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Old 25th January 2017, 15:39   #2251
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by sgiitk View Post
@vinit.merchant; I must say I am surprise at the discovery of a packet with old notes. My wife and I searched our stashes and came up with all the cash, adding up to about ₹213,000. We went and deposited all of it
We did that exercise too. Found 68k in a week long search in old notes which we deposited. Seems we were not thorough enough.
No one likes to loose money. And even though it is not that big an amount, it was still my money and I am a tax paying citizen (salaried) with nothing to hide.
It pinches.

PS: Searching missus's cupboard is a different mountain to climb.
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Old 25th January 2017, 15:56   #2252
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Something I had hoped not to happen, but feared it might, since the probability was quite high.
My wife just called me saying she found an envelope somewhere from the cupboard, with old 500 notes totaling 4000.

The last news I read on it is that only NRI's/people outside India during Nov/Dec will be allowed to exchange these from RBI branches, that too limited to just 5 locations across India.

Was there any update to this? Can I still get these exchanged even though I was very much in India and I am not an NRI?
RBI will not accept the notes from a resident Indian under any circumstances.

Link

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93-year-old Shivcharan Singh Maran, died of old age on Dec 26, 2016. The family was cleaning his room after last rites when they found Rs 50,000 in Rs 500 old notes hidden in the cupboard. The family claimed that Shivcharan had lost memory before he died so perhaps he forgot to tell anyone about the cash he had with him. Mastan after recovering the cash reached the local RBI branch in the city with the old notes and requested officers posted there for exchanging them with the new currency. The officers, however referring to the guidelines issued by their headquarters, declined accepting those notes
You should keep those notes safe. It is already rare to find one and is going to be a collector's item in a decade. The 1000 rupee note withdrawn in 1978 is worth 10 times as much now.
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Old 25th January 2017, 15:59   #2253
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by vinit.merchant View Post
Something I had hoped not to happen, but feared it might, since the probability was quite high.
My wife just called me saying she found an envelope somewhere from the cupboard, with old 500 notes totaling 4000.

The last news I read on it is that only NRI's/people outside India during Nov/Dec will be allowed to exchange these from RBI branches, that too limited to just 5 locations across India.

Was there any update to this? Can I still get these exchanged even though I was very much in India and I am not an NRI?
My parents have similar problem, but with a twist. They are not in the country for last three months and have some cash in 500s/1000s with them. Ok, they can declare that at the airport and then go and submit it at RBI when they come back next month but my mother also has some cash in these godforsaken denominations locked at home from her saving habit of yesteryears. Now this is a tidy sum, around 70 or 80k. So the question that's bugging them is, what will happen to this money!

Anybody knows what their options are in this case?
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Old 25th January 2017, 16:05   #2254
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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You should keep those notes safe. It is already rare to find one and is going to be a collector's item in a decade. The 1000 rupee note withdrawn in 1978 is worth 10 times as much now.
If you're sure you don't have any more 500rs notes. 4K means you are 2 notes away from jail
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Old 25th January 2017, 16:17   #2255
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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If you're sure you don't have any more 500rs notes. 4K means you are 2 notes away from jail
No jail term for holding old currency, only a fine. Also it is 10 notes per person. So, if you have 4k in a house with 2 members, it is only 4 notes per person.
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Old 25th January 2017, 16:29   #2256
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

Q3 results are pouring in. Most analysts are now saying that the effect of demonetization on the economy is negligible and the results are above average. Sensex has risen considerably as a result. Now the people who had written obituary of Indian economy is no where to be seen. This is what happens if you look at economics wearing political glasses.

You can see similar thing happening in US. US has exited TPP and experts are crying hoarse. They are saying China will replace US as the next economic super power. People with common sense can understand China is no where near US as a free market or an innovation power house. If you replace US with China in a trade deal like TPP, every country will ultimately turn an importer from China. This can wreck their markets and jobs. But pure bias for a leader is forcing these media houses and experts to bad mouth actions which are good for your own country.

Last edited by poloman : 25th January 2017 at 16:31.
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Old 25th January 2017, 16:45   #2257
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

With reference to the discussion in the past few pages, it is surprising that demonetization is still being linked to controlling black money/ or controlling corruption.
Through various RTIs post demonitization, we already know that RBI was ill prepared to use this event to its own advantage (that is if it ever wanted to) against the proliferation of black economy.

Please understand, demonetization was absolutely necessary 1) to suck out the fake currencies in circulation (please read the master circular issued immediately after PMs announcement) 2) to reset the banking/ monetary system.

Black money/corruption ---these things were baits. They were offered to the public so that there is no mass resentment against this move as it was going to disrupt normal flow of life. You can't explain the common man in technical terms why demonitization was necessary. But you sure can swing their opinion your way by linking this move to controlling terrorism and punish the tax evading rich. The masses can easily form these linkages in their heads. (Btw, I feel this move is going to bring huge political gains)

Having said that, it is not entirely untrue that demonitization could reduce terrorism and tax evasion. Afterall, stone pelting went away in the valley. But it wasn't that well planned a move, that could kill many birds with a single stone. (I doubt if the government leadership even wanted to kill all those birds!)

Finally, regarding practical moves to control corruption? -- there was an RTI filed not so long ago on the increase in agricultural income in India in the last 10 years. The growth levels reported were astounding (don't remember the figures). This data is with the government. Get after these guys whose agricultural income shot through the roof in just a matter of 10 years. That is as close to a low hanging fruit the government can get if they are earnest in their chase against black money hoarders.

In conclusion, I'd say - demonitization was necessary. It is a huge positive for the economy in general. But it shouldn't be linked to preventing corruption/black money (though it could have been).

Last edited by rrsteer : 25th January 2017 at 16:54.
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Old 25th January 2017, 16:56   #2258
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by poloman View Post
Q3 results are pouring in. Most analysts are now saying that the effect of demonetization on the economy is negligible and the results are above average. Sensex has risen considerably as a result. Now the people who had written obituary of Indian economy is no where to be seen. This is what happens if you look at economics wearing political glasses.
.
Analysts and experts also know that mutual funds flush with cash in tax saving season have a liquidity problem and that means nearly every stock is overvalued. Investing in the sensex wasn't done with hard cash, there's absolutely no connection. . The quarter includes the festival season and year end dip, just like always.
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Old 25th January 2017, 16:59   #2259
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Please understand, demonetization was absolutely necessary 1) to suck out the fake currencies in circulation (please read the master circular issued immediately after PMs announcement) 2) to reset the banking/ monetary system.

But it shouldn't be linked to preventing corruption/black money (though it could have been).
- Fake currencies could have been managed equally well by a phased demonetisation rather than a sudden, all-out demonetisation. Anyway, fake currencies are going to crop up for this new notes too.

- Banking system could have been reformed through various other more efficacious ways, without hurting the common man. I dont think there will be any long term positive effects on the banking system due to demonetisation alone. They could have pushed for cashless economy even without demonetisation.

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Originally Posted by rrsteer View Post
Black money/corruption ---these things were baits. They were offered to the public so that there is no mass resentment against this move as it was going to disrupt normal flow of life. You can't explain the common man in technical terms why demonitization was necessary. But you sure can swing their opinion your way by linking this move to controlling terrorism and punish the tax evading rich.
I dont know if that is how a democratic welfare state works.

Anyway, I dont believe that is true. The govt truly believed it could tackle black money through demonetisation.

Last edited by deerhunter : 25th January 2017 at 17:02.
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Old 25th January 2017, 17:06   #2260
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Analysts and experts also know that mutual funds flush with cash in tax saving season have a liquidity problem and that means nearly every stock is overvalued. Investing in the sensex wasn't done with hard cash, there's absolutely no connection. . The quarter includes the festival season and year end dip, just like always.
Sorry, did not get your point. Are you saying people just blindly put money in market just because it is tax season Is it n't the broadest indicator of the health of the economy? If there a big doom coming who will put money in the stocks?
If this quarter is not affected when is the so called contraction of economy going to happen as predicted even by a economist ex PM?
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Old 25th January 2017, 17:44   #2261
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Sorry, did not get your point. Are you saying people just blindly put money in market just because it is tax season Is it n't the broadest indicator of the health of the economy? If there a big doom coming who will put money in the stocks?
If this quarter is not affected when is the so called contraction of economy going to happen as predicted even by a economist ex PM?
The broadest indicator of economic performance is actual growth in sales of houses and automobiles, thanks to legislation, mutual funds get to pick your pocket in the guise of saving you tax. People aren't putting money in stocks, the funds are just buying up what's available. If there is a boom happening, the past quarter's results should have been better than average.
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Old 25th January 2017, 18:26   #2262
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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The broadest indicator of economic performance is actual growth in sales of houses and automobiles, thanks to legislation, mutual funds get to pick your pocket in the guise of saving you tax. People aren't putting money in stocks, the funds are just buying up what's available. If there is a boom happening, the past quarter's results should have been better than average.
Don't want to argue, but you have some wrong conception of capital markets in your mind. Market indices are much broader than automotive numbers or sale of houses. This includes automotive stocks and real estate companies and will reflect the performance of these sectors. No one is talking about a boom here. We are talking about the predicted doom due to demonetization. Market is rising not only due to MFs putting in money, There is also heavy FII inflow which shows confidence in the economy.
FII/FPI trading activity on NSE,BSE and MSEI in Capital Market Segment(In Rs. Crores)
Category Date Buy Value Sell Value Net Value
FII/FPI 25-Jan-2017 8874.28 7495.47 1378.81
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Old 25th January 2017, 18:45   #2263
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

My uncle and aunt who are in town and Green card holders had around 30k in cash which they weren't allowed to deposit. What a waste
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Old 26th January 2017, 14:19   #2264
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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My uncle and aunt who are in town and Green card holders had around 30k in cash which they weren't allowed to deposit. What a waste
Sad that they could not deposit an amount of about $450! You could have helped out by using your account to deposit and change the amount. Remember ₹24,000 a week per account is permitted. Maybe if they were in a desperate hurry you could have used two accounts.

Last edited by Samurai : 26th January 2017 at 14:27. Reason: 450, not 45
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Old 26th January 2017, 14:54   #2265
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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You could have helped out by using your account to deposit and change the amount.
Isn't this illegal?
We were strictly warned to not deposit others old notes in our accounts.
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