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Old 11th November 2016, 13:33   #406
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by SDP View Post
But, has enough been done in terms of planning and execution. My answer is ..yes.
+1. This was executed quite well with one after the other strategy and policy decision being taken every few months. Its a huge country and given the security of cash Govt could not have just sent new notes to ATM without informing first.

People of our country need to grow some back bone and stop whining whenever going gets a bit tough.
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Old 11th November 2016, 13:33   #407
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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I went to the ICICI branch here and they've lowered their shutter citing systems being down. The nearby SBI branch was crowded and it was suffocating inside with the AC not working! I will go there around 4 PM after winding up the work. I've got to withdraw some money some way.

Just a doubt. Will the tolls accept the old 500 Rs notes when they resume working? I doubt they will issue change for the 2000 Rs note.
No, AFAIK, the tolls will not accept old 500Rs note. I have a gut feel, the toll free scenario might be extended till over the weekend?
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Old 11th November 2016, 13:45   #408
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

At least people in cities and those who have good internet access should refrain from visiting ATMs and/or Banks to withdraw cash. They should explore other avenues of payments. I, for example, have no cash at home. In fact, we had a few Rs.100 notes at home which we gave to our maid so that she can tide over this situation. We also explained to our maid on how to exchange her present Rs.500/1000 cash.

For the last three days, we ordered daily necessities through BigBasket. Needed a few medicines which our local chemist was happy to give on credit. For local travel Uber has been very handy and PayTM takes care of the payment.
I don't intend to go and withdraw cash anytime soon given that I have access to these services.

I think, unless absolutely necessary, don't withdraw cash. Let those who really deserve get the chance to withdraw money. Please understand and help our lesser privileged brethren.
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Old 11th November 2016, 13:45   #409
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

Bangloreans tend to panic, last time was during the bandh when everyone began hoarding groceries, bread and other perishables without realizing that the bandh wouldn't last that long.

The biggest impact of this move by the government will be on dirty money and to some extent on black money, I therefore fully support it. All these days I have been making do with whatever change I had, but I had reached zero. So today I finally decided to get some cash.

ATMs I visited in Koramangala are still not working. I went to Axis Bank, stood in line for 20 minutes before I checked with the guy in front who said that he had been waiting for over an hour until I came by. So then I decided to brandish my priority banking status, bypassed the queue and got my ₹10,000 in ₹50 bills which is cumbersome no doubt. Since I don't use cash much, I have no intention to go back for some time.

While sitting in their priority banking lounge awaiting the cash, in front of me was a girl in pyjamas who was also a priority banking customer. She was furiously counting cash in the old ₹500 and ₹1,000 currency and was accompanied by an old woman. On overhearing her conversations, I figured that the cash was to open an account in the name of the old woman who as it turns out was her maid. What disappointed me was that the bankers were colluding despite knowing full well what was going on.

I have therefore warned my household help not to get involved in any dubious activity as they will not only lose their BPL status on their ration card, but they would also have to file income tax returns and may even come under the scrutiny of the IT department. I urge you all to also do the same.
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Old 11th November 2016, 13:58   #410
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by heydj View Post
People of our country need to grow some back bone and stop whining whenever going gets a bit tough.
+1
It is not as much tough a time like a calamity.

Almost everybody I know is facing difficulties in their purchases with limited valid cash. Instead of going with the herd mentality, we should join the queues only in case of urgent requirement of cash. Else, if we can survive for next couple of weeks using plastic cards, we should do that.

There are many stores in my area which usually charge 2-2.5% extra for using credit cards, have came forward and are not asking for any additional payments. Many small time vendors like sabziwala, motherdairywala are helping people pick essential groceries on credit. They are just asking for name, address and phone number of buyers.

Traits like humanity and kindness are still alive, and we are fortunate enough to experience it.
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Old 11th November 2016, 14:05   #411
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by arvind71181 View Post
No, AFAIK, the tolls will not accept old 500Rs note. I have a gut feel, the toll free scenario might be extended till over the weekend?
I'd be really glad if the ministry announces the extension for at least this weekend.

Anyhow, stood in a queue at an ICICI ATM at a branch (Porur) for about 10 minutes and withdrew 2000 Rs. At least I can pay for the tolls now.

Hopefully, things would settle down within the next few days and the rush at the banks and ATMs would subside.

Totally support this move but if the ATMs were proactively filled with 100 Rs notes (after replacing the 500/1000 notes i.e.) on the day the announcement was made, it would have been a bit better than the current situation IMO.
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Old 11th November 2016, 14:22   #412
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

Story this morning in Bangalore - Long lines, traffic snarls near most banks and post offices

We could not get our old notes exchanged despite trying at several places this morning. Finally found a post office that had a smaller line and turned out they are out of cash and were accepting only postal saving account deposits (and most were only depositing the old 500 and 1000 notes!).

Meantime, the photocopier/"Xerox" shops are having a field day - one shop demanded Rs.5 per sheet, that is 5x/500% the regular price of Rs.1

Last edited by NPV : 11th November 2016 at 14:24.
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Old 11th November 2016, 14:23   #413
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

Let me tell you the situation at my home town for the last two days regarding this sudden move by the Govt.

Day One. 9th Wednesday: Banks/ ATM s are closed. People got surprised by this sudden move, heard about some hardships for people with insufficient cash or cash with Rs 500/1000 notes only.

Day Two: 10th Thursday: Banks open, ATMs down. The needy person could go to the bank, withdrew money, but with some difficulties.

Day Three: 11th Friday: Banks open, ATMs down: Situation is absolutely normal, could go to ICICI bank personally, only two persons were there in front of me.

Things are definitely in control now, worry is left only with the persons who are having hoards of illegal money.
I agree that this sudden move has created some confusion and chaos. But it is the duty of the citizen to support the Govt., albeit in some pain.

Last edited by bbhavan : 11th November 2016 at 14:26. Reason: sentence formation
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Old 11th November 2016, 14:57   #414
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

I don't understand why is this move being made out as the best thing that's ever happened to tax paying citizens and the absolute worst to the dishonest ones?

Fake currency issue aside, I still don't see how this will lead to lesser black in circulation.

To quote a simplistic example, house owners will still accept cash only for rent. They will use that cash to buy grocery. The shopkeeper will not declare this cash sale as his earning and not pay any tax. Soon enough, a big bundle is saved up and is used to buy a plot somewhere, in addition to a small amount by cheque. And the cycle goes on.

Nothing really changes, we will soon be back to the same scenario. What am I missing?
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Old 11th November 2016, 15:09   #415
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by vivek95 View Post
Did you draw cash with an HDFC card itself ?? As far I know, at the moment, cash cannot be drawn with a different bank atm card.
Any bank card can be used at any ATM. No restrictions on that.
I managed to withdraw at an ATM near my house. The Q was not too long and ended up standing for around 20 minutes. The 100 notes are of a new series.

A picture of the most wanted denomination at present.
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Government scraps Rs 500 and Rs 1000 notes!-383f778e959b4fd39972f1401e62dfc7.jpg  

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Old 11th November 2016, 15:15   #416
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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This is not the first time such a move happened, it happened 3 times before in independent India, but black money and currency hoarding happened once the dust settled. Now I can clearly and without any doubt say it was done only with the upcoming elections in the view.
As per facts - this is the first move of its type. Never before has 80% of money in circulation been sucked out of the system in such a fashion.
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Old 11th November 2016, 15:16   #417
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by Dry Ice View Post
...

Nothing really changes, we will soon be back to the same scenario. What am I missing?
The fact that the current move was never intended to address 'future' black money. It does address fake currency in circulation at the moment and 'current' black-money stashed in cash form.
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Old 11th November 2016, 15:23   #418
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

Situation in the morning - Armoured vans were parked in front of all SBI branches in my city, and were being filled with boxes with cash (100-rupee notes, I was told). I drove around and noticed that all/most ATM counters, even those of other banks (Bank of Baroda/ICICI/Axis), were functional by 12 noon.

Strangely, there wasn't too much of a crowd/queue at the ATMs for withdrawals. By the time I came home for lunch at 2 PM, most of the ATMs were empty, with 1-2 people loitering around outside.

Inside the banks - mad rush continues, as people are in a hurry to deposit their old notes. Despite the bank staffs' repeated announcements that banks will remain open on Saturday and Sunday and not to pester the tellers with "me first" requests, the crowds are not relenting. Pushing, shoving, even a few fights were seen before the policemen dispersed the parties.

Problem was - people are standing quietly in queues till they reach the counter itself, then 2-3 people swarm around the counter hole together and ask to be served first. That results in a few fists' flying, or exchange of hot words.

The 2000-rupee notes were more in demand over here. Right now, they are distributing more 500-rupee notes over the counters. Fresh supplies are expected to come in via helicopters by today evening.
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Old 11th November 2016, 15:41   #419
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by Dry Ice View Post
I don't understand why is this move being made out as the best thing that's ever happened to tax paying citizens and the absolute worst to the dishonest ones?

Fake currency issue aside, I still don't see how this will lead to lesser black in circulation.

To quote a simplistic example, house owners will still accept cash only for rent. They will use that cash to buy grocery. The shopkeeper will not declare this cash sale as his earning and not pay any tax. Soon enough, a big bundle is saved up and is used to buy a plot somewhere, in addition to a small amount by cheque. And the cycle goes on.

Nothing really changes, we will soon be back to the same scenario. What am I missing?
Quote:
Originally Posted by SDP View Post
The fact that the current move was never intended to address 'future' black money. It does address fake currency in circulation at the moment and 'current' black-money stashed in cash form.

Analogy comes to my mind is that of a poorly written software application with many memory leaks and unintentional uses causing the application to become slow, unresponsive and not meeting the expectations over the time ( say 70 years in our case). Even after making several changes and enhancements in the system (opening bank accounts, stricter controls on tax evaders, simplified tax structure etc.) a reset/server restart was required to cleanse the system of past bad data, junk files etc. I expect this swift step to achieve the desired cleansing effect in the system.

Future generation of black money will depend on efficacy of the controls in place, maturity of citizens ( like demanding receipts, moving to accountable transactions, and so on). If majority of us will support this move and start following better practices (refusing to pay cash for property OR choosing builders that accept cheque payment, asking for receipts for any major transactions, not looking with awe at the income tax evaders....) we will have a cleaner and more robust economy.

I welcome this move - as it has impacted politicians across party lines, builders and industrialists irrespective of their political inclination. It may even cost heavily to the ruling party, but a bold move has been taken to cleanse and give a fresh start to the economy.

Regards
JLS

Last edited by SDP : 11th November 2016 at 17:14. Reason: typos
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Old 11th November 2016, 16:13   #420
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Long post warning. I am not the author, but this makes for an interesting read, and could possibly be true.

Modi's great 2000 Rupee Note Trick - Rahul Aggarwal

(If you find this helpful and interesting, request you to please do share so that doubts of anybody around introduction of Rs. 2000 currency notes are assuaged)

I was contemplating about writing this post since yesterday, was a bit perplexed if I should.

Its about Modi's great Rs. 2000 Note Trick which Modi has played with such brilliant flair that it has stumped everybody (many of his supporters as well).

There is caveat to the below Analysis, which is, you need to read completely to understand it

As I'm writing this post, I know this will be a little long but should be interesting to the inquisitive, so please have patience.

To understand this trick, you must first understand the characteristics of a surgical strike

Yes a surgical strike and its not an impromptu overnight impulsive reaction.

Its main characteristics are:

1. Meticulous Planning
2. Maximum Damage
3. Very Accurate (Damaging the target while the surrounding suffers very little damage)
4. Sudden Shocking Surprise (without giving any time to the target to understand and save itself)
5. Minimum Collateral Damage
6. Conducted after diversionary tactics
7. Blocking any escape routes

In view of the above, demonetizing was precisely a surgical strike on black money . I will not go into more about this phenomenal death blow to Black Money, there are enough articles and analysis. I will focus on something which not many could see in this blitzkrieg. Modi's Great Rs. 2000 Trick.

To understand this trick, I wont take you too far back but 24th September 2016, Location Kozhikode, event BJP National Council's meeting. Modi was soft in speech and made an appeal to
Pakistani people not to get into fight with each other but fight poverty. There were mocking meme's of "Kahan Gayi 56 inch ki chaati". Indian express talked about strategic restraint.

http://indianexpress.com/article/ind...istan-3048718/

3 Days later, *drumroll* surgical strike. Pakistani who thought nothing is gonna happen were caught completely off guard. They even had prepared their launch pads in final stages to launch terrorists in India as they seemed convinced Modi won't do anything.

Fast forward to 6th November, Social media, WhatsApp were filled with messages & images of new Rs. 2000 with NGC, notice carefully, no news about new Rs. 500 but only 2000 .. Why? Why only 2000 .. just coz 500 was already there? but isn't a news about a new 500 note exciting enough to be shared on WhatsApp .. why there was no news about it.

Now I will start unraveling the plan.

First. How easy do you believe is it to leak an image of new currency and that too in good detail without any action, without any reaction from govt.? Isn't it such a huge security blunder? Isn't that a matter of concern?

Govt acted so cool .. not even a news report that why such a thing happened.. Well coz it was done by RBI (Govt.) itself .. They leaked out the Image of Newly minted Rs. 2000 with the rumour of a NGC Nano GPS Chip on it to track it even 130 meters below ground. But why would they do that .. also why not put a news about 500 with a chip as well .. what did the govt. want to achieve with the tactic?

3 Days later, *drumroll* .. Surgical strike Conducted on Black Money (9th Nov) .. No one could have dreamt that 500 and 1000 Rupee Note would be stopped coz 2000 is a new denomination .. an Addition not a replacement. And news about new 500 never came in the market.

You wanted your target which is guilty and nervous (ready) to feel relaxed .. A whiff of new note of existing denomination would have send a chill down the spine so that is why its 2000 and not a Rs. 1000 note. Also with NGC, the culprit feels that okay so govt. is taking measures on new money, nothing is gonna happen to old as its not gonna get replaced (there is no existing 2000 Rupee note to replace.) Its a measure for future notes and my Rs. 500 and Rs. 2000 are safe.

The same is applicable to terrorists and their handlers as well. Who dont want to be tracked with 2000 rupee note, better start stocking 500 and 1000 Rupee notes now.

You may ask why even announce about the 2000 Note then? Recall the characteristics of Surgical Strike, the target knows that 30th September Deadline is over there could be action so it is always better to relax the target and then launch the offensive for maximum accurate damage. (How it would relax has been explained in previous paragraph if that thought crossed your mind).

This was primary objective. Secondary Objective, The culprit is relaxed about new note but aware that this new note with chip wont be easy to hoard (stock) so better remove Rs. 500 and Rs. 1000 notes from market and convert from 100s to 500s and 1000s .. the culprit is in trap.

Tertiary and quite a valid important Objective:

86% of currency in circulation is in denomination of 500 and 1000. The valid white money crunch is going to crush the economy. Introduction of new money would be slow .. you need a high denomination to fill that void (not completely but to some extent). Don't expect too many 2000 rupee notes to be printed, they are just to tackle this emergency situation which govt. did expect to get created.

Now the next question is if its the objective why not leak 2000 image earlier enough for them to stock maximum. Remember, it is secondary objective and longer the time after a relaxing stroke, the more the chance that culprit becomes aware and take evasive measures.

So now .. Who all knew about stopping of existing 500 and 1000 rupee notes? No one except Modi Ji, Arun Jaitley and RBI Gov. I doubt if there is a fourth person who knew about it.

Why not others? How would it matter anyway .. its stopping the existing denomination .. don't need much preparation to remove the existing, what needs planning is introduction of new currency. So phasing out can be done at the drop of the hat and that is what was done without many people being informed about it.

So what about the new Rs. 500 Note? Did the banks know.. Ha Ha .. they did not?

I came across this article in the evening today and it confirmed my .

http://www.ndtv.com/india-news/top-s...ecuted-1623848

"They (Bank Heads) had been called to the RBI in the morning to receive a locked currency chest which they were told contained notes of the new 2,000 rupee denomination. They were under strict instructions not to open the chest or speak about it until later that night, according to the Mint newspaper.

It was when they opened it, as PM Modi was speaking, that they learnt about the new 500 rupee note, the paper added."

The banks were told that they should give more Rs. 100 notes and not Rs. 500 or Rs. 1000

Another line from the article above - "Last week, the RBI had ordered banks to issue more 100 rupee notes but no one seemed to have seen what was coming."

EDIT: RBI had issued a notification for banks to dispense Rs. 100 Notes through ATMs on 2nd November. Thanks to Mohan Kumar for sharing this link (https://rbi.org.in/Scripts/Notificat...d=10674&Mode=0)

What other unintended but obvious objective did the Rs. 2000 Note trick achieve? Machines in Karachi worked overtime in last three days to print 1000 and 500 as Rs. 2000 would not be easy to print with the NGC chip (they thought would be real, the hoax worked), only to waste their resources and go *** after the announcement.

"The Directorate of Revenue Intelligence, Research andAnalysis Wing and other intelligence agencies had exposed Pakistan governmentacquiring ink and paper far in excess of requirement to print Pakistani currency."

http://m.indiatoday.in/story/black-m.../1/806903.html

The Rs. 2000 trick was a diversionary tactic as well as a trick for black money hoarders to hoard in 500 and 1000 currency notes since 2000 with NGC would not be easy to hoard.

Once you assimilate this one little plan in the whole scheme of things that Modi has tried to checkmate Black Money with, you would only say Modi Sir, You beyond awesome !!!

Bonus Analysis: NDTV Ban was never going to happen, it was just to keep the notorious channel busy in its own affairs trying to garner support while Modi slammed their back and roared "Dhappa" (Chuppan Chuppai)
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