Author Topic: ₹500 and ₹1000 Banknotes are No More Legal Tender  (Read 13832 times)

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Offline dheer

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Re: ₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #105 on: February 22, 2017, 09:16:02 AM »
The best way to discourage cash is slowly stop / reduce Rs 2000 and Rs 500 notes ... print as many as Rs 100 ... while the cost will be high initially ... it will be offset by move to digital and taxation ...
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Offline Bimat

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₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #106 on: February 28, 2017, 07:54:13 AM »
ATM dispenses Rs 500 notes without serial numbers in Madhya Pradesh's Damoh

Desh Deep | TNN | Updated: Feb 27, 2017, 10.38 PM IST

BHOPAL: A schoolteacher in Damoh was shocked to see an ATM dispensing new Rs 500 notes without any serial number. Narayan Ahirwal had withdrawn Rs 1,000 from his account through an ATM on Monday.

The two notes of Rs 500 denomination did not bear any serial number. "How's it possible?", he showed the notes to others while stepping out from the SBI ATM near government hospital in Damoh.

Sanjay Asati, another Damoh resident, was the next in queue. He too withdrew two Rs 500 currency notes and they too did not bear the serial number. Soon, there was an uproar among the people.

Someone called the police and the ATM was sealed for some time.

"I went to the nearest SBI branch, about a km away from ATM, and showed the notes to the officials but they refused to exchange them," Narayan told the media.

Though the bank manager did not talk, branch employees told us to give them in writing about issue, Asati said.

This has not happened for the first time in Damoh, In the last one week, four such cases have happened including the two on Monday.

Three days ago, two similar incidents took place at the Ghantaghar ATM of Damoh. However, no police complaint was filed.

Talking to TOI, Damoh superintendent of police, Tilak Singh said, "I had come to know about the incident but have not yet received any complaint. Neither, the bank personnel nor the people who got the currency notes have lodged any FIR. In case we receive any complaint, we will definitely investigate."

Bank sources said pleading anonymity such issues do come up and we advise the victim to submit the complaint in writing for investigations.

"It is not possible to exchange the note immediately", bank sources said.

Source: Times of India
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Offline Figleaf

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Re: ₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #107 on: February 28, 2017, 10:27:16 AM »
A shocking lack of service that the bank reverts to bureaucracy, rather than helping people out of a problem that is the responsibility of the bank. However, there must be some collector around who'd happily pay extra for what are probably error notes.

Peter
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Offline Bimat

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₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #108 on: March 01, 2017, 04:28:30 AM »
Why don't we (collectors) receive such error notes/coins in change, I wonder? ;)

According to some unconfirmed reports, those ₹500 notes without serial number are fake :o. Further investigation is going on.

Aditya
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Offline Bimat

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₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #109 on: July 06, 2017, 04:56:19 PM »
Supreme Court of India has asked the government if it's still possible to give people one more chance to exchange their old notes. Court has added that such people should have a genuine reason for not exchanging them during the deadline. Center has asked two weeks' time to respond, which court has agreed.

The court is hearing several cases where petitioners have challenged government's decision not to allow exchange their old notes after December 31st. One such case is by a farmer, who was returning after selling his crop for some half million rupees. The police caught him and they suspected that this money is being used to influence the voters as some local elections were going on. He was jailed for nearly two months and police could not find any evidence against him, so he was later released. By that time, the deadline was already over, and he was left with half million 'useless' cash.

Meanwhile, RBI is STILL counting the old notes. ??? Finance minister was recently asked why there is so much of delay in this process, he replied that RBI has to count close to 14-15 trillion banknotes (in value), which itself is the admission of the fact that all the money returned to the banking system (before demonetization, the total value of ₹500 and ₹1000 notes was ₹15.4 Trillion). Nepal Rashtra Bank is still fighting with RBI over exchange of demonetized currency in it's/Nepalese people's possession and no solution has been found yet.

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 #110 on: August 27, 2017, 08:54:26 AM »
About 99% ₹1000 banknotes were returned to RBI, says RBI (indirectly). And this is when the counting is not over yet. So by the time they finish counting, the number may exceed 100%! ;)

99 per cent demonetised Rs 1,000 notes returned to RBI

Written By: Vicky Nanjappa Published: Sunday, August 27, 2017, 9:49 [IST]

Almost 99 per cent of the demonetised currency notes has returned to the banking system. This was an indication given by the RBI which put out data on its website.

According to the data on the Rs 1,000 notes, almost 99 per cent of the currency in circulation came back into the banking system.

The data suggests at the end of March 2017, there were Rs 8,925 crore worth of Rs 1,000 notes still in 'circulation'. According to the RBI, "notes in circulation" are all notes held outside Reserve Bank - that is by the public, banks treasuries and so on. Thus, this figure represents the total of all Rs 1,000 notes that were not deposited with the banks after note-bandi starting November 8 last year.

This goes on to suggest that just 1.3 per cent of the notes were not returned. The data has however not been provided for the Rs 500 notes which were also demonetised.

Source: One India


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Offline dheer

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Re: ₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #111 on: August 28, 2017, 08:17:24 AM »
It would tell how much FCIN is held by RBI  >:D
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Offline Bimat

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₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #112 on: August 28, 2017, 08:30:38 AM »
It would tell how much FCIN is held by RBI  >:D

 >:D >:D

Jokes apart, but I really feel bad for RBI. It appears that RBI will not even recover the printing and logistical cost of new banknotes from all this exercise... ::)

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 #113 on: August 28, 2017, 01:01:44 PM »
RBI is not a profit institution. They have already halved the dividend paid to Govt, reflecting this cost. So its Govt's loss.
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Offline Bimat

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Re: ₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #114 on: August 30, 2017, 03:56:44 PM »
RBI annual report: 99% of demonetised currency back with central bank

Of the Rs 15.44 lakh cr withdrawn with scrapping of Rs 500, Rs 1,000 notes, Rs 15.28 lakh cr are back

BS Web Team    |  New Delhi
Last Updated at August 30, 2017 17:51 IST

The Reserve Bank of India on Wednesday revealed in its annual report that Rs 15.28 lakh crore, or 99 per cent of the Rs 15.44-lakh-crore scrapped currency notes, had come back to the central bank between the government’s demonetisation decision and June 30, 2017.
 
However, in what came as a surprise to many, the RBI report said that about 89 million units of the demonetised Rs 1,000 notes, worth Rs 8,900 crore, had not come back into the system.

The share of the newly introduced Rs 2,000 notes in the total value of banknotes in circulation as at March-end was a little more than 50 per cent, the RBI annual report added.
 
Mentioning that the central bank spent Rs 7,965 crore on printing new currency notes in 2016-17, it said the overall currency in circulation into the system had come down by 20.2 per cent on a year-on-year basis as at the end of March.
 
In the biggest-ever demonetisation exercise India had seen, Prime Minister Narendra Modi on 8 November 2016 announced high-value currency notes of Rs 500 and Rs 1,000 would cease to be public tender. The move, to stem the circulation of black money and fake currency, and to choke terror funding and corruption, was to take effect within hours of the announcement.
 
The next few days saw serpentine queues at bank branches to deposit and exchange the demonetised banknotes. With people facing inconvenience, the government’s decision to ban old currency notes and handling of the whole process came under scrutiny. Reserve Bank of India (RBI) Governor Urjit Patel appeared before a probing parliamentary panel several times, but the total number of demonetised currency notes deposited in banks remained elusive for long. It was only in the Reserve
 
While there were several estimates and statements, the official numbers were not revealed until the RBI released its annual report on August 30. Here is a timeline of events since the announcement of the demonetisation decision:

[...]

Source: Business Standard
« Last Edit: September 01, 2017, 10:21:48 AM by Bimat »
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Offline Bimat

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₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #115 on: August 30, 2017, 03:58:40 PM »
If I am not wrong, these figures do not include the old ₹500 and ₹1000 notes held by Nepalese and Bhutanese people (which are not even exchanged yet), so to be very strict, 100% notes came back to RBI.

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 #116 on: August 30, 2017, 05:16:50 PM »
Demonetization exercise explained in two sentences:

Demonetization was carried out because people were corrupt. Demonetization failed because people are corrupt.  :-\

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 #117 on: September 01, 2017, 10:29:51 AM »
Confirmed: The returned amount mentioned in RBI's annual report (₹15.28 Trillion) does NOT include: Demonetized currency held by Nepalese nationals even today (expected to be around ~ ₹5000 crores) and amount deposited in old currency in district co-operative banks during first four days of demonetization (which is around ₹8000-₹10000 Crores). So effectively 100% money came back. Government was expecting a windfall gain of ₹3 - ₹4 Trillion when demonetization was annouced!

RBI report talks only about non returned ₹1000 notes but no word about non returned ₹500 notes. Probably all the ₹500 notes came back (or even more than what RBI had issued!)

RBI is expected to finalize a plan with Central Bank of Nepal to collect old Indian currency with them.

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

Offline Figleaf

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Re: ₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #118 on: September 01, 2017, 10:48:35 AM »
It's fine (and fun) to criticise the government and it's quite correct to identify corruption as the core problem and an important break on India's economic development.

Now, apart from the botched exchange operation - itself a consequence of secrecy out of fear of corruption - while you are enjoying your delightful freedom to speak out unafraid of the government, can you come up with a better way to fight corruption?

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Offline Bimat

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₹500 and ₹1000 Banknotes are No More Legal Tender
« Reply #119 on: September 01, 2017, 11:21:44 AM »
I'm not against any measure against corruption, however several loopholes were kept in this Demonetization exercise which ultimately helped black money hoarders. Political parties were allowed to deposit any amount of money they had in cash, no questions were asked to them, nor was any tax charged for it. So if someone has good relation with a big political leader, he could get hie money returned (white!) easily, with some part of that money paid to that party as party fund. And this happened. Demonetization rather helped people to convert black into white.

Government now says main aim of demonetization was to digitize the economy...That's a good intention but where in the world you see demonetization happening just because you want to digitize it? RBI report also says that the cash in circulation today is now almost back to November 2016 level before demonetization and use of digital payments has also thus decreased. People opted for digital payments because there was no other option. They were forced to do it. It's also a daydream to expect a cashless society where half of the Indian population (which is not small) earns less than a dollar a day. It's a rude thought.

India's GDP today stands at 5.7% (numbers released yesterday). This is when crude oil is at ~$50. We import 95%+ oil that we need. It was 7.9% in July 2016. 2% decrease in GDP means loss of ~ ₹3 Trillion with millions of jobs lost. It's a fact that millions of jobs were lost in informal sector after demonetization. Visit any industry which heavily depends on cash. It's destroyed today. Bank NPAs have increased as companies are unable to repay the loans. Now imagine oil at $100 (which is not going to happen any time soon, fortunately) and we are doomed!

In recent budget, government introduced electoral bonds, saying that it will bring transparency in political funding. They however allowed anonymous purchase of these bonds, making it futile. BJP, the ruling party, received around ₹8000 million in political donations last year which have no source i.e. without any PAN or Aadhar number (the Indian equivalent of social security number).

I therefore believe that no political party in India is serious to tackle corruption. Only talks but no action!

Aditya
« Last Edit: September 01, 2017, 11:31:57 AM by Bimat »
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.