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Old 27th July 2017, 18:22   #2446
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

This move to digital money is benefiting someone. Every transaction has added service charge. For every 100/- spent we have to pay about 2% extra. All kinds of small amounts just add up as cess. Is this factored into inflation? We have to pay extra to spend our own hard earned money, which has already been taxed.
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Old 27th July 2017, 20:18   #2447
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Seems to be based on the over-all plan of only having small denomination notes in the market. Many other nations have already done that. Advantage being cash transactions for large values would become more cumbersome.
Is there not already a law now that cash transactions over Rs 50000 for any deal is illegal? Now for land deals, how this is going to affect is yet to be known. Because , the mode of money paid may have to be mentioned in the land deal document.
When i bought a flat in 2015, with the help of HDFC Loan and some PF money, I was made to write the HDFC Loan cheque No in the Document as well as the cheque numbers of the balance amount paid to the owner from whom i bought the flat. That was in 2015, way before demonetisation! It was in Trivandrum, Kerala
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Old 28th July 2017, 11:08   #2448
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Is there not already a law now that cash transactions over Rs 50000 for any deal is illegal? Now for land deals, how this is going to affect is yet to be known. Because , the mode of money paid may have to be mentioned in the land deal document.
Earlier the practice was to only show the fair value prescribed the government on the registration documents. The stamp duty etc. was also determined based on this. All other payments were either using cash, or through unrecorded transactions (like for example: builder's wive's account). In such cases it was tough to prove that cash transactions for a large amount was actually done.

I could not find an explicit law which forbids cash transactions above Rs.50,000. The earlier law said that PAN# should be recorded, and there was a plan to also tag such transactions to Aadhar. But in a "pure cash" transaction, all this would be impossible to do.

So the long term plan would be to have only small denomination notes available aplenty, and this also makes huge cash payments a difficult thing to achieve. This would also force every one to use digital or bank channels to affect payments.
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Old 28th July 2017, 19:13   #2449
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by sachinpk View Post

I could not find an explicit law which forbids cash transactions above Rs.50,000. The earlier law said that PAN# should be recorded, and there was a plan to also tag such transactions to Aadhar. But in a "pure cash" transaction, all this would be impossible to do.

.
Not with respect to real estate alone, but I saw in newspapers, any cash transaction above Rs 50000 is illegal! Can anybody please clarify? Or was that only a proposal mooted by Govt, yet to be made into a law?
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Old 29th July 2017, 08:47   #2450
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

I expect this to be true. My brother-in-law (a retired HC-CJ) tells me that the law has been made so stringent that today it is not really on to Introduce anybody to a bank or sign guarantor to any loan. With the current strictness, banks are very keen to go after the introducer or guarantor.
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Old 13th August 2017, 06:50   #2451
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

RBIs Dividend Halved.
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The RBI (Reserve Bank of India) transferred just Rs 30,659 crore as dividend to the government for the year ended June 2017, less than half the previous year's levels. Last year, it transferred Rs 65,876 crore to the government. This year, the expectation was Rs 74,901 crore will flow into the government exchequer, partly due to the demonetisation gains...
IMO the trauma that manufacturers & markets went through during the 50 days last year (and it's after effects), have gone in vain.

If experts say it'll have a long term effect, then I'll reiterate an old saying in economics, "In the long term, we're all dead".

For now, it's been bad for the public from all sides. Why ? Because the black money generators didn't lose authority. And they're back with a vengeance.

The policies that this Govt has adopted, whether it is demonitisation, income tax laws, ad hoc cash usage & banking rules, complex & high tax as per GST, additional local taxes, weak RERA law, crazy penal fines in motor vehicles act, additional cess for SUVs etc has brought ALOT of uncertainty.

All this apart from the other problems our country faces with respect to armed rebellion of the marginalised sections in places like J&K, Chattisgarh & Assam. Then there's the notorious saffron politics.

Honestly, in this past 2 years of global economic slowdown, India was barely doing sufficiently fine, there was no need to whip the injured elephant. Once a revered premier institution, the RBI has now a stain in its reputation.

There were plenty reasons many VCs had gone short on India, we just gave them a solid one.

What a waste!

Last edited by GrammarNazi : 13th August 2017 at 06:56.
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Old 13th August 2017, 07:12   #2452
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Things will get a lot worse before they - hopefully - get better.

Before that happens, more people will have to stop being fooled all the time.
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Old 24th August 2017, 18:50   #2453
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

RBI has introduced new Rs. 200 and Rs. 50 notes. Rs. 2000 will slowly be withdrawn from the market. I am sure this will reduce bulk cash transactions and check corruption to a large extent. For daily transactions the 500, 200, 100, 50, 20 and 10 denominations is more than sufficient.
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Old 24th August 2017, 18:55   #2454
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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RBI has introduced new Rs. 200 and Rs. 50 notes. Rs. 2000 will slowly be withdrawn from the market. I am sure this will reduce bulk cash transactions and check corruption to a large extent. For daily transactions the 500, 200, 100, 50, 20 and 10 denominations is more than sufficient.
They shouldn't have introduced the Rs.2000 currency in the first place. The entire purpose of withdrawing the Rs.1000 was defeated by this single foolish move.
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Old 25th August 2017, 17:01   #2455
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They shouldn't have introduced the Rs.2000 currency in the first place. The entire purpose of withdrawing the Rs.1000 was defeated by this single foolish move.
They too had their own stash of old 1000 rs notes to fix. Idea was to show the people that govt is doing something. Everything this govt have done have failed miserable so far in my books at least.

Demonetization - Everything about results is shrouded in secrecy with no numbers coming out. Govt flip flops only added to the feeling that it was a exercise in futility with no clear goal.

GST - It have ended up creating more profits for companies. I am yet to see any company passing on lower tax to end user like us. On top of it, Mr FM is busy patting his back in media. Only thing they have done well is media management.

I am very keen to see the results of 2019 elections. They still have 2 years to go for same and opportunity to do something good is very limited now.

Last edited by .sushilkumar : 25th August 2017 at 17:03.
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Old 30th August 2017, 18:28   #2456
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

99 % old notes returned to RBI: Urijit Patel. In other words, demonetisation seems like a massive disaster.

Cheers,
Jay
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Old 30th August 2017, 18:54   #2457
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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99 % old notes returned to RBI: Urijit Patel. In other words, demonetisation seems like a massive disaster.

Cheers,
Jay
Even i was wondering the same?!

And from my personal experience of selling the Thar, i had atleast 3 folks calling me and offering the quoted price, i.e if i am ready to accept cash! Declined all of them and after a month found a person who is ready to transact legally.
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Old 30th August 2017, 19:28   #2458
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

No one seems to know where the old notes have gone nor where the new ones are going. Phrases like Dig the mountain, Catch a mouse and Much Ado About Nothing are gaining relevance by the day.

Meanwhile, received (on WhatsApp) this hard hitting commentary on the entire demonetization saga.

IF HE COULD, HE WOULD!

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Picture Credit: Unknown

Last edited by dailydriver : 30th August 2017 at 19:30.
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Old 30th August 2017, 19:38   #2459
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

Shocking data !

Why was demonetization done in the first place is something that bewilders many I believe. The unfortunate loss of lives and inconvenience, all has gone to a failed effort.

How much black money was eradicated from the system is anybody's guess.

Safely we can assume that demonetization didn't get intended results.
Where are we headed ? And we did receive the gift of transaction charges.

Hope we have an official statement regarding the same by RBI/government.

Last edited by aaggoswami : 30th August 2017 at 19:39.
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Old 30th August 2017, 19:52   #2460
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by JayPrashanth View Post
99 % old notes returned to RBI: Urijit Patel. In other words, demonetisation seems like a massive disaster.

Cheers,
Jay
Well, not entirely.

The amounts deposited in Bank Accounts are now getting scrutinized.
In cases where amounts deposited are not matching with previous history or tax returns data, they will be served with notices etc.
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