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Strange part about this is that they are going to issue new 500 and 2000 notes as per > 8:32 pm: A new series of Rs. 500 currency notes and Rs. 2000 currency no
by hyperion2010 10y ago
Strange part about this is that they are going to issue new 500 and 2000 notes as per
> 8:32 pm: A new series of Rs. 500 currency notes and Rs. 2000 currency notes will be brought into circulation.
Pulling current notes I can understand, but the problem is that the denomination allows people to move lots of money in a minimal amount of space, so replacing them isn't really solving the problem.
- h43k3r 10y agoIt is. To get new notes, you will have to submit the old notes to the bank. In that case, you will have to declare the money to the Income Tax department. And if the sum is huge, a criminal enquiry will be started by IT department. Also this will at once curb all the fake note issues.
- puddintane 10y agoI wonder how long till the new format is duplicated?
- aub3bhat 10y agoThe duplication is a minor concern the major concern is lost income tax revenue due to an underground cash economy. By restricting numbet of 500 and 2000 notes and forcing owner declare assets it put massive pressure on the black money.
- taherchhabra 10y agoThe big ticket black money is in swiss accounts,real estate and gold.
- pharke 10y agoIsn't this exactly the issue addressed by money laundering? Would this not simply force a large number of people into dealing with organisations or individuals who can convert their existing stockpile of (no longer valuable) cash into a smaller pile of cash that still has buying power? A naive approach would be to 'hire' a large number of people to cash in amounts of notes that would be just under the level considered suspect by promising them a cut of the exchanged money. I'm sure there are existing criminal networks that could achieve such schemes (or better thought out ones) within the window of Nov 10 to Dec 30.
- calvinbhai 10y agoNo one will be willing to do that work. And its difficult to scale such operations. They may convert some small amount (probably upto 50k), but anytihng more than that, it'll be getting tougher
- hypothesist 10y agoThe whole point is to bring out undisclosed money by tax evaders. This way you have two options - you declare all your money and face the income tax department or just let it all become zero value. Brilliant move.
- blevinstein 10y ago500 rupees = $7.52, 1000 rupees = $15.05 These are not large denomination bills.
- bckygldstn 10y agoThey are, however, the largest denomination bills.
- nish1500 10y ago28 of the latter make up an average Indian's monthly income. It's more significant than $100 is for Americans.
- vmarsy 10y agoMeanwhile you only need three 500€ bills to make up for the average European income. (And 500€ is 36651 rupees.) Those 500 and 1000 rupees are the largest denomination bills in India, but you need almost 10 times more of them to make up for the respective average income.
- bonzini 10y agoIn fact, the same is said in Europe about the absolute uselessness of 200 and 500 euro bills. I have only held a 200 euro bill once, and never a 500, but also thanks to the Schengen area it is trivial to (illegally) being insane amounts of money to Switzerland. This is why the EU was pressuring Switzerland to abolish bank secrecy.