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Old 2nd September 2019, 12:18   #2806
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

As was indicated in earlier news reports, rs 2000 note printing seems to have reduced considerably after the first 5-6 months of demonetisation.

The proportion of rs 2000 note in value terms has dropped from 51% to 31%, while the proportion of rs 500 note has increased from 22 to 51%.

Link to news.


In my opinion, all this points to a "planned" demonetization of rs 2000 notes in another 2-3 years when it's value proportion would be below 20%.
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Old 2nd September 2019, 18:31   #2807
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The PM had indicated that while he is happy with 500 denomination he is not too keen on the 2000. I hear that they may remove it soon. Hence the unpopularity. Modi has a reputation of hinting at what he may do.
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Old 2nd September 2019, 20:13   #2808
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

I always used to dread the moment a 2000/- note was dispensed from the ATM. Trying to use it at a local store was a pain as my shopping bill used to be a lot less and they never wanted to take it. These days I don't see ATMs dispensing 2000/- notes, not in the last 5-6 visits. If they're done away with it that would be a good step.
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Old 3rd September 2019, 00:25   #2809
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Demonetisation was Modi's watershed moment and sadly not a good one for the citizens. Slowly and slowly since demonetisation the effects on economy are compounding and no improvement in sight to me. I do think large scale industries like auto are using the current climate for their benefit and want handout from the government which if given will not be passed on to the customer. Instead of lowering their inflated pricing they want Govt to reduce the gst.
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Old 3rd September 2019, 05:27   #2810
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by sdp1975 View Post
I always used to dread the moment a 2000/- note was dispensed from the ATM. Trying to use it at a local store was a pain as my shopping bill used to be a lot less and they never wanted to take it. These days I don't see ATMs dispensing 2000/- notes, not in the last 5-6 visits. If they're done away with it that would be a good step.
Just last week I withdrew 10K and got 5 2K notes. It was a nuisance trying to make change for them.
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Old 3rd September 2019, 07:07   #2811
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by sgiitk View Post
The PM had indicated that while he is happy with 500 denomination he is not too keen on the 2000. I hear that they may remove it soon. Hence the unpopularity. Modi has a reputation of hinting at what he may do.
Seems it's equally popular with counterfeiters. So much for that demonetization objective
https://www.livemint.com/industry/ba...136425194.html

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Fake 500 rupee notes up 121% in 2018-19, says RBI
Counterfeiting of the newly-designed ₹2,000 notes shot by 21.9% in 2018-19 in comparison to the previous year
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Old 3rd September 2019, 11:15   #2812
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by DigitalOne View Post
As was indicated in earlier news reports, rs 2000 note printing seems to have reduced considerably after the first 5-6 months of demonetisation.

The proportion of rs 2000 note in value terms has dropped from 51% to 31%, while the proportion of rs 500 note has increased from 22 to 51%.

Link to news.


In my opinion, all this points to a "planned" demonetization of rs 2000 notes in another 2-3 years when it's value proportion would be below 20%.
When the demonetized 500 and 1000 rupee notes in 2016, they could replace that only with 2000 rupee notes. That is the reason why they had to print a large number of 2000 rupee notes. Later they reintroduced a new 500 rupee note, and hence they could print more 500 rupee notes and go slow on 2000 rupee notes. Hence the decline. While at the time of DeMo the new 2000 rupee note was covering up for the 500 and 1000 rupee notes, after 5-6 months, it is covering up for the 1000 rupee note only.

I do not see them demonetizing 2000 rupee not anywhere in the near future. They are not so foolish to repeat that blunder again.

Last edited by blacksport : 3rd September 2019 at 11:18.
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Old 3rd September 2019, 12:17   #2813
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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I do not see them demonetizing 2000 rupee not anywhere in the near future. They are not so foolish to repeat that blunder again.
Though there may not be a demonitizing of the 2000 Rupee note, it may be weaned away by printing lesser or not printing anymore of them as in the case of the other denominations such as 2,5 etc. Frankly, it's extremely hard to transact a 2K note these days. Only if a purchase is in excess of 1K, do outlets even think of taking a 2K. Most often, the immediate response is, can you pay by any other mode?
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Old 3rd September 2019, 14:18   #2814
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

Well I got a first hand update from a Tier 2 city Gulbarga last week. I was flatly denied when I flashed a 2000 note. I was clearly told that it will be demonetized and we will not accept it!

I am sure major cities will follow soon. As a matter of fact since a month now I have not seen ATM's dispense 2000 notes at all !! Guess it is time to start flushing them out soon.

Last edited by sumathindra : 3rd September 2019 at 14:19. Reason: edits
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Old 3rd September 2019, 14:35   #2815
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by sumathindra View Post
Well I got a first hand update from a Tier 2 city Gulbarga last week. I was flatly denied when I flashed a 2000 note. I was clearly told that it will be demonetized and we will not accept it!

I am sure major cities will follow soon. As a matter of fact since a month now I have not seen ATM's dispense 2000 notes at all !! Guess it is time to start flushing them out soon.
May be the last straw to break the camel's back. Instead of demonetize may be they can silently withdraw from circulation these ₹ 2k notes: It was a stupid idea to replace 500 and 1000's with these 2k notes in the first place. With economy in doldrums; I think it may be a bad idea to send out such shock waves out now.
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Old 3rd September 2019, 14:53   #2816
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by sumathindra View Post
Well I got a first hand update from a Tier 2 city Gulbarga last week. I was flatly denied when I flashed a 2000 note. I was clearly told that it will be demonetized and we will not accept it!

I am sure major cities will follow soon. As a matter of fact since a month now I have not seen ATM's dispense 2000 notes at all !! Guess it is time to start flushing them out soon.
These days reality is the latest WhatsApp forward. Is this rumour doing the rounds?

No need at all to demonitise the note. Just distribute lots of the notes people actually want to use.
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Old 3rd September 2019, 15:15   #2817
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

I drew 10k from an ATM today and got 5 2k notes!! Not new ones though. I had to step into the bank's branch , wait in line at the teller window and get them exchanged for smaller denominations. So much for the convenience of ATMs.

OT: I wish ATMs have an option to select the denomination that one wants. This can be done at the teller windows, why not in ATMs?
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Old 3rd September 2019, 15:35   #2818
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Default Re: Government scraps Rs 500 and Rs 1000 notes!

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Originally Posted by blacksport View Post
I do not see them demonetizing 2000 rupee not anywhere in the near future. They are not so foolish to repeat that blunder again.
They need not demonetize it officially. The perception that it is going to be demonetized is enough for people not to hoard or transact using these notes. This is proof:

Quote:
Originally Posted by sumathindra View Post
Well I got a first hand update from a Tier 2 city Gulbarga last week. I was flatly denied when I flashed a 2000 note. I was clearly told that it will be demonetized and we will not accept it!
And if they still officially demonetize rs 2000 note in a couple of years when the proportion (by value) is below 20% (currently 31%), only the hoarders who could not dispose it off in these two years will be affected. Not much sympathy for them.
---
November 2021 (5th anniversary of demonetization) would be my guess when it would be officially demonetized; By that time, economy would have started also looking up.

Last edited by DigitalOne : 3rd September 2019 at 15:38.
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Old 3rd September 2019, 17:36   #2819
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They need not demonetize it officially. The perception that it is going to be demonetized is enough for people not to hoard or transact using these notes. This is proof:
They can't demonetize unofficially. They have to set a hard date and then declare these notes invalid. Even if shops stop accepting, you can go give it to a bank and they will have to accept.
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And if they still officially demonetize rs 2000 note in a couple of years when the proportion (by value) is below 20% (currently 31%), only the hoarders who could not dispose it off in these two years will be affected. Not much sympathy for them.
---
November 2021 (5th anniversary of demonetization) would be my guess when it would be officially demonetized; By that time, economy would have started also looking up.
I don't see that happening. Am sure hoarders have shifted to other means.
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Old 3rd September 2019, 17:36   #2820
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They ... up.
For me Demonetization is strict no no. First one brought economy to its knees without affecting black money hoarders at all . I think the slowdown we see today is long term impact of first demonetization. Though I supported demonetization when it was happening but today I feel it was huge mistake from economics perspective.

What Government can do is slowly withdrawing all Rs.2000 notes. But not a sudden jerk like last time.
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