India withdraws 500 and 1000 denomination

[Brahmanyan]

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There is no need for this panicky reaction. Initially banks are permitted to pay cash of Rs.10,000/= a day and Rs.20,000/= a week over the counter against withdrawal instuments ( self chuque or w.slips). This limit will be increased later on when the banks get more currency notes. Apart from this we can withdraw Rs.2,000/= per day through ATM . This is increased to Rs.4,000/= from 19th November 2016.
Any drastic change in fiscal discipline will cause initially some difficulty.
We should appreciate the aim is to curb circulation of huge amounts of black money harming the economy of our Country.
Let us cooperate with the Government in its efforts in this direction.
Brahmanyan
Bangalore.

 

[prasad1]

It is a burden for poor and middle class people. Like Rajiji was saying about her maid servants. People in India still do business in cash, bank accounts are not universal.
Even in USA, there is lot of cash business. Check cashing without bank account is generally costs 2% fee.
Then the slowness of banks, and the limitations imposed by the system is an added burden.
I agree that the idea may be good but implementation could have been better.

Sadly in India, individuals time and suffering is of little consequence to others.

 

[Raji Ram]

Dear Brahmanyan Sir,

We have to support the govt. to destroy black money but the sufferers in the initial stages are the middle class and the poor.

This situation reminds me of 'Water water everywhere but not a drop to drink'! Those who conducted weddings and needed

hospitalization were the worst hit. Here some medical shops accept 500 rupee notes from regular customers but force them to

buy for nearly 400.
Our sAsthrigaL told us that he is forced to accept OHD notes from his clients because his fee is in multiples of ten thousand! opcorn:

 

[krish44]

Politics [election funding], real estate , bullion [jewellers] merchants, construction contractors[small and big] deal in black money.

Instead of going after them directly, this conversion to new currency. But 500 re notes are used by the poor . Many specially rural have no ID or bank accounts.

One does not find a single well off person belonging to classes mentioned standing in long queue in any bank or post office.

It is estimated that 6 trillion rupees is the size of black money is in india. Out of which not more than 2.5 trillion will return to banking system, the balance goes to hawala

traders for changing.

This kind of money returning to banking system will reduce their liquidity issues and further reduce the deposit rates for all us.

RBI will sit pretty and can even make rupee stronger and it can reduce it to low of fiftees. To avoid that it may sell its chest of foreign exchange. It may give higher

dividends to govt and have more reserves. Govt might tempted to get hold of RBI reserves to fill its coffers.Some law amendments could be made for this.

Buy bank shares for making a quick buck -atleast 10% in a week.Prefer nationalised banks like SBI.

This is partly based on Lata venkatesh column on The mint today

 

[vgane]

I think the initial reaction is panic...Our PM Modi lost 3 lakh Twitter followers on Day 1...A trickle compared to his follower base of over 2.4 crores...Impact is just 1.2%...I guess as the full ramifications of this momentous decision is felt by the masses, his followers would only go up!!

 

[krish44]

I doubt that following of Namo will go up.

No one likes personal life -whether rich or poor to be disrupted or disturbed.

Poor and middle class [fixed income earners] have nothing much to do with black money.

To subject them to punishment showing inability to go after the real culprits is poor politics.

All opposition is shouting that it is aimed at election states of UP and punjab.They say BJP has already tipped of its financiers and collected their funding and

opposition

money is being crippled. Most parties collect money in blocks of rs 20000 in cash to avoid accountability and make it anonymous.Unless there is transparency in money

collection , it is difficult to reduce black money. Also large amounts are spent in bribing voters which cannot be accounted anywhere. A southern disease, it has now

spread all over india.We require more

persons like J P Narayan a social activist who has been trying to bring changes in funding

 

[krish44]

Some benefits of govt move is kashmir agitation is feeling the pinch. The pro pak elements have been using indian currency got thru hawala channels which is freezed now.

Terrorist money funded either thru fake and real 500 notes ,though a small % of black money might dry up for sometime.

Housing in luxury segments might reduce by 25-30 % . The woes of builders might increase and some end buyers might rejoice .But all real estate deals would be under

scanner. Most would not think of booking flats for sometime It is normally the honest who get scrutinised more.lol

Women buying gold need to be more careful and protect themselves from husbands offering to buy them gold ornaments . One might end up with fake or predated

receipts

or no receipts.lol

 

[biswa]

An article in the paper here has quoted rbi on this:

option 1 - go to the branch of the bank in your nearest place and deposit in your NRO account. If you do not have one, you can open it.

option 2 - you can travel to india and get it converted in banks until dec 30th

option 3 - if you are unable to do 1 or 2, then whenever you go to india next year, you can convert it at any of the branches of the rbi

I am not sure how option 1 would work. Are there branches of Indian banks in the US? And will they accept INR? The SBI branch in California says they will not accept INR.

 

[biswa]

But Prasadji, cash is not going away, right? New notes will be issued. It is only inconvenience for a few days.

It is a burden for poor and middle class people. Like Rajiji was saying about her maid servants. People in India still do business in cash, bank accounts are not universal.
Even in USA, there is lot of cash business. Check cashing without bank account is generally costs 2% fee.
Then the slowness of banks, and the limitations imposed by the system is an added burden.
I agree that the idea may be good but implementation could have been better.

Sadly in India, individuals time and suffering is of little consequence to others.

 

[GANESH65]

One interesting news has come from Delhi. Daily wage workers, Rikshaw pullers etc have become renderd with no work as the business in almost all major markets have come to a halt. They are now employed by the money lenders to stay in queue for exchange of money with their own or other identity papers to get money exchanged for them..at a daily wayages of Rs. 500 per day. an innovative way to find new employement!! LOL

 

[GANESH65]

[FONT=&quot]The State Bank of India on Friday said it has received deposits worth Rs 53,000 crore after the government scrapped Rs 500/1,000 notes and has exchanged currency worth about Rs 1,500 crore so far.[/FONT]

[FONT=&quot]"The bank got deposits of Rs 31,000 crore yesterday... Today, till now, the amount of deposit is Rs 22,000 crore ...The business is going well of demonetisation. We have additional counters," SBI Chairperson Arundhati Bhattacharya said while announcing its quarterly result on Friday.[/FONT]

[FONT=&quot]SBI had on Thursday replaced about Rs 750 crore worth of notes with the junked ones, while till mid-day on Friday it had exchanged currency amounting to Rs 723 crore.[/FONT]
[FONT=&quot]
[/FONT]

[FONT=&quot]The bank has been able to press into service only about half of its ATM network nationwide.[/FONT]

[FONT=&quot]"We have also been able to put up 29,000 ATMs and Cash Deposit Machines today. Of these, 21,000 ATMs and rest are CDMs," she said.[/FONT]

[FONT=&quot]People across the country thronged to branches and ATMs across the country to replace their old high value currencies as Prime Minister Narendra Modi on Tuesday night announced withdrawal of 500 and 1,000 rupee notes from circulation in a bid to flush out black money.[/FONT]

[FONT=&quot]Only a maximum of Rs 4,000 per person in cash irrespective of the size of tender was being given per person after submission of valid identity proof. Anything over and above this value was credited to bank account.[/FONT]

[FONT=&quot]Banks set up additional counters to change cash as also allow withdrawal from bank accounts through cheque or withdrawal slips with a ceiling of Rs 10,000 in a day within an overall limit of Rs 20,000 in a week (including withdrawals from ATMs) for the first fortnight i.e. up to November 24.


http://www.business-standard.com/ar...ore-deposits-till-mid-day-116111100972_1.html[/FONT]

 

[krish44]

After observing the queue in opposite nationalised bank , I evolved a strategy.

Normally they close dispensing money by 5 pm and then give tokens for next day for a certain number of left over people.

I joined the queue at 4.35 pm and left by 5 15 collecting the token.

I have a good token number 15. So I can go by 9.15 am and pick up the money.

This method reduced my waiting time to less than an hour.lol


A funny incident - some ladies were behind me. One was vociferous.The policeman at the gate was adamant to not let her in.

When She tried forcing entry, the policeman touched her hand to prevent her.


That started a hue and cry.The policeman was pitted against five women who joined the old lady in accusing the policeman of molesting her.

The bank manager came rushing to pacify and took the lady inside.


She let go and cursed all men there inside.

None could do a thing about it.

Thats how delhi has changed.

I saw woman power in action.

My day was made.

 

[tbs]

hi

just curious....why this note Rs 2000/-?.....any way after six months...these notes will be worthless soon....any way

wait for some more economical surgical attack...lets wait and see...many NRIs have a lot of these 5000 /1000 notes..

they can't exchange/deposit within stipulated time.....luckly im now in india...i exchanged all my notes

before this notice/action....i got all 50s/100s as soon as i landed in india....

 

[Raji Ram]

....... They are now employed by the money lenders to stay in queue for exchange of money with their own or other identity papers to get money exchanged for them..at a daily wayages of Rs. 500 per day. an innovative way to find new employement!!

When one door closes, another opens!! :thumb:

 

[Raji Ram]

It is a long time since I saw a 50 rupee note in shops. Only 10 rupee notes, of course many of them dirty, were in circulation.

Once I got 160 rupees in tens! And, yesterday Ram brought 80 brand new 50 rupee notes.

 

[V.Balasubramani]

Now deadline extended….

Till Monday end, you can use old currency to pay utility bills and essential services

The deadline has been extended to November 14th

With lakhs of people in the country struggling to exchange their old Rs 500 and Rs 1,000 notes for new currency, the government has announced that the old notes can be used to pay utility bills like electricity and water for another 72 hours, ending Monday. The government has also extended the deadline for all others services that were exempted previously including govt hospitals, pharmacueticals, railway, air booking, milk booths and co-operative stores.

Earlier, the government had said that people can use old notes to pay these two utility bills till November 11 midnight, but that deadline has been extended now.

Read more at: http://www.thenewsminute.com/articl...ay-utility-bills-and-essential-services-52762

 

[renuka]

BTW did Modi get the Idea to ban Rs 500 and Rs 1000 notes from the movie Picchaikaran?

Check out this scene!LOL

[video=youtube_share;srpXhMKRebU]https://youtu.be/srpXhMKRebU[/video]

 

[GANESH65]

BTW did Modi get the Idea to ban Rs 500 and Rs 1000 notes from the movie Picchaikaran?

Check out this scene!LOL

[video=youtube_share;srpXhMKRebU]https://youtu.be/srpXhMKRebU[/video]

Neither "pichaikaran" Nor Sundar pichaikaran has any role here It is this gentleman who has done all the trick....go through this

Meet The Man Who Suggested The Ban Of ₹500/1000 Notes To PM Modi http://tz.ucweb.com/11_o4an

 

[Janaki Jambunathan]

Secret cash now a hot potato for wives

CHENNAI: For the past two days, homemaker Nancy George* has been pestering her husband to put her on the next flight to Thiruvananthapuram

http://timesofindia.indiatimes.com/...hot-potato-for-wives/articleshow/55381380.cms

 

[GANESH65]

This one I got through WhatsApp. Inspirational...
*Very Interesting Article*

Would it surprise you to know Sweden is almost totally cashless? And the reason is related to ABBA?

Björn Ulvaeus made his fortune as one of the four members of ABBA, but he’s now making history all over again by leading the cashless revolution.

It began after Björn’s son’s Stockholm apartment was burgled twice in 2008. As Björn remembers, “There was such a feeling of insecurity. It made me think: What would happen if this was a cashless society, and the robbers couldn’t sell what they stole?”

He began writing blogs and articles on how the entire criminal economy depended on untraceable cash. If there was a digital record of every transaction, robberies, fraud and financial crimes would end.

Then, in 2011, Björn stopped using cash altogether (and he hasn’t touched it for the five years since).

When he opened the ABBA Museum two years later, it didn’t accept cash, and he put this message outside the entrance:

“I challenge anyone to come up with reasons to keep cash that outweigh the enormous benefits of getting rid of it. Imagine the worldwide suffering because of crime, from drug dealing to bicycle theft. Crime that requires cash. The Swedish krona is a small currency, used only in Sweden. This is the ideal place to start the biggest crime-preventing scheme ever. We could and should be the first cashless society in the world.—Björn Ulvaeus”

Amazingly, people started to notice. More switched to cards and digital payments. The Swedish banks created a cashless app, ‘Swish’, and Swedes began Swishing.

Today, just 3 years later, Sweden’s cashless revolution is almost complete. Bills and coins make up only 2% of Sweden’s economy. Only 20% of all consumer payments in Sweden this year will be in cash, compared to 75% in the rest of the world.

The result? Crime is down. Bank robberies are down 70%. Muggings and burglaries have also plummeted.

Sweden was the first European country to print a paper currency in 1661, and it’s likely to be the first country where paper and coin currencies will disappear altogether. Other countries will follow, with Norway and Denmark also down to just 6% cash transactions.

Including the star of a ’70’s pop band, who is spearheading the cashless revolution after making his money singing “Money, money, money…”

Björn started his movement by 'being the change'. (Just not the change in his pocket !!!).

 

[mkrishna100]

hi

just curious....why this note Rs 2000/-?.....any way after six months...these notes will be worthless soon....any way

wait for some more economical surgical attack...lets wait and see...many NRIs have a lot of these 5000 /1000 notes..

they can't exchange/deposit within stipulated time.....luckly im now in india...i exchanged all my notes

before this notice/action....i got all 50s/100s as soon as i landed in india....

1) I think best is they must make arrangements to pass it on to some close relatives in India to be exchanged ( provided the amount is not too much )
2) They can try to exchange at Overseas SBI Branches if they accept the same .

 

[Raji Ram]

This year, I gave 'Vishu kaineettam' in 500 rupee notes to my son's family because a few months back, there was a rumour that

1000 rupee notes will soon be invalid currency! Luckily they will arrive in Sing. Chennai in December, on a short vacation.

 

[GANESH65]

 

[vgane]

 

[vgane]

I was trying to withdraw some money at Gurgaon yesterday but in vain..Today I decided to take the risk of standing in queue...It was ICICI Bank counter..,.I filled up a self cheque...There were 3 queues-one for women, another for those with old Rs 500/Rs 1000 cash for conversion ....The third one was for self cheque...The 3rd one was short & moved pretty fast..When my turn came I rushed to the counter and presented the cheque...One can withdraw max of Rs 10000 in a day at the counter...They presented me with crisp Rs 2000-4 notes and balance Rs 100 notes..It was pretty smooth affair...Those with non ICICI Bank account had the toughest time..I guess it would take atleast 2 hours to collect the money or deposit the old notes...But No one was grumbling