Superb move. Timing is a masterstroke. Feels great for Taxpayers at last Am sure this will have ramifications in auto industry as well. So one can expect better deals ahead. So people can hold on to their purchases for the next weeks.
Pardon me for my ignorance, but how does scrapping these would help? Most importantly can somebody help me understand why this is being done?
The entire parallel economy of black money running into lakhs of crores is dependent on higher denomination currencies. Corrupt officials, politicians, real estate industry etc all deal in 500 and 1000 rupees currency notes.
There's no mention of public transport among the exceptions, or did I miss it? Buses, autos and cabs are major 'cash transaction' areas even in this era of mobile wallets and plastic money.
Public transport - buses / trains / air travel are included in the 3 day exemption. For city transport, small currencies have been used to a considerable extent. So till we get stock of the 100's, it can be difficult for those who use esp auto's and to some extent - buses.
Places like Bangalore - many use monthly pass for buses. Hence these guys will also be un-affected.
Pardon me for my ignorance, but how does scrapping these would help?
Don't know why this is being done (apart from answering black economy); but trying to think from positive side...lot of unaccounted money can be several places except bank, mutual funds, NSE, BSE or anything that falls under the control of Govt or RBI.
This means, it can be under my bed, inside a cave, well, false ceilings or anywhere in form of any denomination available in India right from Rs 5, 10, 20, 50, 100, 500 or 1000.
If the said black economy in this country is said to be in so high value, storing 1 crore amount in currencies then one will need 100000 Rs 100 denomination. But a bundle of any currency is available in form 100s, so one will need 1000 bundles of Rs 100 denomination for Rs 1 Cr while for a Rs 1000 denomination will only need 100 bundles. Now decide which is easy to store, 100 bundles or 1000 bundles?