![]() | #1606 | |||
Senior - BHPian ![]() Join Date: Aug 2006 Location: Bangalore
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![]() On cashless options, I see some posts on PayTM & similar wallets. For me, PayTM is a startup company feeding on investor money, struggling to stay afloat. They are not sure of their revenue when funding stops. They have great payments technology but very poor grievance handling mechanism. They are in low margin business and now taking a hit on card & bank transaction charges. They are trying to create a walled garden, but experience tells people don't like walled gardens. For me, the best cashless option is a credit card. Any innovation in simplification of card transactions will be beneficial and aid transit to a cashless economy. Cost of living, consumption, avenues for spending & the population is more in cities. Last edited by msdivy : 13th December 2016 at 11:31. | |||
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![]() | #1607 |
Team-BHP Support ![]() ![]() | ![]() Last two weeks I was at my Rural office, and had to visit my 80 year old widowed mom in her village couple times. I withdrew money from my local branch, just one guy in the line when I showed up. The cashier gave me four 2K and twenty 100s as I requested, without any fuss. Then I visited my mom and asked whether she needed cash. She said no, she has enough for now. Then I took her to the bank for the life certificate, the bank was deserted (just 3 officials & no customers) and their ATM had cash. And the rural/small town retailers are still demanding cash, reluctant to switch to digital payment because it will show their true income on the record, and make them liable to pay tax. That I found really tiresome. Some of the bigger shops have started installing card machines. One guy said he has applied and it will take 3 weeks to come because of the heavy demand. Then I came to Bangalore in this weekend. Yesterday I saw long lines at HDFC bank, none looked poor. ![]() ![]() |
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![]() | #1608 | |
Senior - BHPian ![]() Join Date: Nov 2011 Location: Bangalore
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Theoretical economics sounds funny to you, why don't you comment on the competition and regulations aspect if you have anything worthwhile to say. Vast quantity is the amount of money recovered from one person that would have taken 4 years of daily visits to get for ordinary people. I hope that satisfies your excruciatingly high standards. It's funny people talk about demonetization as if it will reduce corruption, just two days ago, there was an article about how the law has been modified to make prosecution practically impossible. Talk to someone in the real estate industry and see if they are able to get registration done without a bribe, same bribes, new notes and business as usual. This is called price taking in economics, theory and otherwise. | |
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![]() | #1609 | |
Senior - BHPian ![]() | ![]() Quote:
He also told me several construction and jewelry workers had returned back to West Bengal from other parts of the country. Here in Bangalore , ATMs are dry - certainly in my neighborhood , barring the one in my apartment complex. My office ATM is always dry and runs out of cash in an hour of loading with long queues. Last edited by sdp1975 : 13th December 2016 at 11:42. | |
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![]() | #1610 | |
BHPian ![]() Join Date: Sep 2007 Location: Pune
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I was expecting a serious comment and I see this. Brought an instant smile on my face. Well, the fact that you have a great sense of humour suggests that the surgery went very well indeed. ![]() Quote:
I really believe that India's UPI, Aadhaar and Rupay are serious game changers. The world is watching what we do with this. If these are integrated correctly and pushed hard into India then we have a potential to beat the best in the industry. The forces who have bled India like parasites and leeches will surely throw spanner at works, but as a nation we will need to be resilient and push on with the implementation. Yes, a few people will crib and cry and talk of inconveniences. But we will need to push on. For my part, I have taken a stand that as far as practically possible, I will walk away from an only cash deal. Whether it's a vegetable vendor or a builder, unless they accept cashless mode of payments, they will not get my business. Well, losing my business may not be a huge deterrent to them, but as more and more people adopt this strategy, the change is bound to happen. | |
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![]() | #1611 |
BANNED Join Date: Nov 2006 Location: Bengaluru
Posts: 4,370
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| ![]() If the banks get the remaining 2.5 lakh crores deposited into banks, it would be that the scheme failed to do what it was supposed to. Black money has come back into the system. The plan was to render them useless. Blame the corrupt system. Netas in the govt thought they will out smart the Netas and their cohorts :( Unless there will be raids and booking of officials and people who had black money, the scheme has un-necessarily created lot of problems. And this is exactly what the opposition parties in this country are hoping for. This scheme was in no way required to bring about a cashless economy. |
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![]() | #1612 |
Senior - BHPian ![]() Join Date: Dec 2007 Location: Gurugram
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| ![]() @sdp1975; My information was from our son in law as of yesterday evening. He has his office in Gillander's House, Burra Bazar area and lives in Alipore. So maybe we have a checkered scenario. Yesterday, was business as usual in Kolkata. Gwalior was my brother-in-law who has about three banks within easy walking distance. Last edited by sgiitk : 13th December 2016 at 12:22. |
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![]() | #1613 | |||
Team-BHP Support ![]() ![]() | ![]()
Again, you are assuming a lot. This is why I hate discussing economics with people who don't use it as part of their every day job. For me it is bread and butter. Quote:
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This is the recurring problem in the thread, as well as earlier economics thread. Fraud is common place in any economic system. It doesn't disprove the economics of demonetization. Let me give a physical example: Demonetization is like dropping a cotton ball from a height, hoping that it will hit the bulls-eye target painted on the ground. All the fraud stories and the reluctance to go cashless, are like the air resistance and crosswind offered to that cotton ball. It will definitely slow down the cotton ball, and it might take longer to reach ground. It may also get blown sideways and not fall exactly into the bulls-eye painted on the ground. That means the intended effect may happen slower and be inaccurate too. That is the nature of any economic plan. But you can't claim that gravity has been disproved due to this delay and inaccuracy. Only in a vacuum it falls straight and at the best speed. Just like how cotton ball's travel towards the bulls-eye get affected by air resistance and crosswinds, the demonetization goal will be affected by frauds and reluctance to accept cashless economy. We can't have an economic vaccum where fraud and reluctance will be completely absent. As long as it doesn't blow too far from the target, it is not bad. We will know the full effect only after few months or even a year. | |||
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![]() | #1614 | ||
Senior - BHPian Join Date: Jun 2014 Location: Bangalore
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If the government expected every single black money holder to just "roll over & die", that is not going to happen. And I don't think government also wanted it that way. Crooks have made these money, so being crooks they will try more dirty tricks to retain their money. What I feel is that government wanted a good amount of Rs.500 & Rs.1000s to come into the banking system (which means that they now have an audit trail). The only people who may not deposit the money are; people holding to counterfeit money. Or by people who cannot be exposed with such money (criminals, hawala operators etc.). Other wise every other chappie who can some how "cook the books" would try to escape using some legal provisions. For me, the whole exercise seems to have multiple angles (to look at it).
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![]() | #1615 |
Team-BHP Support ![]() ![]() Join Date: Jul 2010 Location: Bangalore
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| ![]() Amidst all the hullabaloo, has any one heard any mention of politicians and bureaucrats being investigated/prosecuted so far? And can anyone shed some light on what exactly were the amendments made to the Prevention of Corruption Act recently, and its implications? I'm skeptical of media reporting, and would rather get a reasonable non-partisan opinion on it, if possible/available. I did give it a read here and here. It does prima facie seem like stacking the deck in favor of bureaucrats, but I'd rather let someone more qualified than me on this stuff comment before I form any firm opinions. Last edited by Chetan_Rao : 13th December 2016 at 12:35. |
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![]() | #1616 | |
BHPian ![]() Join Date: Oct 2013 Location: bangalore
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Seriously whoever thought that they can take on an economy that was built for decades with a ill thought money changing scheme is not just naive, but an absolute idiot. As I said before lets wait till Dec 30, and hope they will give us the numbers, how much they collected, how much we lost due to reduced economic activity, and how much the govt had to spend printing new notes for this circus. Rs 200 is his take-home. If he has to give the govt another 30%, he will bill it to me not reduce from his take home. Simple math. Last edited by blacksport : 13th December 2016 at 13:00. | |
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![]() | #1617 | |
BHPian ![]() Join Date: Sep 2007 Location: Pune
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If he wants to take home Rs 200, then he needs to charge you appx Rs 285. That is the real math. And that is the right & legal ways to do this. | |
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![]() | #1618 | |
BHPian Join Date: Nov 2007 Location: Pune
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![]() | #1619 | |
Team-BHP Support ![]() ![]() Join Date: Jul 2010 Location: Bangalore
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His point is the doctor will increase his prices to keep his take-home same as before so he isn't losing anything, while the end customer is paying nearly 30% extra to foot the bill for the doctor wanting to stay on the right side of tax laws, which is, reasonably speaking, none of the customer's business except to the extent of him not wanting to have anything to do with the said doctor. The govt. gains, the doctor loses nothing, the end customer pays significantly more for a service that was cheaper earlier. All of it legal of course, but the point in this instance is increased end-user expense, not legality (at the customer's end). The doctor should've acted legally in the first place, and will turn legal now without any loss or additional burden on his income. How is that fair to the end customer who ends up paying more of his legal TDS income so someone else can avoid taking a hit for his erstwhile illegal practices. Why is the service provider entitled to a free pass at the service user's expense? Last edited by Chetan_Rao : 13th December 2016 at 13:45. Reason: Grammar and rephrasing | |
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![]() | #1620 | |
BHPian ![]() Join Date: Sep 2012 Location: Bombay
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There are no gains without pains and if by bearing a pain of a few months my nation will be benefiting then it is definetly worth giving it a shot. Regards Dieseltuned | |
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