[bluevolt]

Though this move is being widely socially accepted and has garnered a lot of positive thumbs up from people, it somehow has become an issue for a common man.

I went to bank to deposit few grands that I had saved over past one year. I have habit of collecting a new note out of available in wallet and putting it for saving purpose.

Anyways, coming to the point, I went to the bank and came back without depositing after seeing the maddening crowd and rush at the banks.

I will try again on a working day taking half day maybe if the crowd does not subside even on a working day.

The issue is for the person who don't have lower denomination notes and had to line up in queue without any second option. You want to withdraw? Brace yourself to stand in line for 6-7 hours! Indeed people are lining up as early as 4-5 am at the bank today as told by the bank security guard and the condition will be worse tomorrow considering it's a Sunday. How many crorepatis are standing in those crowded long queues? the one who is facing the music now is the common man. People are forwarding messages that you are not standing on border, facing bullets etc., but let us think rationally instead of always be guided by emotions and forcing them on others as well.

The whole motive behind the move may be noble if not to just become a celebrity supporting social cause and I hope the inconvenience people are facing will not go waste.

The real huge undisclosed money holders will anyways find ways to recover whatever they can with their holdings.

All political parties must be quite happy at this point of time. They will not mind receiving donations from the biggies and return 50% to them later point of time. Well, may be I just gave one of the idea to convert/save undisclosed money these biggies must be holding.

Let's see if this becomes something worthwhile or something just to be talked about and no result in the future.

[LithiumSunset]

For how long is the 'inconvenience of the common people' bogey keep someone from trying something as bold as this?

Of course it's the poor who have to pay the price, in this case valuable time away from paying work. But ask any commoner in your surroundings if he or she thinks this is something that's bad and you'll get a resounding rejoinder. If anything it's our duty to help out those around us.

BTW those millionaires whom you don't find in the queues, rest assured they are sh****g bricks, and that's punishment. Whether it's punishment enough or not is a different debate.

[TD_GHY]

Originally Posted by bluevolt

How many crorepatis are standing in those crowded long queues? the one who is facing the music now is the common man.

All political parties must be quite happy at this point of time.

The crorepatis aren't in the queues, but people they've employed to deposit in bits and pieces are definitely there in the queues. Know of at least 2 who have employed 5-6 people for depositing their cash in smaller quantities.

Also, political parties don't look happy looking at their reactions. Even the party that came to power after an anti-corruption movement is against the move. But can't be sure of internal happenings. They may be happy, they may not be.

[airbus]

On Saturday morning I went to HDFC Bank to deposit cash at 8.30 am. Third position in the queue, bank opened at 10 am and I was done by 10.05 am. Though people were in queue I did not see anyone complaining. That branch only had new 2000 notes so it may be hard to use as there may not be enough smaller denominations in circulation. My neighborhood vegetable vendor took Sodexo coupon, in fact he tried to convince me that we should manage this 2 - 3 weeks of little hardship for betterment of the country.

[KD007]

Went to supermarket for grocery shopping. The shop had their network down and we're not able to accept cash. Finally agreed to accept old currency. Went to subway in same locality similar issue of card machines not working and after two other customer told these guys agreed to accept old notes.
Seeing a loss, the shop keeper agreed to accept old notes.
Have been sitting on the side lines looking at long queues at ATM and bank and also the fact that I can manage my day to day transactions by card and delay the ones in cash.
Hope more people do this so as to ensure the needy gets the new currency first.

[ach1lles]

I have no tax on my income. Atleast this part of my income.

Originally Posted by Samurai

I hope for your sake that the total amount is less the 2.5L. If not, they just transferred their monkey onto to your back. You will have to pay the tax and penalty on their behalf, while their slate is clean.

Generally yes, but the produce can be sold directly on the streets to anyone for any amount without any paper. Totally acceptable. Though 90L will be a stretch even with richest of farmers. On the other hand, 90L weekly cash can legitimately be a part of any medium sized business.

Originally Posted by Samurai

Even farmers have to show proof it came from sales of agriculture goods. They can't just claim.

[Sawyer]

Originally Posted by mayank0782

Please check no. 2.



If this does not clear the confusion, not sure what will.

I know, it is becoming clear to me that nothing will clear the confusion among the easily confused, because clear thinking does not seem to be common.

One last attempt:
Quoting the same para 2:
"The legal tender character of the existing bank notes in denominations of ₹500 and ₹1000 issued by the Reserve bank of India till November 8, 2016 (hereinafter referred to as Specified Bank Notes) stands withdrawn. In consequence thereof these Bank Notes cannot be used for transacting business and/or store of value for future usage. The Specified Bank Notes can be exchanged for value at any of the 19 offices of the Reserve Bank of India or at any of the bank branches of commercial banks/ Regional Rural Banks/ Co-operative banks or at any Head Post Office or Sub-Post Office."

Note by the way that this is just an FAQ, so it doesn't have the power of laws and rules made under the law. Nonetheless, it is an accurate answer in what is a guidance note.

Please appreciate the grammatical distinction between "CANNOT" and "MUST NOT". Cannot is used here, because the other party to the transaction would be legally entitled to refuse to accept them anymore, so you cannot use them in the manner you could before their legal tender character was withdrawn.

If the notes were banned, as is the common confusion surrounding this not so complex issue, the words in the FAQ would need to be " these Bank Notes "must not" be used for...." But to the best of my knowledge, there is no law on the Indian statute books that would permit the use of "must", indicative of a ban on the use of the note. The consequences of continued use are commercial and not penal. The penalties referred to are existing ones in the Income tax Act on undeclared income and can only be levied if the use/deposit of these notes is detected, and the possession of the notes cannot be proved to arise from income legally tax free, or income declared in an income tax return.

I haven't studied the subject of counterfeit money in India in detail, but it may well be like it is in the US: the use of counterfeit money is illegal in the US, IF the use is with an intent to defraud the receiver. And obviously it is not legal tender, so any one can legally refuse to accept it. But if they choose to do so, knowing that it is counterfeit, no ground for prosecution arises. There is no ban on counterfeit money in absolute terms in the US; it isn't treated like pornography may be in some states where it is banned in absolute terms.

[pedrolourenco]

Credit card swiping machines not working is most establishments since yesterday evening. Did my shopping at the local supermarket and was forced to pay cash for which I had to stand 2 hours in a line to get. What's the situation with credit cards in other places?

[Sawyer]

The really complex and therefore interesting issues to me are how things will play out in the macro economy in the short term and the long term. These are not easy to envision; one interesting line of thinking on the subject is in today's Times of India, in an article by Swaminathan Anklesaria Aiyer. He always write thoughtful columns, even if his political convictions may not be shared by all.

In a related thread on the subject here on the specific subject of the impact on the auto market, a member made the valid point that while new car purchases were always known to and therefore subject to IT department scrutiny, hoarders may have been using black money for living/holidaying/partying and the like where cash acceptance and absence of visibility to the IT department made it easy to use black money, leaving white money to be used for things like buying new cars and the like where there was that visibility. Now with the squeeze on the black, white money will have to be used for living etc., leaving less of it available for buying a new car.

If true, this means depressed sales for the auto industry for some time to come. And for many other consumer durables perhaps? On a macro level, if true, this means reduction of formal GDP growth and logically, loss of market cap on the stock exchanges.

There are a lot of unexpected, even unintended consequences to this step, and not all are going to be good news in the short term. It also hard to see how short this short term is going to be.

Interesting times. Confucius it was that was reported to have said that a good thing to wish on an enemy was: May you live in interesting times. Hopefully, ours will be different.

[SDP]

Originally Posted by pedrolourenco

Credit card swiping machines not working is most establishments since yesterday evening.

Did you face same problem at any other places as well?
Did they actually swiped the card and it gave error/declined? Or did they just tell you that the card-machines are not working?

Did my shopping at the local supermarket and was forced to pay cash ...

Might as well be a clever ploy by the supermarket to replenish their dwindling change.

[sgiitk]

I was quite surprised to see almost no queues in Srinagar, as per the box. How has J&K managed while the rest of the country is having the blues. Some secret recipe?

Now things are getting politicized. Remember the Parliament session starts on Wednesday. Maybe Wednesday will be taken up with references to deceased members (if there were many), so expect fireworks from Thursday.

[TorqueyTechie]

So the fake currency started albeit a very bad one though. A farmer in Chikkamagalur was given a fake 2000 rs currency mentioning that it was the new note released by the govt. Gullible as he was he accepted but got to know that it was a photocopy later when he showed it to his friends! Don't know why people have to cheat poor people in these times of distress.

Link : Fake 2000 rs

[karuvally]

With the ban on the notes and new laws to keep black money in check, I can't help but wonder if the luxury car segment in India is going to take a dip. Surely, 100% percent of the cars sold in India are not bought with money from legit sources :-) Can someone more knowledgeable shed some light on this?

[extreme_torque]

My dad's an officer with one of the biggest PSU bank and even since the ban came into effect, not one person has deposited more than 2.5 lakhs yet. I am not sure how effective this is going to be and I am also of the opinion that the big fish got a smell of it much before mere mortals did.

[Sree73]

Originally Posted by extreme_torque

My dad's an officer with one of the biggest PSU bank and even since the ban came into effect, not one person has deposited more than 2.5 lakhs yet. I am not sure how effective this is going to be and I am also of the opinion that the big fish got a smell of it much before mere mortals did.

In my bank branch (inside campus) I saw one was depositing 2.45 Lakhs on Friday. Making sure that it's below the threshold of 2.5 lakhs..