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Old 10th November 2016, 21:38   #331
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by FrozeninTime View Post
After all tamsha about black money the corrupt government servants will be protected after all through this loop hole.

http://m.timesofindia.com/india/Govt...w/55356435.cms

As I said earlier the big fish are never caught nor prosecuted. Everything will be normal in few months and people will forget until the next scam.
The cycle repeats itself like stock market.
Ha. Does anyone remember the Lokpal bill that was passed 3 years ago for which there was such a hue & cry for 2 years? No sign of that Lokpal & now we get such new rules protecting corrupt bureaucrats.

This is why this chaotic currency exchange is being seen as something to pull wool over people's eyes that Govt is doing 'something'; while not doing the right thing.
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Old 10th November 2016, 21:43   #332
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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In the process... also getting captured multiple times by CCTV cameras.
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Originally Posted by civic-sense View Post
What do we want to become? A North Korea? Is the yearning for "progress" so strong that we are willing to forgo all our liberties?
If government scrutinizes tax evading and cash hoarding practices - we do not become North Korea - rather we become a better republic.
All mature democracies have good control on crime tracking and hence normal citizens are able to enjoy the fruits of democratic freedom.
Emerging democracies like ours, still have a long way to go towards implementing better crime monitoring and tracking, and hence crooks are able to evade law at their will.

Difference between stricter crime control and a North Korea is that we get to vote every five years and get to elect our government, which in turn functions - according to the representatives we elected and implements controls against crime OR keeps doing scams after scams (like previous government)

Last edited by JLS : 10th November 2016 at 21:45.
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Old 10th November 2016, 21:48   #333
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

Card machines not working at a few places. Guess the server load is too much.

Would recommend everyone to stock up on essentials.
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Old 10th November 2016, 22:00   #334
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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A simplistic example but one which clearly shows that a honest man's money is being taken to support a dishonest man.
Thanks for the reply. I understand what you are saying, but the problem and solution IMO is not that simplistic.

In this particular case, when new notes would be reintroduced wouldn't it be a matter of time till the new notes are hoarded again?

Or even better, having learnt their lesson this time onwards they will never keep cash in such high volume.

This incident reminded of a certain gentleman whose apartment i had rented years back. At 70 plus he was an Ex-Navy and an ex-electrical contractor.

He lived in his bungalow of which I had rented the 2nd floor. He made a unique calculation in which he didnt take deposit from me rather divided the rent in such a manner

where the cheque component would be negligible to warrant tax and the rest as cash (upto 1 lakh) to be paid upfront. Interesting thing was, he wanted the cash in notes of 100.

His explanation was "I dont trust the Govt. one fine day they might demonetise 500 and 1000 bills, I'm an old man where will I rush at the last moment." And this was 2009.

My point is, this is like a one time raid, I don't see this preventing future tax evasion. Please let me know if and what makes you feel otherwise.
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Old 10th November 2016, 22:00   #335
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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So someone hires 10 jobless guy and gets them to visit upto 10 banks everyday for 10 days.
They give in 4000 rupees in the old thousand and five hundred rupee notes.

As proof of identity they use any fake driving license photocopy. Since its for the 4,000 no one is really paying a lot of attention.

Everyday they clear 4,00,000 and in ten days they have cleared 40 Lakhs.

Even if they are paid 50,000 each for someone sitting on a good amount of black money this is a cheaper and cleaner way to get the new 2000 notes.
Someone tried to answer this query on Quora

https://www.quora.com/What-happens-i...umar?srid=XPRO
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Old 10th November 2016, 22:24   #336
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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In this particular case, when new notes would be reintroduced wouldn't it be a matter of time till the new notes are hoarded again?

Or even better, having learnt their lesson this time onwards they will never keep cash in such high volume.
The parallel economy that was built took decades. And it was wiped out in a minute. Just do the math. If a person wants to sell his land worth 1 cr and demands say 50 lacs in cash, where would the buyer find Rs 50 lacs cash? such large bank with drawls would attract attention now.
Black money is generated by under invoicing sales price; selling without bills, inflating purchase invoices ( and getting the inflated amount back in cash), buying goods on paper, bribes, kick backs, and so on. It takes time to build this from scratch, since the black in circulation is now gone.
If the government takes further steps, and i understand from the news that they intend to do; then it is heavy weather for the hoarders. It is in such scenario that we can help. Irrespective of whether the action was the most optimal or not, or whether the timing was apt, or whether the process was correct; we have to agree that the motive was good. Let us support this since there are a bunch of politicians, as well as black cash kings, who along with their henchmen are trying to drum up opinion that this is bad for India.
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Old 10th November 2016, 22:25   #337
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I don't know how effective this is going to be, what I meant is will the government get back the money that was spent for this exercise. I do accept that the fake currency will just disappear and it might take some time to duplicate this. Some not so connected people will loose money and many "ordinary" people who might have got some money out of selling their land. For all others this is just an inconvenience.

New Black money is already in ground
"Currency seized in Thanjavur with new Rs 2000 notes, chief electoral officer says money belongs to Bank of Baroda"

http://indiatoday.intoday.in/story/c.../1/806988.html

By the way, I did not know this.

https://www.quora.com/Did-Dhiru-Bhai...-the-long-term
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Old 10th November 2016, 22:28   #338
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by SDP View Post
Let me refresh your memory.

Here's what you said -



Again, its people like you who got it wrong (or may be didn't bother to understand) and are trying to transact with notes which are no longer valid and trying to blame the vendors for not accepting them.

How about some humility to accept a mistake and move on, rather than giving new twists to the argument and going on and on?
If you think I have my head stuck some place else you are sorely mistaken.
This is what I said.. "I said this yesterday and I will say it again.. Rs.500 and Rs.1000 is worthless is that message that everyone got.The fact that these notes can be exchanged, albeit with some hassle, is not being passed along."

Again, I said ".. is the message that everyone got." And how about you highlight the 2nd part of the sentence, "The fact that these notes can be exchanged, albeit with some hassle, is not being passed along".

Believe me when I say this, I am very aware of that fact that I dont have to wait in line for hours to get Rs.4,000 exchanged. And I am also aware that I have until the end of December to recycle any 500/1000 notes that I may have.

My assumption is that in the last two days you have had little interaction with people that live an all-cash life, the daily wage earning working class.
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Old 10th November 2016, 22:30   #339
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IMPORTANT NOTICE :
Income Tax department has added a new window in their I.T. E-FILING WEBSITE viz " ACCOUNT CASH TRANSACTIONS " , from today morning.....!!!!!
The moment CASH is deposited into your Bank a/c , the amount will immediately reflect in this WINDOW of the I.T. Department. All the Banks Server's have been linked with the CPU of I.T. Department for CASH transactions....!!!!!
Please SHARE this msg....!!!!
Got the above as WhatsApp message. Can someone confirm this ?
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Old 10th November 2016, 22:32   #340
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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New Black money is already in ground
"Currency seized in Thanjavur with new Rs 2000 notes, chief electoral officer says money belongs to Bank of Baroda"
I do not think the report is accurate or you have interpreted it accurately. My take is as follows:
The report says:
quote:
The Election commission today seized a mini van with currency worth Rs 7.5 crore in Thanjavur district of Tamil Nadu. The money seized contained the new Rs 2000 notes, which are to be released on Thursday.
Chief electoral officer of Tamil Nadu Rajesh Lakhoni confirmed that the money was seized and said, "The money belongs to the Bank of Baroda. The vehicle in which it was transported in did not match the vehicle number in the papers and hence they are enquiring about it." But he assured that the money isn't related to the elections.

unquote
See the emphasis provided in the extract by me. It is either a case of theft or most probably, a goof up in the logistic paper work.
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Old 10th November 2016, 22:52   #341
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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The parallel economy that was built took decades. And it was wiped out in a minute.
.
.
.
Let us support this since there are a bunch of politicians, as well as black cash kings, who along with their henchmen are trying to drum up opinion that this is bad for India.
The naivete in the first statement above is hilarious

No step has been taken to switch over a cash based economy to electronic transactions based one that will ensure future transactions remain 'white'.

For the second statement, I present the "black cash king henchmen" who suffered today:

http://www.bbc.com/news/world-asia-india-37921672
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Old 10th November 2016, 22:53   #342
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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The parallel economy that was built took decades. And it was wiped out in a minute. Just do the math. If a person wants to sell his land worth 1 cr and demands say 50 lacs in cash, where would the buyer find Rs 50 lacs cash? such large bank with drawls would attract attention now.
I'm pretty bad at maths, but I cant come up with anything that can counter this point. So selling and buying real-estate would be slow, in what scenario can we expect the prices to come down?

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Originally Posted by earthian View Post
Black money is generated by under invoicing sales price; selling without bills, inflating purchase invoices ( and getting the inflated amount back in cash), buying goods on paper, bribes, kick backs, and so on. It takes time to build this from scratch, since the black in circulation is now gone.
But it would continue right?

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Originally Posted by earthian View Post
If the government takes further steps, and i understand from the news that they intend to do; then it is heavy weather for the hoarders. It is in such scenario that we can help. Irrespective of whether the action was the most optimal or not, or whether the timing was apt, or whether the process was correct; we have to agree that the motive was good. Let us support this since there are a bunch of politicians, as well as black cash kings, who along with their henchmen are trying to drum up opinion that this is bad for India.
I respect your sentiment and I am neither against this move nor think this is "bad". I do not trust politicians and the ruling party too must have plenty of the ones who have stashed money left right and center. I'm finding it difficult to believe the ruling party MPs if not the opposition did not have an inkling of this or are not adversely affected by this or have some assurance from their party. Any person/ party who speaks against this loses moral high-ground so we don't have many people questioning this. This alters the course of events in the states going to polls, as buying votes is a common practice.

I would be less skeptical if the 500 and 2k notes hadn't be reintroduced.
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Old 10th November 2016, 23:04   #343
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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I present the "black cash king henchmen"
We don't have to look far to find them here, do we?😀
On a more serious note, i prefer to trust the motives of the Government, and let us leave it at that.
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Old 10th November 2016, 23:16   #344
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Got the above as WhatsApp message. Can someone confirm this ?
Speaking in general terms - I think it is high time people in our country stop forwarding whatsapp messages in awe, and wait for official press releases from the likes of RBI. Bookmark the RBI website and get info first hand.
A cousin was in awe about the technology genius in RBI who invented a currency note with NGC that can "reflect GPS location to a satellite". Another was worried about all the radio transmission from the currency notes in his pocket. These messages defy the laws of physics, people should stop forwarding hoaxes. Separating factual info from all the noise is a real challenge, especially for those who are not tech savvy.
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Old 10th November 2016, 23:18   #345
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Got the above as WhatsApp message. Can someone confirm this ?
Whatsapp rule: more exclamation marks, the less likely to be true. I think whatsapp should be illegal for kids under 18. Or adults with equivalent mental age.

Of course the tax department has the resources and staff to monitor thousands, if not millions of transactions in real time. Reasonable? Nope.

But I'm sure that the reporting of high-amount deposits has been stepped up, and I'm sure that the number that get more than a glance will increase, at least in the short term. That's possible, and reasonable --- and if it didn't happen, people could just pay in all that cash with impunity anyway.
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