IndoCarib
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India’s PM, Narendra Modi, surprised and even shocked many when he announced that Rs 500 and 1,000 notes would no longer be legal currency. This is some 86% of the entire cash money supply of the country. There would be a pause and obviously no little chaos as replacement notes of different design were made available. The aim was and is to clamp down on India’s severe problem with “black money.” This is not just about transactions taking place off the books and therefore untaxed–there are also serious concerns about terrorist financing and forgery of the bank notes. By sweeping the current denominations out of use and imposing restrictions on how they may be exchanged for new bills the aim is to clean up this area of the economy.
And so far at least it looks as if it is working. The Ministry of Finance has announced that deposits at the banks have soared:
Indian banks received 2 trillion rupees ($29.8 billion) of cash after the government’s Nov. 8 surprise move to abolish high-denomination banknotes, as customers queued for hours to deposit or exchange the old bills and ATMs ran dry.
With the banned bills accounting for 86 percent of money out of circulation, there is tremendous pressure on the nation’s banking system to replenish the cash. More than 70 million transactions were recorded through midday Nov. 12, the Ministry of Finance said in a statement late Saturday.
That announcement is here:
A total of over 7 crore transactions have taken place from 9th November
upto mid-day of 12th November (i.e. in the last two and a half days) for deposit,
exchange of old notes and withdrawal from ATM and over the counter. Old notes
of Rs.500 and 1000 denominations amounting to about Rs. 2 lakh crores have been
deposited to banks.
Just to emphasise that this wasn’t only about getting money into the banking, and thus tax, net, the Ministry has another press release:
One of the primary objectives of cancellation of legal tender character of
old series of Rs.500/- and Rs.1000/- notes was to check the menace of
terror financing through counterfeit currency notes. The receipt of
counterfeits/fake currency notes in Banks and Post Offices are, therefore,
being monitored very closely.
http://www.forbes.com/sites/timwors...illion-in-rs-deposited-in-banks/#1f2acdff78a5
@The_Showstopper
@Joe Shearer
@ashok321
And so far at least it looks as if it is working. The Ministry of Finance has announced that deposits at the banks have soared:
Indian banks received 2 trillion rupees ($29.8 billion) of cash after the government’s Nov. 8 surprise move to abolish high-denomination banknotes, as customers queued for hours to deposit or exchange the old bills and ATMs ran dry.
With the banned bills accounting for 86 percent of money out of circulation, there is tremendous pressure on the nation’s banking system to replenish the cash. More than 70 million transactions were recorded through midday Nov. 12, the Ministry of Finance said in a statement late Saturday.
That announcement is here:
A total of over 7 crore transactions have taken place from 9th November
upto mid-day of 12th November (i.e. in the last two and a half days) for deposit,
exchange of old notes and withdrawal from ATM and over the counter. Old notes
of Rs.500 and 1000 denominations amounting to about Rs. 2 lakh crores have been
deposited to banks.
Just to emphasise that this wasn’t only about getting money into the banking, and thus tax, net, the Ministry has another press release:
One of the primary objectives of cancellation of legal tender character of
old series of Rs.500/- and Rs.1000/- notes was to check the menace of
terror financing through counterfeit currency notes. The receipt of
counterfeits/fake currency notes in Banks and Post Offices are, therefore,
being monitored very closely.
http://www.forbes.com/sites/timwors...illion-in-rs-deposited-in-banks/#1f2acdff78a5
@The_Showstopper
@Joe Shearer
@ashok321
