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In 2016, Indian government banned all notes of Rs500 & Rs1000 denomination with immediate effect and launched a new note of Rs2000 denomination. Then they found

In 2016, Indian government banned all notes of Rs500 & Rs1000 denomination with immediate effect and launched a new note of Rs2000 denomination. Then they found out that because the new note was larger than earlier notes, and ATMs were not designed to fit the new note. They had to spend weeks to upgrade all the ATM machines to accept new notes where whole county was in lines at the banks to exchange their money. [1] Now they are discontinuing the note of Rs2000 denomination that they launched in 2016. People have till September 30 to exchange Rs2000 denomination notes for other currency. But one person can only exchange Rs. 20,000 at a time. Guess now it's again time to line up in banks. [2] [1] https://www.hindustantimes.com/business-news/new-notes-new-challenge-why-the-atm-chaos-won-t-go-away-soon/story-zYhtynoEMg8h624Sn6U8UI.html https://www.hindustantimes.com/business-news/new-notes-new-c... [2] https://www.ndtv.com/india-news/rs-2-000-notes-to-be-withdrawn-from-circulation-exchange-them-by-september-30-2023-says-rbi-4049268 https://www.ndtv.com/india-news/rs-2-000-notes-to-be-withdra...

unmole 3y ago
> Guess now it's again time to line up in banks. Yeah, no. Unlike with demonetization, 2000 rupee notes still remain legal tender. The timeline for withdrawal is significantly longer and the proportion of cash in circulation that needs to be exchanged is significantly lower. There is no rational reason to queue up at banks now.
- throwaway384629 3y ago
  Thats not how most of the people feel at the ground level. Pharmacies/medical-stores, vegetable shops, petrol stations are already refusing to accept the notes. [1] [2] [3] >> When asked for the reason, a chemist said, "Who will stand in the long line to exchange the notes? We don't want to accept it anymore." This was the reason given by most of the shopkeepers. [1] [1] https://www.indiatoday.in/india/story/rs-2000-note-reality-check-small-shops-vendors-petrol-pumps-uttar-pradesh-up-kolkata-delhi-2382589-2023-05-22 https://www.indiatoday.in/india/story/rs-2000-note-reality-c... [2] https://timesofindia.indiatimes.com/city/bengaluru/day-after-rbi-move-many-shops-refuse-2k-notes/articleshow/100389384.cms?from=mdr https://timesofindia.indiatimes.com/city/bengaluru/day-after... [3] https://www.cnbctv18.com/business/retailers-delivery-agents-hesitant-to-accept-rs-2000-notes-say-reports-16719371.htm https://www.cnbctv18.com/business/retailers-delivery-agents-...
  - SanjayMehta 3y ago
    2000 rupee notes stopped being released by banks over a year ago so these stories are really hard to believe.
    - kshacker 3y ago
      Fed stopped printing money a couple of years back but they are still unable to swoop it back after what is it 18 months of working on it? Sometimes when you overprovision it takes a lot of effort to reverse it.
      - unmole 3y ago
        I'm sorry, do you believe the Fed actually printed excess currency notes? If not, I don't understand why you think your analogy makes any sense in this case.
    - sateesh 3y ago
      That doesn't mean there weren't any 2000 rupee notes in circulation. https://www.deccanherald.com/city/top-bengaluru-stories/big-notes-at-bluru-petrol-pumps-fuel-quarrels-and-panic-1221186.html https://www.deccanherald.com/city/top-bengaluru-stories/big-...
    - throwaway384629 3y ago
      How does it matter if they stopped releasing these notes a year ago? Do the notes that they released earlier disappear from pockets of public? On March 31, 2023 the total value of these banknotes in circulation was Rs 3.62 lakh crore constituting 10.8% of all the currency notes in circulation. [1] [1] https://economictimes.indiatimes.com/news/economy/policy/rs-2000-notes-to-be-withdrawn-from-circulation-to-continue-as-legal-tender/articleshow/100360379.cms https://economictimes.indiatimes.com/news/economy/policy/rs-...
      - unmole 3y ago
        > was Rs 3.62 lakh crore constituting 10.8% of all the currency notes in circulation Is the point. Demonetization made ~80% of the currency in circulation no longer legal tender overnight. This phasing out is in no way comparable. Which makes the idea that people will have to queue up at banks unbelievable.
- kshacker 3y ago
  Ever played the game of passing the parcel? Any similarities? ... given that you can deposit only 10 notes in one go, why would I want to be the last one holding the bag?
  - rahul1141 3y ago
    They can depoiste any amount. They can "exhange" 20k. there is the difference. if you have source to explain the money, I guess you can just go and deposit it.
chillbill 3y ago
Indian friends mentioned that that was a tactic to push people towards less usage of cash. This now feels just like that.
- throwaway384629 3y ago
  Yup, move everyone to digital payment system and then add charges on that too. https://www.outlookindia.com/business/should-you-worry-about-new-upi-charges-on-transactions-over-rs-2-000--news-274357 https://www.outlookindia.com/business/should-you-worry-about...

unmole 3y ago

> Guess now it's again time to line up in banks. Yeah, no. Unlike with demonetization, 2000 rupee notes still remain legal tender. The timeline for withdrawal is significantly longer and the proportion of cash in circulation that needs to be exchanged is significantly lower. There is no rational reason to queue up at banks now.

throwaway384629 3y ago
Thats not how most of the people feel at the ground level. Pharmacies/medical-stores, vegetable shops, petrol stations are already refusing to accept the notes. [1] [2] [3] >> When asked for the reason, a chemist said, "Who will stand in the long line to exchange the notes? We don't want to accept it anymore." This was the reason given by most of the shopkeepers. [1] [1] https://www.indiatoday.in/india/story/rs-2000-note-reality-check-small-shops-vendors-petrol-pumps-uttar-pradesh-up-kolkata-delhi-2382589-2023-05-22 https://www.indiatoday.in/india/story/rs-2000-note-reality-c... [2] https://timesofindia.indiatimes.com/city/bengaluru/day-after-rbi-move-many-shops-refuse-2k-notes/articleshow/100389384.cms?from=mdr https://timesofindia.indiatimes.com/city/bengaluru/day-after... [3] https://www.cnbctv18.com/business/retailers-delivery-agents-hesitant-to-accept-rs-2000-notes-say-reports-16719371.htm https://www.cnbctv18.com/business/retailers-delivery-agents-...
- SanjayMehta 3y ago
  2000 rupee notes stopped being released by banks over a year ago so these stories are really hard to believe.
  - kshacker 3y ago
    Fed stopped printing money a couple of years back but they are still unable to swoop it back after what is it 18 months of working on it? Sometimes when you overprovision it takes a lot of effort to reverse it.
    - unmole 3y ago
      I'm sorry, do you believe the Fed actually printed excess currency notes? If not, I don't understand why you think your analogy makes any sense in this case.
  - sateesh 3y ago
    That doesn't mean there weren't any 2000 rupee notes in circulation. https://www.deccanherald.com/city/top-bengaluru-stories/big-notes-at-bluru-petrol-pumps-fuel-quarrels-and-panic-1221186.html https://www.deccanherald.com/city/top-bengaluru-stories/big-...
  - throwaway384629 3y ago
    How does it matter if they stopped releasing these notes a year ago? Do the notes that they released earlier disappear from pockets of public? On March 31, 2023 the total value of these banknotes in circulation was Rs 3.62 lakh crore constituting 10.8% of all the currency notes in circulation. [1] [1] https://economictimes.indiatimes.com/news/economy/policy/rs-2000-notes-to-be-withdrawn-from-circulation-to-continue-as-legal-tender/articleshow/100360379.cms https://economictimes.indiatimes.com/news/economy/policy/rs-...
    - unmole 3y ago
      > was Rs 3.62 lakh crore constituting 10.8% of all the currency notes in circulation Is the point. Demonetization made ~80% of the currency in circulation no longer legal tender overnight. This phasing out is in no way comparable. Which makes the idea that people will have to queue up at banks unbelievable.
kshacker 3y ago
Ever played the game of passing the parcel? Any similarities? ... given that you can deposit only 10 notes in one go, why would I want to be the last one holding the bag?
- rahul1141 3y ago
  They can depoiste any amount. They can "exhange" 20k. there is the difference. if you have source to explain the money, I guess you can just go and deposit it.

chillbill 3y ago

Indian friends mentioned that that was a tactic to push people towards less usage of cash. This now feels just like that.

throwaway384629 3y ago
Yup, move everyone to digital payment system and then add charges on that too. https://www.outlookindia.com/business/should-you-worry-about-new-upi-charges-on-transactions-over-rs-2-000--news-274357 https://www.outlookindia.com/business/should-you-worry-about...