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Demonetisation: Will it lead to a corruption free India?

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Dear Mrs Raji Ram,

Agreed with your post. It may not be possible to stop generation of black money by one simple stroke. But there must be a beginning some where. Demonitisation is a small but bold step in that direction. More that 85per cent of the population, who are honest wage earners suffer because of this corrupt minority of 15 percent who make unaccounted wealth by using their power and position. To eradicate this disease, continuous and relentless efforts are required.
Warm regards,
Brahmanyan
Bangalore.
 
I am back with my story on money exchange in bank.

After a market survey of six banks in my residential colony, Discoverd, Private bans indusind, icici open upto 9pm

Nationalised fold up by 5 pm on weekdays, saturday and sunday only upto 1.30 pm.

Axis bank honoured senior citizen by offering them seats in lounge and offer to help.

A nationalised bank opposite offered the best way to change.

Around closing time when crowd almost melts away, they offer tokens for priority service next morning. I joined the queue at 4.35 pm for half an hour and collected two

tokens - one for myself and another for my relative. The next morning went at 9,15 on priority token ane entered within five minutes. Took an hour to deposit 20K plus in

two accounts and withdrew two units of 10k. So success until next month.I do not have any old cash noe. New cash 14 K of 2000 and 6k of 100rs is good enough.

Collateral damage, picked up an infection due to jostling in crowd and ended up in bed for two days .lol
 
Hey Krish Sir,
Please don't bother yourself much. The withdrawal and exchange limits stand increased and new 500 denomination had also being supplied now. The situation is going to improve in a couple of days...
 
My cousin is the smartest guy! He has an account in a bank in Anna Salai, which is not a residential area.

Only a few persons without account in the bank were standing in a queue; he was welcomed and given new currency!

:nono: Q! :thumb:
 
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prasad1 said:
  • It will cause great inconvenience to common man who will start running to bank to exchange Rs.500 and Rs.1000 notes.
  • By replacing all the Rs.500 and Rs.1000 denomination notes, as ordered by the government, could cost the RBI at least Rs.12000 crore.
  • It will be very difficult for half of the population who are not well versed with the card transactions.
  • The major problem is that big fishes will be left out whose black money is in the form of foreign currency, gold and property and stashed in tax havens.
Click to expand...

If 14.0 lac crores of higher denomination is in circulation & actually only 10 lac crores get deposited then then the rest is windfall gains to RBI...So 12000 crore spent in replacement is just 3% of total gain of Rs 4 lac crores...A small price
 
The demonetisation drive has taken a huge toll on the tourism sector, especially hotels, restaurants and cabs which depend heavily on the winter months to cater to tourists coming from different parts of the country. Many tourists have now changed their plans due to the shortage of currency.

According to sources, while room bookings have had a few cancellations, the effect on food and beverages business as well as cabs has been severe. Restaurant owners complained that business has dropped by nearly 25% as people are facing problems with paying lower denominations to avail the services. Similarly, cab operators expressed concern due to dwindling number of visitors availing their services to visit the Agency area and also for visits within the city.
"Right now the business has dropped drastically for cabs in the city. Petrol bunks are accepting Rs 500 and Rs 1,000 notes so we are able to fill up the fuel for the cars. But, bookings have reduced by 90% during the weekend, when actually there is a lot of rush. We organise Vizag tours and Araku tours and on normal weekends, we get at least 10 orders, but now it is just one or two orders," said proprietor of Crazy Cabs, Rajendra Prasad.

Speaking to TOI, manager of Hotel Daspalla, Prashanth S said, "There has been at least 25% drop in food and beverages business as people don't have sufficient cash with them. Also, not everybody who comes to the restaurant are having debit or credit cards even though we have the facility."



"So many people are not coming only due to this cash crunch. There is a shortage of Rs 100 notes and I don't have change to give also. We are wondering how to manage this. I don't have sufficient money and there are too much queues at banks. If I ask for Rs 10,000, then they are giving Rs 2,000 notes, which is useless. There are lots of problems in the future, if this doesn't get sorted out soon. We are depending on December as large number of tourists come here. If tourists don't come then not only us the entire chain will face a lot of financial problems," observed Sunith Kumar Panja, proprietor of Nimantran, which serves Bengali cuisine near the railway station.
http://timesofindia.indiatimes.com/city/visakhapatnam/demonetisation-drive-hits-tourism/articleshow/55405451.cms


I suppose for the people sitting in well to do homes, these hardships are part of life, but for others it is pain.
 
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New currency will affect hawala and terror financing briefly: Experts

It could be difficult to replicate the new currency but money transfers will still continue.

“The noose has definitely tightened, but only time can tell what methods the criminals will come up with to overcome the hurdle that has been created for them,” added Sivanandan.

Ajai Sahni, executive director of the Institute for Conflict Management, echoed similar views. “This will be a temporary impediment for those operating illegal hawala channels. But when it comes to terrorism, it is only a matter of time that Pakistan’s ISI will figure out the technology, and replace the current minting press to start flooding the market again.”

Sahni was of the opinion that it is an ideal start, but to curtail terror financing, the government needs to take focused measures to eradicate it, and it is a situation that is very much possible.

PS Pascricha, former Maharashtra director-general of police, said, “The non-circulation of Rs500 and Rs1000 rupee denominations will essentially thwart the hawala operators who will dread to deal in 100 and 50 rupee denominations. But one will have to wait and watch the methods they adopt once the new currency comes into circulation.”

Source: http://www.hindustantimes.com/mumba...fly-experts/story-J9UEBZfLbYPYPj0mZ5O5iO.html


I suppose for the people who tend to sit on a pile of currency, such cleaning exercise of the Government may prove painful but not for an honest and law abiding citizen who may feel proud to be a part of the cleaning exercise.
 
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What our PM has done is just a top of iceberg...More needs to be done by banning Participatory notes in share market, prevent gold smuggling, confiscate benami properties, bringing foreign deposits of Indians in tax net etc
 
[h=3]No ATM charge till December 30[/h]
The Reserve Bank of India has on Monday decided that banks shall waive levy of ATM charges for all transactions, including both financial and non-financial, by savings bank customers done at their own bank ATMs as well as at other banks’ ATMs, irrespective of the number of transactions. This will be effective from November 10 to December 30.
 
[h=3]Truckers demand online payment facility at state borders[/h]
With their cash drying up and vehicles stranded at highways post the demonetisation of old Rs 500 and Rs 1,000 notes, a truckers body today asked the government to facilitate online fund transfers for payments at state borders.
 
[h=3]COD business hit by demonetisation, says Snapdeal[/h]
The recent demonetisation move by the Centre has marginally hit the Cash on Delivery (COD) payment business of e-commerce major Snapdeal, its co-founder Kunal Bahl said today. "There is a short-term dip in the COD business mode. Specifically, discretionary purchases have taken a dip," Bahl told reporters at IIM Calcutta here today.
 
At least 4 months needed to replace demonetised notes, not 50 days: Here’s why

As per data furnished by the Finance Ministry, Rs 17,50,000 crore worth of currency notes were in circulation in October-end, out of which around 84 per cent or Rs 14,50,000 crore is in the now defunct Rs 500 and Rs 1,000 notes.

atm-demonetisation-759.jpg

Fifty days of pain is what Prime Minister Narendra Modi has asked people to endure for his sudden demonetisation move. But going by the rate at which fresh currency is being disbursed, even this time will prove grossly inadequate to set the economy right. As per data furnished by the Finance Ministry, Rs 17,50,000 crore worth of currency notes were in circulation in October-end, out of which around 84 per cent or Rs 14,50,000 crore is in the now defunct Rs 500 and Rs 1,000 notes.


Against this, data furnished late on Sunday by the Finance Ministry said in the first four days — Nov 10 to Nov 13 — Rs 50,000 crore were dispensed to customers — in Rs 100 and Rs 2,000 denominations — either by withdrawal from their accounts or ATMs, or exchanged at bank and post office counters.

This, in 18 crore transactions, which has already made the banking system burst at its seams. In fact, on most days so far, and in most bank branches and ATMs, the money is getting exhausted even before the serpentine queues close in. This does not go well with assurances given by the Reserve Bank of India (RBI) that it has enough currency to replenish banks for their disbursals. This, also after RBI printing presses are said to have started printing the new currencies several days ago, to create a good buffer.

Accordingly, even if we assume that the full amount of Rs 12,500 crore is being disbursed in Rs 2,000 denomination on a daily basis, it will take 116 days to replenish the financial system with what has been declared illegal. This also assumes that the total amount of currency declared illegal would be replaced with new notes.


It is not without reason a strong warning against demonetisation by the direct tax administration just four years ago, on what ill-effects it can bring and how futile the exercise can be — all of which is waiting to play out in full bloom today.

“One common demand from the public is that high denomination currency notes particularly Rs 1,000 and Rs 500 should be demonetised,” said the report authored by the chairman of the Central Board of Direct Taxes in 2012, titled: “Measures to Tackle Black Money in India and Abroad.”
“In this connection, it is observed that demonetisation may not be a solution for tackling black money or economy, which is largely held in the form of benami properties, bullion and jewellery,” said the 109-page report.
Further, it said, such a step will raise costs, as more currency notes will have to be printed, cause an adverse impact on the banking system, mainly on logistics issues, make transportation of cash difficult, inconvenience the public and play havoc with disbursal of wages.
“Demonetisation undertaken twice in the past — 1946 and 1978 — miserably failed, with less than 15 per cent of high currency notes being exchanged, while more than 85 per cent of the currency notes never surfaced, as the owners suspected penal action by government agencies.”
http://indianexpress.com/article/bu...tion-banks-atms-modi-finance-ministry4375205/

I guess people in this site are too young to remember those days. Demonetization is not the magic bullet to kill corruption.
 
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Why I can’t face my vegetable vendor this week


As I walk past his cycle-cart, trying my best to avoid eye contact, Rajkumar has no idea that his business, or at least his customers, has gone online one fine morning.I can’t face Rajkumar anymore. He has been servicing our locality for many years now, setting up a small stall of fresh vegetables on the pavement every morning. This weekend, I won’t be walking up to him for my weekly quota of vegetables. We got them online yesterday, as we didn’t want to tell the world that we have just Rs 400 left at home in cash. That is if we don’t plunder out five-year-old’s piggy bank.

As I walk past his cycle-cart, trying my best to avoid eye contact, Rajkumar has no idea that his business, or at least his customers, has gone online one fine morning. My middle class locality in East Delhi can afford to shift to e-commerce to tide over the cash crunch. For Rajkumar, the closest he comes to e-commerce is when someone orders vegetables on his mobile phone and he asks his teenage son to deliver it to their doorstep. His concept of cashless transaction is when a regular customer ask him to pack a list of veggies which he will keep ready by the time the person returns from the grocer or barber shop. He might even attempt an overnight credit. Rajkumar can’t afford anything more.

This week, I can’t afford to be Rajkumar’s customer, neither can most of his regular customers, usually a bunch of salaried employees or former salaried employees with a single source of income that usually sticks to a similar size and frequency. They usually keep credit cards for contingencies, not cash. They can’t afford to buy homes in Delhi, because they can’t pay even a small percentage of that amount in cash. So they prefer pre-bookings in the Capital’s wild east or south, hoping that the houses will be their at least by the time their kids get married. Most of them can’t afford to pay anything other than weekly staples and maybe a monthly indulgence in clothes by cash. They would rather swipe their cards, and silently convert them to EMIs so that no one knows they are buying things for which they don’t really have the liquidity.

If they have learnt one thing in the past week is that cash is really overrated. You can well do without cash these days, at least a lot of us can. We don’t get paid in cash and don’t really need to pay in cash most of the times. But then India doesn’t work like that. Cash is still the go-to way for most Indians to transact. They have never known a better way. Even those with card tucked away inside mothball filled steel almirahs are now trying to remember their PINs. They would still want to go back to cash, once they get hold of some. Hope they do. Otherwise, what happens to Rajkumar?
http://indianexpress.com/article/bl...t-face-my-vegetable-vendor-this-week-4374832/


Then again who cares what happens to others.
 
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Dear Prasad Sir,

People like Rajkumar are the most affected. Look at this news in Sing. Chennai:

''Hardly a week after the central government announced that Rs 500 and Rs 1,000 notes would not be legal tender on

November 9, the wholesale goods market in this area of Chennai has seen a drastic fall in sales, especially in flowers.

The cash squeeze caused by Prime Minister Narendra Modi’s announcement on Tuesday has made it very difficult for

flower sellers to provide change for higher denomination notes, losing customers in the process. As a result, the dustbin

in the market compound is filled to the brim with wilted flowers. There are also piles of cast-away flowers in piles by

the footpath. Nearly 360 tonnes of wilted flowers – roses, lilies, asters and jasmine, among them – were dumped in

Koyambedu in the past week.''

Source: In one Chennai market ,,,,
 
BTW I dont get it...by having new Rs 2000 notes...black money will still continue that is no one would store cash...they would but USD or Gold or save it overseas.

BTW I cant imagine a life without cash transaction.

I only deal cash. Those who run own practices/business have daily cash transaction.

I feel all credit cards and internet banking is forcing humans to undergo stress of keeping up with times.

Some of us would like to revert to an easier lifestyle where once upon a time nothing was too automated..yet we lived..I remember working hours were shorter..no one worked like a dog and yet the world ran fine.

So why force us to embrace cashless system?
 

When changes are indispensable…one should try to learn and move on along with the tides…

There is no use in grumbling in this Forum..(mostly bragging and occasionally grumbling)

Those who grumble here cannot become a PM

And those who become PM cannot satisfy every citizen

And for those for whom money, I mean cash, is the entire world, better to co-operate instead of grumbling

When the environment changes, we need to adjust..

When the monsoon failed, do we not go for crops requiring less water...??

Fight against Black Money is a mission .. a long due.... to clean up the 70 years of looting..

One is free to sound hue and cry..

Let us try to be more optimistic..

It is time to stop fuming and fretting and time to start get on with the life..

Better to go for the alternative... teach others too..

Here is another alternative....

Digital wallets cash in on demonetisation

As currency disappears, people are turning to online options, doubling downloads of payment apps. And kirana stores and investors alike now want to tie up with digital wallet startups


BENGALURU: When the management at payment service provider PayU discussed sales targets last month, the mood was somber. The sales executives needed to be more aggressive, felt PayU managing director Jitendra Gupta, who had just joined the firm following PayU's acquisition of his venture Citrus Pay. The latest sales meeting, which took place last week, was very different though. "We were all smiling. I told the team, look, your sales targets have been completed by the Prime Minister himself," Gupta says.

The mood's the same at Gurgaon-based mobile wallet company MobiKwik. Founder and director Upasana Taku hasn't slept a wink in the last two days. "A lot is happening at the office. It's exciting, but many things need to be taken care of now. My one-year-old thinks I have forgotten him completely," she says.

The government's move to withdraw Rs 500 and Rs 1,000 notes has come as a bonanza for the digital payment solutions startups, which after a period of dramatic growth had begun to see growth rates slow down. With no cash to pay, millions of people who felt cash was safer than digital transactions, or who simply had not thought that digital worth their while, are now downloading payment apps and refilling their digital wallets.

Read more at: http://timesofindia.indiatimes.com/...ments-demonetisation/articleshow/55388855.cms
 
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Govt Telling people how to live and talking of poor people being urged to use plastic cards and technology shows the mind of a foolhardy political class and woolly headed

dumb bureaucracy.Lives of poor people have been crushed. Vegetable vendors,flower sellers masons ,electricians,plumbers and all belonging to working class are out of

work. One fellow from bihar with no ID [he says his cards are home in bihar]was waving one five hundred which no one is willing to change without 20% commission which

he cannot afford. Many contractors are getting some work done by labour promising money after ten days.It is sad life has been reduced to this .
 
A good Government cannot allow the poor to struggle in poverty all throughout his life.

Poor section of the country have heard enough preaching of such dull head and dunce.

They have now elected a PM who acts with guts

The Government has now come forward with certain bold schemes

Such schemes may cause hardship initially which may be temporary

These will be addressed and resolved.

Medicine tastes always bitter

What matters is that one should understand, realize that it is a medicine….

It is a bold action taken against the dishonest for and on behalf of the poor.

 
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A decision has been taken and there should be no looking back at this stage. Let us all cooperate with the Government so that the implementation is smooth. There is a clear assurance from the government's part that the genuine citizens won't face any problems in converting their hard earned money. So the general public needs to undedrstanding the government stand and extend their cooperation in this. After all nothing big could be achieved without minor pains.
 
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