Go Back   Team-BHP > Around the Corner > Shifting gears


Reply
 
Thread Tools Search this Thread
Old 22nd November 2016, 21:31   #1186
BHPian
 
VKumar's Avatar
 
Join Date: Nov 2016
Location: NCR
Posts: 199
Thanked: 842 Times
Default Re: Government scraps Rs 500 and Rs 1000 notes!

So far, banks have been able to replace just 10% of the currency
http://epaperbeta.timesofindia.com/A...22112016001024

Farmers finally got a sigh of relief as they can now pay with 500 and 1000 rupees notes for seeds and manure etc.

Quote:
Originally Posted by Sawyer View Post
There are a lot of rumours swirling around BTT: that it will replace IT is one.
BTT IMO is the most impractical thought to have ever come out of any think tank. Bank transactions can never be a parameter to determine the income of a person. There is a probability of credits, helping relatives with cash etc; now what's the sense in taxing all this?

Last edited by VKumar : 22nd November 2016 at 21:33.
VKumar is offline   Reply With Quote
Old 22nd November 2016, 22:00   #1187
Senior - BHPian
 
Join Date: Dec 2006
Location: Bangalore
Posts: 1,226
Thanked: 408 Times
Default Re: Government scraps Rs 500 and Rs 1000 notes!

Quote:
Originally Posted by ashokrajagopal View Post
My questions are still not answered, but may be its me.
Maybe some of the questions you have are answered here by the authors of the proposal
http://www.arthakranti.org/faqs

Theres lot of information there if you'd be inclined. Its certainly a very compelling proposal with lots of merits (and there certainly are some demerits as well, topmost being, nobody has tried it ever!)
joslicx is offline   Reply With Quote
Old 22nd November 2016, 22:42   #1188
BHPian
 
Join Date: Aug 2009
Location: Bangalore
Posts: 105
Thanked: 30 Times
Default Re: Government scraps Rs 500 and Rs 1000 notes!

Quote:
Originally Posted by joslicx View Post
Maybe some of the questions you have are answered here by the authors of the proposal
http://www.arthakranti.org/faqs

Theres lot of information there if you'd be inclined. Its certainly a very compelling proposal with lots of merits (and there certainly are some demerits as well, topmost being, nobody has tried it ever!)
I do not know of any system that does not have a set of merits and demerits. Its always a cost vs benefits study. While not trying that out certainly is demerit number one, there are other demerits too. Capital holding and renting is something that an individual or a corporation owes to the society purely in terms of their control of resources. This is particularly important in cases of common resources like ports, large pieces of land etc. When you hold that much share of the economy due to whatever reason, you are bound to pay a sum to the society. Cases like property tax are examples. To me it simply looks like a hypothesis expanded based on data that is invalid when it is manifested in itself. Things like X transactions as of now, this would rake in X money is not really how a study is done.
Because the "as of now" is very important. There were near zero corporate taxes ( with no BTT) imposed in many countries and many industries; while it worked for some cases, it did not work for some cases. I think the whole proposal is based on the assumption that since its 3%, nobody would bother to cheat, which is not easily digestible.

From my perspective all it would do is free up some of the large chunks of taxes paid by large entities for example like holding high volume of property etc, while bringing down the revenue. I am also not able to digest the fact that we see bureaucracy and politicians as the "others" who will hold this back. Bureaucracy is not your enemy, bureaucracy is "you". So are politicians. Its a democracy, we are all collectively responsible.
ashokrajagopal is offline   Reply With Quote
Old 22nd November 2016, 22:44   #1189
BHPian
 
Join Date: Jul 2008
Location: Bangalore
Posts: 551
Thanked: 1,222 Times
Default Re: Government scraps Rs 500 and Rs 1000 notes!

Quote:
Originally Posted by Samurai View Post
Not the case in Karnataka. I have stood in queue 3 times, never more than 20 minutes. Got money every time.
May be situation is better in pockets of Karnataka, but at least around where I stay in Bangalore, things are not very different. Any ATM around still attracts a line of 30-40 people (though reduced from last week).

Last week, I had money in the bank, but I could not withdraw it or use it. Now, I have money in hand, but I still cannot use it. That's the only change. The gap between 2000Rs and 100Rs notes is way too huge for the former to gain any acceptance in current scenario.

I managed to withdraw 20K from my savings account via a cheque (was lucky that the cash vehicle arrived minutes before I got there), primarily to pay monthly salaries to maids/cooks/helpers, but I seriously feel for them, what will they do with the new 2000Rs notes.

I am still to find a single shop that will accept these notes (unless of course you shop for 2K) and return change. Sad but true. This is like saying that the file (in the Govt Office) has moved from one table to another, but it really doesn't mean much.

Guess, still need to wait for a couple of weeks.
sachinayak is offline   Reply With Quote
Old 22nd November 2016, 23:35   #1190
Senior - BHPian
 
GrammarNazi's Avatar
 
Join Date: Apr 2013
Location: Bangalore
Posts: 1,015
Thanked: 1,602 Times
Default Re: Government scraps Rs 500 and Rs 1000 notes!

Marriages stalling, people dying at hospitals, people dying in queues! Terribly sad to see people suffer!

Heartbreaking to see people indifferent to the problems of rest of the country. Just because YOU get your money or stuff easily, doesn't mean others do too.

Most financially relevant casualty for the country is that of RBIs legendary reputation. No wonder Raghuram Rajan had opposed demonitisation.

I'd recommend people watch regional news channels rather than the national ones, maybe that'd help gain better perspective of the situation.

It really is like an artificially created calamity. Worst causalities are those literally dead, those dependent on daily livelihood, small businesses and common people due for marriage.

Should we choose to be indifferent to the people's situations ?

If it was mainly about taxation, there could've been better ways.

I'm apolitical, but I must admit when Arun Jaitley said there was "no better way", I hoped he was reminded that he was not an elected representative, but only appointed.

Last edited by GrammarNazi : 22nd November 2016 at 23:43.
GrammarNazi is online now   Reply With Quote
Old 23rd November 2016, 00:06   #1191
BHPian
 
diyguy's Avatar
 
Join Date: Jun 2009
Location: Chennai
Posts: 249
Thanked: 111 Times
Default

Quote:
Originally Posted by GrammarNazi View Post
It really is like an artificially created calamity.
We in Chennai were discussing just today that last year we were battling a natural calamity and this year a man made one.
I was deeply disturbed by a whatsapp video of a police lathicharge outside a bank where a cop is indiscriminately hitting people and one of the folks receiving his blows was an elderly man in his 70s or so.
diyguy is online now   Reply With Quote
Old 23rd November 2016, 00:30   #1192
Senior - BHPian
 
maddy42's Avatar
 
Join Date: Aug 2007
Location: Phoenix, Coorg
Posts: 1,828
Thanked: 450 Times
Infractions: 0/1 (5)
Default Re: Government scraps Rs 500 and Rs 1000 notes!

This 20k limit on withdrawals is fine for now but has to be increased. The reason i am giving is the trouble being faced by farmers in a rural setting.

1 bank account with limit of 20k withdrawals in a week.
20 employees getting paid 220 a day. 5 days a week of work. Daily need of 4400 but this cash shortage means we have to hold back paying them on time.

We can manage for some time, but reducing the work force is not possible. So the government better do something before the harvesting season arrives. I do not want seeds or fertilizers now, i just need cash to pay.

The workers are migrants from out of state, with no bank accounts in the local area. Lets see how the situation changes.

Maddy
maddy42 is offline   Reply With Quote
Old 23rd November 2016, 01:00   #1193
Team-BHP Support
 
Samurai's Avatar
 
Join Date: Jan 2005
Location: B'lore-Manipal
Posts: 22,227
Thanked: 13,948 Times
Default

Quote:
Originally Posted by maddy42 View Post
This 20k limit on withdrawals is fine for now but has to be increased. The reason i am giving is the trouble being faced by farmers in a rural setting.

1 bank account with limit of 20k withdrawals in a week.
20 employees getting paid 220 a day. 5 days a week of work. Daily need of 4400 but this cash shortage means we have to hold back paying them on time.
The current account limit is 50K. The 24K limit is for savings account only.

Quote:
Originally Posted by sachinayak View Post
May be situation is better in pockets of Karnataka, but at least around where I stay in Bangalore, things are not very different.
I am in Bangalore since 10 days. I was talking about my experience in Bangalore.

Last edited by Samurai : 23rd November 2016 at 01:02.
Samurai is offline   Reply With Quote
Old 23rd November 2016, 07:57   #1194
Senior - BHPian
 
Join Date: Jul 2009
Location: Pune
Posts: 2,424
Thanked: 1,118 Times
Default Re: Government scraps Rs 500 and Rs 1000 notes!

Quote:
Originally Posted by ashokrajagopal View Post
Bureaucracy is not your enemy, bureaucracy is "you". So are politicians. Its a democracy, we are all collectively responsible.
I don't agree with the first, not being a bureaucrat, but I fully agree with the second two. One could argue for the first that we create the bureaucrats we have because we elect the kind of politicians that need to be in bed with the kind of bureaucrats we have; with that argument, I agree as well. Singapore has bureaucrats, so does Japan. Nothing intrinsically wrong with the species.

I also think it no longer helps to just vote. All we are able to do is exchange one for the other. The greater evil of the day gets the sack, the lesser evil comes in, until the cycle turns. If change has to happen faster, the educated "we" have to stand for public office. And not at the highest levels like Parliament, but at the local ward offices in cities, and work our way upwards, learning how governance works. Unless we are ourselves willing to be public servants from the ground up, the slate of candidates for public office will only improve at the rate of the lowest common denominator. Like BTT, another "not gonna happen except that way". Because we aren't public service minded.

On the BTT: it amuses me how when I dismissed it with three short words, I was scoffed at early on this thread for not seeing how brilliant the scheme is. Now, when I am giving the reasons why I think it is a beautiful but naive scheme, and also why it still will not work, holes are shot in both sets of arguments.

Moving on, with a small detour:

A long time ago, after some reasonable success in a career in corporate finance and tax, I got bored of this non value adding activity. I was lucky to be able to make a lateral move that allowed me to be actively engaged in Indian operations of a machine tool manufacturer, on the shop floor. The US parent's flavour of the month fix for all its global problems was Lean Manufacturing, and with a lot of exposure to the flavour of the month approaches, I was very cynical at first. But participation was not an option, and we had a Japanese lean manufacturing sensei that was brutal in every way, except not physically slapping us around. So, one gritted one's teeth, and paid attention. In time, tube lights in the head started going on; and it happened faster with those able to be the Zen recommended empty glass. And one saw with crystal clarity that what is being taught are life lessons, applicable everywhere. Now all this is justifiably a thread by itself, and I will end this detour here and come back with a bang to the topic of the thread, if you care to think about the next paragraphs.

One important lesson that I learnt, after a lot of hammering to break down my stubborn Indian argumentativeness was:

Aim and shoot. No shoot and aim. Over and over, this was hammered in. What he was trying to get into our thick heads was: Any fool can shoot and aim, and claim a master archer's 10/10, and complete victory every time. All he has to do is run to where ever the arrow has landed and draw a perfect circle around it!!!

Which is what the US company soon did; they were no Toyota ready to do the same thing, but better in each iteration, for 50 years.

I see similar things happening with this too. Shoot, aim, and claim 10/10. Every shot as one from Arjun's bow, the great Gandiva.

Last edited by Sawyer : 23rd November 2016 at 08:08.
Sawyer is offline   Reply With Quote
Old 23rd November 2016, 08:52   #1195
Senior - BHPian
 
Join Date: Jul 2010
Location: Bangalore
Posts: 1,850
Thanked: 3,146 Times
Default Re: Government scraps Rs 500 and Rs 1000 notes!

I live in one part of Bangalore, work in another and have colleagues all over the place, and there's a wide variance within the city.

Most ATMs where I live (including some attached to PSU bank branches) haven't seen a refill for days, while the ones at my workplace have been regularly replenished and recently recalibrated to dispense 2000 rupee notes. The lines used to snake outside the office building earlier, there are hardly any takers now. That isn't normalcy returning, that's the available currency being useless for practical transactions.

Across the city, some colleagues have managed to get cash in small denominations easily from ATMs, while others are struggling to get anything even from bank branches.

Going by RBI's data that only a small fraction of withdrawn currency has been replaced in circulation, I wouldn't be quick to pass judgment one way or another based on a small sample size anywhere. Some pockets of my city (ergo the country) are probably better serviced than others, but that doesn't necessitate or validate a broad generalisation.

It's akin to saying world hunger doesn't exist because I'm well-fed and nobody I know is starving.

Last edited by Chetan_Rao : 23rd November 2016 at 08:54.
Chetan_Rao is offline   Reply With Quote
Old 23rd November 2016, 09:06   #1196
Distinguished - BHPian
 
hemanth.anand's Avatar
 
Join Date: Jan 2010
Location: Bengaluru
Posts: 2,098
Thanked: 5,697 Times
Default Re: Government scraps Rs 500 and Rs 1000 notes!

Finally completed the set of the current valid currency notes in India! ₹2686 in total-All 2015 printed crisp notes
The ₹500 was nowhere to be seen in Bangalore but a colleague got it in an ATM in Delhi. He was looking for change and I gave him. I'm now left with only one note of ₹100 which is enough for me for at least another week

Government scraps Rs 500 and Rs 1000 notes!-15157032_1385389314812305_8054278841810246777_o.jpg

Government scraps Rs 500 and Rs 1000 notes!-15138305_1385389574812279_6365946661116480474_o.jpg

Government scraps Rs 500 and Rs 1000 notes!-15123067_1385389348145635_863933136668675494_o.jpg
hemanth.anand is offline   Reply With Quote
Old 23rd November 2016, 09:17   #1197
Senior - BHPian
 
Join Date: Dec 2010
Location: --
Posts: 9,774
Thanked: 14,859 Times
Default Re: Government scraps Rs 500 and Rs 1000 notes!

Quote:
Originally Posted by hemanth.anand View Post
The ₹500 was nowhere to be seen in Bangalore but a colleague got it in an ATM in Delhi.
Got ₹500 notes from a SBT ATM yesterday. Seems to have arrived in Bangalore
volkman10 is offline   Reply With Quote
Old 23rd November 2016, 09:20   #1198
BHPian
 
batterylow's Avatar
 
Join Date: May 2014
Location: Driver seat!
Posts: 566
Thanked: 667 Times
Default Re: Government scraps Rs 500 and Rs 1000 notes!

Quote:
Originally Posted by hemanth.anand View Post
Finally completed the set of the current valid currency notes in India! ₹2686 in total-All 2015 printed crisp notes
I think you missed this , or is it not valid tender anymore

Government scraps Rs 500 and Rs 1000 notes!-2rs.jpg

Government scraps Rs 500 and Rs 1000 notes!-2rss.jpg

Last edited by batterylow : 23rd November 2016 at 09:23. Reason: Additional data
batterylow is offline   Reply With Quote
Old 23rd November 2016, 09:22   #1199
Distinguished - BHPian
 
sgiitk's Avatar
 
Join Date: Dec 2007
Location: Kanpur
Posts: 7,099
Thanked: 3,678 Times
Default Re: Government scraps Rs 500 and Rs 1000 notes!

@hemanth.anand; Thanks for the full set. I am still to see the 500 note. I did manage to get a nice poster for the new currency. No writing / marking else the note ceases to be legal tender.
Attached Images
 
sgiitk is offline   Reply With Quote
Old 23rd November 2016, 09:34   #1200
Distinguished - BHPian
 
hemanth.anand's Avatar
 
Join Date: Jan 2010
Location: Bengaluru
Posts: 2,098
Thanked: 5,697 Times
Default Re: Government scraps Rs 500 and Rs 1000 notes!

Quote:
Originally Posted by batterylow View Post
I think you missed this , or is it not valid tender anymore

Attachment 1577820

Attachment 1577821
₹1 ₹2 printing was discontinued in 1995. ₹1 made a comeback last year
And as per another notification by RBI, all notes printed before 2005 is withdrawn. So I guess ₹2 is no more valid
hemanth.anand is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Government likely to award 21 highway projects for Rs. 28,000 crore & 1,500 kms S2!!! Street Experiences 1 22nd December 2015 20:05
Fake Currency Notes - How do you tell the difference? kedarwalke Shifting gears 24 11th July 2012 17:22
Know your pace notes Tom Indian Motorsport 15 14th June 2004 20:09
Journey Notes - Bangalore- Cochin in a Vtec ajmat The Indian Car Scene 13 16th April 2004 20:29


All times are GMT +5.5. The time now is 02:14.

Copyright ©2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks