to absorb.

 

[my2cents]

Then you are not appreciating boldness of this move.

Many Countries ,have derecognized legal tenders before, but no one has fixed such a sharp time limit on their derecognition. These notes have gone out of circulation in just 4 hours and would become completely worthless (even at bank) on 31st December (or is it 8th as you are typing).

This means that hoarders do not have opportunity of using time tested route of converting black money into white using small transactions over a period of time. Since there is a time limit upto which banks would accept these notes ,people could only convert very small proportion of their black money into white using convention laundering methods, and gold dealers also would not accept these notes as they too need to get rid of them as fast as possible.

It is not derecognition that is bold, but narrow time window for exchange that is bold. There is no way in hell that people would rooms filled of black money in high denomination notes could launder all of their money in such a short period of time without getting caught.

How much of black money are we talking about?? Let us say one trillion rupees. Say half of it is converted. Now we have a situation wherein half trillion rupees of shortfall occurs in circulation. Will that not cause deflation in the overall economy??

 

[Terminator]

Wassap and social media is flooded with Jokes of this move.

 

[JanjaWeed]

Audacious move by the PM. This one move will shatter many menaces! This will have effect on black money, currency counterfeit, political funding, unaccounted cash pile, election funding & vote buying!

 

[Bheemsen]

Every one here is forgeting fake currecy racket run by our peaceful neighbours via bangladesh and nepal route this one move has crushed all existing fake currency rackets and hoarded black money for coming elections by corrupt parties .

 

[ranadd]

^^

Please. Can you post pics in English rather than your regional language? No clue what you going on about.

 

[Bheemsen]

^^

Please. Can you post pics in English rather than your regional language? No clue what you going on about.

By currencyban Modi slam Pakistan too as ISI has been raking annual profit of around Rs 500 crore by circulating counterfeit notes in India

 

[Imad.Khan]

I think its an excellent move, but it would even be better if they hadn't replaced it with the bigger rs2000 note. If there are no paper money people will be forced to do electronic transaction, which is impossible to hide. Here in Australia the largest currency note is $100 note and they are also in limited numbers, majority notes used are $50 notes. So people have to use either their credit/debit cards, bank cheques or online banking for bigger transactions . So its almost impossible to hide your income or wealth from the the tax office.

 

[ranadd]

Ah. But they will be back with the new 500 and 2000 INR notes. No doubt.

 

[Bheemsen]

Ah. But they will be back with the new 500 and 2000 INR notes. No doubt.

Nop new notes are nearly impossible to counterfit and even if they to establish this network and fake currency for these new notes will take a decade as it took for them for current notes
another image to explain you what this move has acheived apart from black money stop