![]() | #961 | |||||||||
Senior - BHPian ![]() Join Date: Aug 2006 Location: Bangalore
Posts: 1,671
Thanked: 2,019 Times
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1) Corruption: It just moves from old notes to new notes. With Rs 2000 notes, it is even easier to hoard large denominations. 2) Black money: Affects only that part which is held in cash in 500, 1000 notes. Also, let's say black currency hoarders discard their notes now. They will start again and in about 10 years they will be back to the level where they are. 3) Fake currency: Yes, the real benefit of this exercise. May be will last till the counterfeiters master new notes. Remember, in 2012 the folks were excited that Aadhaar will change everything. Seeing similar jingoism. Demonetization is a revolutionary step and nation is bearing hardship in the hope of seeing the fruits. But with same old legislation & old rules, not sure how much success the current Govt can achieve. Hopes of people will be quashed. PM has asked time till 30 Dec (50 days), let's see what can be accomplished ![]() Quote:
BTW, I hear people telling that normalcy will be restored within a week's time to a period of 6 months. But what would this new normalcy mean? Having withdrawal limit of Rs 2,500 per day or Rs 40,000 as before? Last edited by SDP : 18th November 2016 at 20:51. Reason: edited out parts touching politics | |||||||||
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![]() | #962 | |
BHPian ![]() Join Date: Feb 2013 Location: Mumbai
Posts: 336
Thanked: 406 Times
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![]() | #963 | |
Senior - BHPian ![]() Join Date: Feb 2010 Location: Bardez, Goa
Posts: 1,181
Thanked: 1,024 Times
| ![]() Dear friend this move was done by Govt only by way of giving license to PayTM and many other companies like Vodafone m-pesa as payment banks and which kind of woken up all the banks from their slumber and 'How to counter PayTM' was the single point agenda discussed very fiercely in their board meetings and now almost every bank has come out with their mobile-wallet. The next move was done by way of all banks to report real NPAs and make provisions for the same so that the real picture can come. I have no pity if in future the so called hard working bank Staffs get arrested as they all got their cuts in disbursing loans (as told first hand by many friends who work for PSU banks). Your blood will boil if you hear stories how an ordinary person is refused small loans by the same banks for want of any single document even if he had remaining papers or reference while they cant recover thousands of crores from big businesses whose all the paperwork and information they are supposed to be having. If anyone starts a fight against 'the corrupt system' as seen in numerous movies or discussed in various threads and is repeatedly reminded that one can't win against it. Imagine how big a risk our PM has taken against so many forces. Quote:
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![]() | #964 | ||||||||
BHPian ![]() Join Date: Mar 2013 Location: Navi Mumbai
Posts: 273
Thanked: 884 Times
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Banning of high denomination notes was advocated majorly as it would reduce stocking cash and create difficulties in high value cash transactions. What stops one from piling another stash or am I missing something? Quote:
I have seen both spectrums closely, Rich businessmen how they are saving what they can and the poor (me) who have to stand in line. And believe me Sir its just not fair. No matter what amount is disclosed/deposited at the point of sale new black money will be generated and I see no provision to counter that. Instead we have a double value sleeker monopoly note. I couldnt believe a 2 lakh stack when I first saw it. Quote:
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![]() | #965 | |
BHPian ![]() Join Date: Nov 2009 Location: Ahmedabad
Posts: 144
Thanked: 133 Times
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Accountable liquid cash owners also will face some difficulty, but they will be able to regain their cash in new currency or in form of bank deposit largely unhurt. Unaccountable liquid cash owners have a much bigger and difficult burden on them to prove their source of income. I will not be sympathetic at all if their currency becomes scrap eventually. I also really wish and pray that government and IT dept scrutinizes all txns post 8th Nov, with property dealers, gold merchants for their source of income, identifies dubious and illegal source of cash and brings them to books of law. I favor suddenness of declaration as it minimized the chances of converting cash to other forms. I am seeing some effects already - property transactions reduced, gold which was priced about 50K is back to sub 30K level. I am really expecting property prices would reduce substantially and coupled with reduced home loan rates, properties may become more affordable for next 10 years or so. Other BHPian had suggested that there are easy way to convert large liquid cash to new currency and there are champions who will do this without much fuss. I wish government plugs such gaps and follows up de-monetization with good effective measures so as to ensure that benefits are realized and new black money piles are not created in near future. What is your objective take - without tainting it by giving it a political motive - on this initiative? Best regards JLS | |
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![]() | #966 |
Senior - BHPian ![]() Join Date: Oct 2008 Location: Dubai/Thrissur
Posts: 1,176
Thanked: 2,103 Times
| ![]() Isn't this step from government like this, in order to reduce the fatalities of road accidents, lets limit the speed limit to 15 Km/hr for all vehicles. If something we can learn from this is exercise is we need to be better prepared for such emergencies, like say a natural disaster or an attack. Do we have centralised disaster management control ? Last edited by ecenandu : 18th November 2016 at 20:47. |
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![]() | #967 | |||
BHPian ![]() Join Date: Aug 2012 Location: Kolkata
Posts: 653
Thanked: 993 Times
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- Its very difficult to have a master plan when you are dealing with as complex a country as India, now that it is in place, the least we can try and do is make this work. After all am sure most of us have railed against corruption/nepotism at some time or the other. Discussion and debate is fine, but trying to sabotage it just because one does not agree with it is anti-national | |||
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![]() | #968 |
BHPian ![]() Join Date: Dec 2009 Location: Bangalore
Posts: 123
Thanked: 118 Times
| ![]() Banks will be serving only senior citizens tomorrow. I pity bank employees as well. Hope they get a day off on Sunday atleast |
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![]() | #969 | |||||
BHPian ![]() Join Date: Mar 2013 Location: Navi Mumbai
Posts: 273
Thanked: 884 Times
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![]() | #970 |
Senior - BHPian Join Date: Apr 2010 Location: EU - Nordic
Posts: 1,830
Thanked: 1,931 Times
| ![]() I have seen the line repeated many times that most of the black money is not stored as cash, but invested in real estate, gold etc. Now, if I have some black money and I buy real estate with it, I convert my black money to real estate, but the seller is now holding it in cash. So it exists as cash with someone else. What am I missing? |
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![]() | #971 |
BHPian ![]() | ![]() The banker asked me to come at 9:30 but I could go only at 11:30. He used that excuse and only gave me 2000 value notes. I guess the more you have invested with them, the more pain they will take for you. He actually told me not to come as I had delayed but I was kinda irritated because I knew if I go I will still get the money. He just didn't want to work a bit harder for my sake... also the priority section had most of their staff twiddling their thumbs (saw at least 4) behind their workstations or on the phone. I just wish they had spread out across the other floors to move things faster. I had estimated there were about 150 people on the first floor who had come to withdraw money or deposit. |
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![]() | #972 | |
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![]() | #973 | |
Senior - BHPian ![]() Join Date: Sep 2014 Location: Chennai
Posts: 4,035
Thanked: 6,990 Times
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For example I might pay tax on my salaried income and pay a garage guy say 10k for some repairs on my car. He might just take it home and put it in a cash box rather than deposit it and definitely doesn't keep account books or pay tax on the amount. The white money I handed the guy is black in his hands. If he hands the cash to a store that sells auto parts and they give him a bill with vat and everything and declare the income the money becomes white again. | |
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![]() | #974 | |
BHPian ![]() Join Date: Jun 2013 Location: Toronto
Posts: 562
Thanked: 671 Times
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God, I so miss the days when we could trust the news. In other news - Tomorrow exchange would only be for Bank Customers and Seniors - Good move, make it permanent, see how the crowd thins out. http://timesofindia.indiatimes.com/i...w/55499630.cms Last edited by pratyush6 : 18th November 2016 at 21:48. | |
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![]() | #975 | ||
Senior - BHPian Join Date: Mar 2010 Location: Bangalore
Posts: 1,057
Thanked: 1,460 Times
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When you talk about cash they will talk about gold and real estate. If you attack gold and real estate, they will talk about personal liberties and right to property. So this is a never ending saga. If you can bring the shadow economy to less than 10% from the current 25-30% it will be a job well done. Quote:
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