Government scraps Rs 500 and Rs 1000 notes!

[pratyush6]

Well some of the comments justifying Black Money are rather poor in taste. Even if the Govt does not get any tax out of it - no one can deny the money being used to fuel RE prices. Then there are paid seats at elections, students being asked capitation fees, and money used for buying arms that land up with terrorists and Maoists. No one can deny that.
I would like to remove the scourge of Black Money from India and this is among the better steps to do it. I hope it does not stop here. Next on the list should be property and Gold. After all if you are honest you do not need to fear anything.

We know why Political Parties are opposing it - they sell seats in LS & Assembly elections - it is a known fact. They have nothing to do with people's suffering, thats just an act!

[Turbanator]

Assuming that even 60% of this is unaccounted,

No, on contrary I think the early guys are mostly legitimate. Guys with lots of cash are still thinking what needs to be done. Going to the Bank will be the last option for them, of course, they can still donate this and I don't think Government will be fussy about such donations.

[SilentEngine]

Originally Posted by SDP

So if the Govt ignores the pain of the common people, its anti-common-people and if they take steps to make the process a bit less painful, they are on the back foot?

It's better to be on back foot than be anti-common-people. At least it gives a sense that they are listening and willing to address the concerns, it's a step down from the stiff stance at the beginning.

Originally Posted by SDP

Not going to happen anytime soon, if ever. Hope you understand that this needs an engineer visiting EACH ATM besides software changes and trey/cassette changes.

I know it takes time, but this was according to Sunday's news:
http://economictimes.indiatimes.com/...w/55402944.cms
1000 ATM is a very small number, but still it will be interesting to see if at least that's happening or not.

Originally Posted by Lij

On the contrary it happened early this morning itself at an ATM near my place. Saw a couple of guys at the ATM and I thought to get some Rs 100 notes as well. Learnt that it ran out of Rs 100 notes last evening itself and are left with Rs 2000 notes, but there are very few takers for this denomination, me included.

That's good to hear, even if it means there are less takers for 2000s now, this ATM will not easily run out of cash at least. People who are desperate for some cash and don't mind 2000s will surely benefit.
Was this SBI?


Indelibe ink used to mark those who exchanges. Very interesting!
http://www.ndtv.com/india-news/night...y-hope-1625506

[Lij]

Originally Posted by SDP

....
Not going to happen anytime soon, if ever. Hope you understand that this needs an engineer visiting EACH ATM besides software changes and trey/cassette changes.

On the contrary it happened early this morning itself at an ATM near my place. Saw a couple of guys at the ATM and I thought to get some Rs 100 notes as well. Learnt that it ran out of Rs 100 notes last evening itself and are left with only Rs 2000 notes, but there are very few takers for this denomination, me included.

Originally Posted by SilentEngine

...
Was this SBI?

It was ICICI. But the issue with 2000 denomination notes is that there are very few who accept it right now since there is not enough change to tender for that amount.

[vibbs]

Originally Posted by indian21r

I have been running to banks/ atm's since morning to activate a beneficiary for online transfer. But this is not happening as banks suspended services. Now i am forced to go to the bank multiple times to do RTGS

Services are affected big time.

Really? Just curious which bank it is?

I added a beneficiary on friday (for the purpose of payment towards new flat purchase) with HDFC Bank. The beneficiary was activated by Sunday for maximum transfer. And I did one transfer (NEFT) on Saturday and one (RTGS) on sunday. All went through smoothly with no hickups whatsoever. Hard to believe that online transfers are suffering and one needs to visit banks to to RTGS.

[ptushar]

Originally Posted by Sawyer

I agree 100% with the latter part. However I have to say that doing the things quoted above are not revolutionary for me at least, I do it because it is easy and convenient to do these things.

I completely agree. Its not revolutionary for you, because you have experienced the convenience and thus made it your way of life. Unfortunately millions in this country are yet to experience the convenience since they are not even aware of its existence. Some are aware, but scared of using technology. (E.g. teaching your grandmother to use WhatsApp and then in a few months getting 20 forwards from her daily. It feels good, doesn't it?) I have realized that someone has to make an attempt to get people to start using technology. You will need to hold their hands for a few days till they get used to it. Once they are used to it, they will thank you for life for saving them their time and money. (And not to mention, your grandmother thanking you for providing her so much entertainment daily)

Originally Posted by msdivy

Whenever I visit a bank, I encounter educated folks who struggle to find right forms for withdrawal, pay-in, drafts, cheque deposits and then struggle to fill those forms in. ... That is the reason why many avoid dealing with banks.
PS: PM's Jan Dhan Yojana is more than 2 years old and hardly any bank is interested in promoting this scheme, due to high maintenance and low value.

I agree with this too. But the struggle in not permanent. Once they learn to do it, they will do it like anyone else. Yes, language is a bit of a trouble. Especially if you don't know the local language and also English. But there are people to help you with that too. And I completely agree that banks need to make their processes simpler. And to be honest they are doing that. The adoption of technology by Indian banks is a case study in its own right. The way banks like HDFC, ICICI and SBI have adopted technology is amazing. But to reach the masses, it will take some effort from the middle class citizens like us. We are workers to some company. And they insist to pay us through bank transfer. When someone joins a new company the company doesn't give us a choice of whether we want our salary as cash or in the bank. Irrespective of whether you know how to use the banking system or not, you have to provide a bank account number. So why can we not insist the same with our workers? If we don't help these people in their integration journey with the banking system, then who will? Or are we (once again) expecting that the government has to do this too?

Regarding the Jan Dhan yojana. Why did people open the accounts in the first place. Because a carrot was given to them that they will get all Aadhaar linked payments only into the bank account. Or that they will get Sukanya insurance, life insurance and accident insurance for a fraction of its cost. That was the carrot. But unfortunately there is no other need created for people to use these accounts. That need has to be created by us.

How many of you use Paytm or other wallets which give a cash back of 2% on almost all transactions. Thats your 2% money coming back to you. How many of us have told this to their staff and encouraged to start using these freebies so that they can save more. These days Paytm is accepted by vegetable vendors, auto wallahs and even your pan shops.

I still say that we need to rise and start getting more and more people to go cashless. Start with your maids, your milkman, your driver and see the change happening. It's not easy, as the resistance is high for change. Slow, it may be, but it is surely happening.

Originally Posted by Lij

It was ICICI. But the issue with 2000 denomination notes is that there are very few who accept it right now since there is not enough change to tender for that amount.

I don't know why, but I feel that the Rs 2000 denomination is a stop gap arrangement. A mechanism to help quickly improve the liquidity situation post demonetization. Won't be surprised if this currency is slowly phased out once the liquidity situation improves and the Rs. 1000 is re-introduced in a few months. I would suggest not to stack too much of this currency in the cash form. They may not demonetize it, but surely I think they will stop massive introduction into the economy. Once the liquidity improves again, and the the Rs. 2000 notes start coming back to RBI, they will replenish by Rs. 500 notes and slowly starve the system on the Rs 2000 notes.

[diyguy]

Originally Posted by vibbs

I added a beneficiary on friday (for the purpose of payment towards new flat purchase) with HDFC Bank.

On axis bank if you add the beneficiary through the phone app, you can activate and pay immediately. I heard for ICICI this is 30 mins again when done through the app. Atleast for Axis it has been this way for sometime now already. I was at a market about 6 weeks back and ran out of cash and had to pay a vendor 8k. ATM was not working and I got his bank details and transferred via IMPS instantly to his account on a sunday.

[vibbs]

Originally Posted by diyguy

On axis bank if you add the beneficiary through the phone app, you can activate and pay immediately. I heard for ICICI this is 30 mins again when done through the app. Atleast for Axis it has been this way for sometime now already. I was at a market about 6 weeks back and ran out of cash and had to pay a vendor 8k. ATM was not working and I got his bank details and transferred via IMPS instantly to his account on a sunday.

It is 30 mins on HDFC too. However there is a limit. Post 48 hrs, the beneficiary is activated to the maximum transfer limit you have set for the account.

Since banks were functioning over weekend there was no problem with the transfers going through.

[skumare]

Originally Posted by diyguy

On axis bank if you add the beneficiary through the phone app, you can activate and pay immediately. I heard for ICICI this is 30 mins again when done through the app.

Please check out UPI feature available on most banks' mobile app. Once somebody registers him/her-self and gets an UPI id (name@xyzbank), anybody else registered on UPI can send money to him/her using just this id. No need to share account details etc.
There are no transaction fees for this service. Share this with as many as you can.

[sukhoi30]

Originally Posted by indian21r

I have been running to banks/ atm's since morning to activate a beneficiary for online transfer. But this is not happening as banks suspended services. Now i am forced to go to the bank multiple times to do RTGS

Services are affected big time.

Sir, you are a member of team-bhp. So I would assume you are also owner of a vehicle with probably a team-bhp sticker. You would also have a smartphone and most probably have tons of apps including team-bhp app. I bet, you will have apps for photos editing, selfie clicking, favorite song lists, movie ticket booking, youtube apart from lot of interesting games etc.
Now, tell me, have you ever thought of downloading your banks' app? Ever thought of subscribing to their app services with which you can add beneficiary, do transfer, RTGS/NEFT etc. through the mobile phone app of your bank? Ever checked with your bank if they provide such services through their app.
If you are going to the bank physically to get a beneficiary added at a time when the banks' priorities are different, then I am afraid it is not a good sign.

[SDP]

Originally Posted by SilentEngine

It's better to be on back foot than be anti-common-people. At least it gives a sense that they are listening and willing to address the concerns, it's a step down from the stiff stance at the beginning.

...

Here's another update which seems to be a front-foot action :

"Indelible ink to be used to identify people who've made withdrawals"

http://www.thehindu.com/news/nationa...cle9348006.ece

[Sawyer]

Originally Posted by SilentEngine

Current solution is clearly a strong step, seems to have been taken with a leap of faith, with the hope that it will have a positive spill over effect despite the short term pain.

I hope that it is not a step taken in just the HOPE that it will have a positive spill over effect, but as part of a conscious PLAN of doing everything else that also needs to done by the government, including reducing the size of government. Hope is only permitted where the ability to control and act is missing!

Originally Posted by ptushar

I still say that we need to rise and start getting more and more people to go cashless.

Admirable indeed, but not to be put on the same level of merit as joining a revolution. And doing this without also doing the truly revolutionary and hard to do things that are the need of the day, isn't going to turn the country around. Which of course no one wants to face up to, because we want to continue to merrily bribe our way out of trouble or pay cash to get a noticeably cheaper deal, or to flout traffic rules when no one is watching, etc etc. We just want everyone else to stop doing so.

We therefore are all just as culpable as the people who have the black money that we are busy gleefully pointing to at this time but a holier than thou attitude isn't merited. How many of us have NOT or would have NOT have done the same thing that they did, even when we had or would have had the same opportunity to do so? Most of us that don't have black money don't have it because we have not been able to find a way to do so.

[TD_GHY]

Some pics from Social Media. How this move has changed the way honest people will shop in the future.

P.S: I am not associated with any organisation.

[msdivy]

Originally Posted by pratyush6

Even if the Govt does not get any tax out of it - no one can deny the money being used to fuel RE prices. Then there are paid seats at elections, students being asked capitation fees, and money used for buying arms that land up with terrorists and Maoists. No one can deny that.
I would like to remove the scourge of Black Money from India and this is among the better steps to do it. I hope it does not stop here. Next on the list should be property and Gold. After all if you are honest you do not need to fear anything.

We know why Political Parties are opposing it - they sell seats in LS & Assembly elections - it is a known fact. They have nothing to do with people's suffering, thats just an act!

So far the only action taken by Govt is to create currency crunch. While this has affected anti-social elements (stone pelters, maoists), it has affected legitimate businesses more. I wish & hope Govt has the plan to curb the black economy menace. Otherwise, the game will start with Rs 2000 notes.

Originally Posted by ptushar

The adoption of technology by Indian banks is a case study in its own right.

Last month, I was charged for cash deposit at an SBI branch. The official there told me banks are a planning to charge customers for every bank visit. This doesn't help the cause of getting poor into the banking system. The alternative is online banking (requires a computer) or a smart phone with data plan. Not sure how many can afford this.

Originally Posted by SDP

Here's another update which seems to be a front-foot action :

"Indelible ink to be used to identify people who've made withdrawals"

http://www.thehindu.com/news/nationa...cle9348006.ece

Interesting, not sure how people will react.

[sukhoi30]

I went to my local branch of my bank, Kotak. I was surprised to see there were hardly 5 - 10 customers inside the bank. I filled up the deposit slip and submitted my old notes to be deposited in my account. In the same counter, I used my cheque to withdraw some cash. The cashier even obliged me with Rs. 2000 worth of Rs. 100 notes. All this within 30 mins. ATMS were not functional.

I chatted with a bank official and asked why so less crowd today. She mentioned that maximum people who came in the last few days, came to just exchange old currency. Many had this apprehension or still have this fear that banks are going to run out of money. Some do have genuine expenses, but majority wanted to just exchange old currency.

Now, people are just waiting at ATMs to get Rs. 100 change as most have realized they are not getting change for the 2000 notes they got.
I strongly believe, certain section of media and their selective coverage is responsible for this entire issue. I am really unhappy that such an important event and the media, instead of assuring people have contributed to the chaos. Worse, the opposition political parties have picked up cue from media and no one knows the ground reality.

One channel I was watching have reporters asking or rather exhorting the people in queue to say that they are being harassed.
Then there are people who are paranoid that there is no cash, they bring 4 - 5 cards to withdraw cash from ATMS thereby inconveniencing many.

As many, even in this forum has pointed out, it is an inconvenience for some time but certainly not a tragedy for common (read honest) people.