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Old 28th November 2016, 12:44   #1381
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

After demonetizing majority of the currency under circulation, our PM has spoken yesterday about moving towards cashless economy. I would say a step in the right direction, though it would involve inconveniencing a lot of people. It has sparked a lot of discussions right away, as if paper money is going to be withdrawn starting today.

Questions such as who will pay my Mobile internet bill if I have to use paytm, only makes me laugh. I agree that, as a customer, just to buy groceries I should not be forced to do an internet recharge. However, why should I be concerned, if the government is forcing the vendors to provide multiple payment modes? As a customer, I get better service, correct?

They also sympathize with the poor vegetable vendors for their survival if they have to buy expensive Smart phones, and learn how to use it. Smart phones need not be expensive, and these days we can get a pretty good smart phone at 5K at new, and at around 2K for used. A Smart phone does not always mean an iphone. And the world around us is changing fast, and many businesses are already extinct due to the rise of e-commerce sites. There are even sites now to deliver vegetables & groceries at home. So, would you rather wait until such sites grow to slaughter your business?


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Originally Posted by sgiitk View Post
There is a rumor being spread, that the 2000 note will be withdrawn soon. Apparently a ruling party MP also said so. I personally do not think so, but rumors have a habit of picking up speed of their own.
I would say, even if it is a rumour, that is a good thing. People have to get used to the idea that, money is no longer stored in the form of currency in locked trunks. Liquid cash can only be saved in bank accounts tied to PAN cards and aadhaar cards, thus bringing it under the tax net.

Before expecting the politicians to be saints and bring in their black money in Swiss bank accounts, let us all be correct, and pay our taxes in full, every year. Let us remember that the magnitude of unaccounted money in our own country is huge in comparison to what is hidden away in foreign banks. (Rs.1000 each tax evaded by each individual = 1.25 lakh crores, for example)
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Old 28th November 2016, 12:46   #1382
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by FrozeninTime View Post

Also my problem is not with demonetization per se but the way government is trying to control my money.
I will do whatever I want with my money for which I have paid taxes. Government has no business to direct me put money in bank account as it is legitimately earned.
Control is not the correct word, in my opinion. Plus, one can still do whatever one wants with their money. It is just because due to demonetization, there is a cash crunch right now, that we may have to curb our "the way I want to spend my money". Govt is trying to manage the way people spend (cash vis a vis electronic), not to control the spending per se.
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Old 28th November 2016, 13:11   #1383
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

Everyone is debating on benefits or hassles of going to Paper free currency, I have seen shopkeepers encouraging paytm or credit / debit cards, most of the guys are simply ignorant that more money in their bank account means more taxes besides lot of expenses in maintaining account books otherwise everything that goes in their bank becomes profit.
Let me see who all remains or encourage such transactions after a while.
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Old 28th November 2016, 13:59   #1384
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by FrozeninTime View Post
Also my problem is not with demonetization per se but the way government is trying to control my money.
I will do whatever I want with my money for which I have paid taxes. Government has no business to direct me put money in bank account as it is legitimately earned.
You still have the right to do whatever you want with your money if you have already paid taxes. The restriction for cash withdrawal is till Dec 30th. This is to reduce or control the shortage of cash. Post that, if you want you can withdraw the entire amount from bank and keep it wherever you want.
If you have cash in old notes, then you can only deposit them in bank accounts. This is part of the entire scheme to draw out black money. There is no restriction on how much you can deposit if you can legitimately prove that your money is already taxed.
I don;t think Govt. has made it compulsory that you "must" have bank accounts. And there is no law being passed that you "must" open an account to access your money. And once you paid your taxes you are free to use "your" as you wish. Right!!!
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Old 28th November 2016, 14:22   #1385
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by hybridpetrol View Post
Questions such as who will pay my Mobile internet bill

Smart phones need not be expensive, and these days we can get a pretty good smart phone at 5K at new, and at around 2K for used.
@ hybridpetrol: You do not need a smartphone at all. Many of us (me included until last week) do not know of the USSD service on our mobiles.

If you have your phone number registered / tagged to your account on any of your banks, all you have to do is dial *99# from your mobile.

You are able to pretty much do most of your required transaction (that you would have done on your Bank Mobile app) right from your phone - no app / no data / no SMS charges. Give it a try. I showed it to the guy who cleans our car on his very basic phone and he was really floored. (I was too .. )
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Old 28th November 2016, 14:53   #1386
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by GJ01 View Post
@ hybridpetrol: You do not need a smartphone at all. Many of us (me included until last week) do not know of the USSD service on our mobiles.

If you have your phone number registered / tagged to your account on any of your banks, all you have to do is dial *99# from your mobile.
You are right. Here is an official FAQ on this. http://www.npci.org.in/documents/FAQs-NUUP.pdf

Different types of payment systems have been launched. Unified Payment Interface (UPI) seem to be a very easy and secure way of transferring funds between banks.
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Old 28th November 2016, 15:33   #1387
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

The 500 note seems to resemble the US currency. Bland monochrome grey. Only the denomination is in a different colour.

From the 2000 note, since I am still to lay my hands on one, it is quite a bit narrower as well. I expect this (and the old 100) to become the staple currency. If we go by history multiples of 2 have not been popular. Also, at least currently, 2000 may be too high a value for normal purchases.
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Old 28th November 2016, 17:38   #1388
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

I'm curious why we aren't moving towards standardizing the size of our currency notes. Any particular drawbacks to such?
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Old 28th November 2016, 18:45   #1389
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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I'm curious why we aren't moving towards standardizing the size of our currency notes. Any particular drawbacks to such?
You mean one size for all denomination notes? One reason for not having that is to enable easy recognition of denomination by the visually challenged people.
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Old 28th November 2016, 18:54   #1390
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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You mean one size for all denomination notes? One reason for not having that is to enable easy recognition of denomination by the visually challenged people.
No, that is not the reason. For visually challenged, they have some embossed stripes and figures added to the notes.
The notes are smaller because it is cheaper to print. Smaller notes require less paper, less color and less everything. Not only is it cheaper, you can print it faster too.
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Old 28th November 2016, 19:02   #1391
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

Notes can have a uniform size and still have different construction, color, features et al. It also brings added logistical benefits on the consumer side, esp. at ATMs that can take every size with just a dispensing software tweak for value.

What gives?

P.S. I'm a big fan of the new notes' construction. The 2000 rupee note could've been a little less wide but it's far more wield-y than the erstwhile 500/1000 denomination.

Last edited by Chetan_Rao : 28th November 2016 at 19:03.
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Old 28th November 2016, 19:41   #1392
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

Quote:
Originally Posted by binand View Post
to enable easy recognition of denomination by the visually challenged people.
Quote:
Originally Posted by sukhoi30 View Post
No, that is not the reason.
Well, the ECB has listed that (facilitating visually impaired people) as one of the reasons for different sizes of the Euro notes. I assumed it is then a universally adopted convention. My mistake, probably.

http://www.ecb.europa.eu/euro/visual.../index.en.html


Quote:
Originally Posted by Chetan_Rao View Post
Notes can have a uniform size...

What gives?
The ECB guidelines which they came up with, after consulting blind folks, give some reasons for the difference in size and colour.

Quote:
Originally Posted by Chetan_Rao View Post
The 2000 rupee note could've been a little less wide but it's far more wield-y than the erstwhile 500/1000 denomination.
The 2K note snugly fits my wallet; a lot better than the 1K note. :-) No wrinked/frayed edge, now!
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Old 28th November 2016, 20:28   #1393
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There are probably many other considerations to currency design, ones I could think of apart from visually challenged recognition were machine recognition in vending machines, internationally unique characteristics, materially strengthen to increase the life of the note, decrease probability of tear/damage and make it difficult to counterfeit.
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Old 28th November 2016, 20:44   #1394
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

Quote:
Originally Posted by sukhoi30 View Post
No, that is not the reason. For visually challenged, they have some embossed stripes and figures added to the notes.
The notes are smaller because it is cheaper to print. Smaller notes require less paper, less color and less everything. Not only is it cheaper, you can print it faster too.
It is definitely a reason and a consideration for currency design. But it not THE only reason. Size and those embossed stripes are all for the visually impaired. Also different sizes are needed for machines. Otherwisethe machine cannot recognise if a it is filled with a lower denomination and it couts it as a higher denomination. And of course the smaller size=less cost reason is also true.

Last edited by hemanth.anand : 28th November 2016 at 20:46.
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Old 28th November 2016, 21:41   #1395
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

All this cashless society stuff means that every transaction has to go through some bank or financial institution.

I'm sure that that's good for them.
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