Author Topic: ₹500 and ₹1000 Banknotes are No More Legal Tender  (Read 13645 times)

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Offline Bimat

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₹500 and ₹1000 Banknotes are No More Legal Tender
« on: November 08, 2016, 03:51:42 PM »
Prime Minister has just announced that banknotes of denomination ₹500 and ₹1000 are no more legal tender in India. The decision will be implemented with immediate effect.

More details soon.

Aditya
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

Offline Bimat

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₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #1 on: November 08, 2016, 04:10:23 PM »
So RBI is introducing newly designed ₹500 and ₹2000 banknotes. Current ₹500 banknotes are no longer legal tender but you can exchange them at banks.

Aditya
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

Offline Bimat

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₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #2 on: November 08, 2016, 04:55:49 PM »
So you can exchange your old ₹500 and ₹1000 banknotes in banks but you have to show your identity proof. Hmm.

Tomorrow is going to be a chaotic day. ATMs closed, banks closed. ::)

Aditya
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

Offline dheer

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Re: ₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #3 on: November 08, 2016, 05:36:40 PM »
Fantastic Move to curb black money.

Now all the older notes will become extremely rare  >:D
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Offline Enlil

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Re: ₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #4 on: November 09, 2016, 03:22:42 AM »
You really think this is going to curb black money, those who have the means would have converted their currency into other valuable products long ago. This is a publicity stunt. Also what did the 1978 currency demonetisation, the 1000, 5000 and 10,000 do?
« Last Edit: November 09, 2016, 08:00:55 AM by Enlil »

Offline Pabitra

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Re: ₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #5 on: November 09, 2016, 05:09:06 AM »
This is a publicity stunt. Also what did the 1978 currency demonetisation, the 5000 and 10,000 do?

Of the 1500 million notes in circulation, only 140 million were deposited back and rest never came back. I am sure bank note collectors were happy to get them at fraction of face value.

Offline dheer

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Re: ₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #6 on: November 09, 2016, 05:37:59 AM »
Of the 1500 million notes in circulation, only 140 million were deposited back and rest never came back. I am sure bank note collectors were happy to get them at fraction of face value.

Are these the right figures? I think even the Rs 1000 note was de notified around same time.
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Offline Bimat

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₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #7 on: November 09, 2016, 03:38:25 PM »
If you have black money in the form of gold, visit a jeweler and get it liquidated. Gold price up by 4k to 34k per 10 grams in single day. No identity proof required if your purchase is below 50k/day. Black money turned white without any hassles!

Aditya
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

Offline Bimat

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₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #8 on: November 09, 2016, 04:20:15 PM »
You really think this is going to curb black money, those who have the means would have converted their currency into other valuable products long ago. This is a publicity stunt. Also what did the 1978 currency demonetisation, the 1000, 5000 and 10,000 do?

Absolutely agree! A wise person would never keep his/her black money in the form of cash. It may be in the form of gold/land/drugs but not cash. Only politicians may face problems as they have to keep huge stock of money as money distribution during polls is very common in India. Builders, businessmen etc. will safely escape.

Moreover, introduction of ₹2000 banknote and a redesigned ₹500 banknote makes the whole exercise a futile one.

Aditya
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

Offline Bimat

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₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #9 on: November 09, 2016, 05:14:28 PM »
As expected, a massive jugaad (as we say in India) has started.

Photo from Kolar, Karnataka: MLA and few politicians have given money to people in a meeting; 3 lacs (300k) per head as a loan.

Aditya
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

Offline Enlil

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Re: ₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #10 on: November 10, 2016, 02:33:38 AM »

Moreover, introduction of ₹2000 banknote and a redesigned ₹500 banknote makes the whole exercise a futile one.

Aditya

Mainly because the corrupt people will ask for lower denominations now, the new 500 and 2000 rupees they will dispose of quickly.

And the poor have to suffer what they must.

http://www.bbc.com/news/world-asia-india-37921672
« Last Edit: November 10, 2016, 03:57:37 AM by Enlil »

Offline dheer

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Re: ₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #11 on: November 10, 2016, 04:08:08 AM »
Absolutely agree! A wise person would never keep his/her black money in the form of cash. It may be in the form of gold/land/drugs but not cash. Only politicians may face problems as they have to keep huge stock of money as money distribution during polls is very common in India. Builders, businessmen etc. will safely escape.

Moreover, introduction of ₹2000 banknote and a redesigned ₹500 banknote makes the whole exercise a futile one.

Aditya

They also keep in USD/EUR/GBP currencies.  >:D
It is risk mitigation technique apart from Swiss and other tax heavens.
Large players have way back mitigated the risk and have only nominal amount in INR in black money. But there are tons of small shops / small business / doctors / path labs / CA / Lawyers / etc, they all have tons of black money at homes.
http://coinsofrepublicindia.blogspot.in
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Offline Bimat

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₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #12 on: November 10, 2016, 06:06:49 AM »
Petrol pump owners have discovered new way to make (more) black money: You pay them using old ₹1000 note and they will give you petrol of ₹700. ₹300 (which effectively is new black money generated) is their profit. ::)

Those who have unaccounted black money in ₹1000 notes are preferring to get petrol instead of just burning them or paying huge penalty to government.

Aditya
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

Offline dheer

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Re: ₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #13 on: November 10, 2016, 07:22:55 AM »
Petrol pump owners have discovered new way to make (more) black money: You pay them using old ₹1000 note and they will give you petrol of ₹700. ₹300 (which effectively is new black money generated) is their profit. ::)

Those who have unaccounted black money in ₹1000 notes are preferring to get petrol instead of just burning them or paying huge penalty to government.

Aditya

The other trick employed is quite a few would give them Rs 100 notes. They keep it and sell them in market for Rs 1000 notes. Because they can legally deposit the OHD into banks upto the collection of the day.

There are other such means ... so every good or bad thing, there are opportunists who do make money. >:D
http://coinsofrepublicindia.blogspot.in
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Offline Bimat

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₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #14 on: November 10, 2016, 03:10:30 PM »
This is tragic. Who will be held accountable for this?

Indian farmer commits suicide after banknotes of Rs500, Rs1000 banned

November 10, 2016   

NEW DELHI: A farmer in southern India committed suicide fearing she would be left penniless after the government's shock decision to withdraw high denomination notes from circulation, police said on Thursday.

Kandukuri Vinoda, 55, had a large amount of cash at her home in 1,000 and 500 rupee ($15, $7.50) notes and panicked that her savings had become worthless when she heard Prime Minister Narendra Modi's surprise announcement on Tuesday.

"The family told us she panicked after hearing about the note ban and hanged herself at her home," local police officer Raj, who only uses one name, told AFP.

Vinoda from Mahabubabad district, east of Hyderabad city, had sold some land last month and was paid around 5.5 million rupees ($82,500) for it in cash.

She used some of the money to pay for her husband's medical bills and planned to use the rest to buy a new plot of land, local media reported.

Many Indians living in rural areas keep large amounts of cash at home because of a lack of banks in remote areas and to avoid paying taxes.

The withdrawal of the notes is part of Modi's campaign against corruption and "black money", and the government has tried to reassure worried citizens that only tax dodgers will suffer under the move.

Police in northern Uttar Pradesh state said they were investigating reports that people were burning off sacks of notes to avoid declaring them and being landed with heavy penalities.

"We have sent the samples for forensic tests and asked bank authorities to authenticate these are currency notes," police chief of Bareilly district Joginder Singh told AFP.

Earlier this year, the government ran a four-month tax amnesty, which saw Indians declare nearly $10 billion in hidden wealth.

But the scheme ended last month and anyone now depositing large amounts of cash could face a bill of up to 200 per cent in back taxes.

Source: Gulf Today
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.