I normally never keep much cash with me , since I pay all my grocery shopping and other major expenses through card ...So, having rs 1000 or Rs 500 suits me fine since I can manage the vegetables, fish and other expenses with that for a few days with that ..

That is exactly the point. The value of Rs. 500 is a pittance or a fortune has to be taken into consideration.

rambabu wrote:

Exactly Kalyani. The topic is only about the value of Rs. 500.

 

Does that mean a 500 rupee note has no value if I have to go to a restaraunt and pay trough my card? 500 is 500 you spend it on any thing. I get my car filled with 500 nd that is enough for me for 5 days.

Rs 500 is a big amount for me and I will spend it carefully, if it is the money earned by my own hard work. Otherwise,… again it is a big amount but I will spend it without thinking about its value. 

It depends on the place. In a five star it has no value but in a udipi hotel it will buy a lot.

And in a wayside Push cart eatery, it can buy a food that lasts for 3 days.

If you have lunch with our politicians at Parliament house you can really stretch your 500 rupees to almost a week..

The value of Rs. 500 is pittance in Mumbai. The same Rs. 500 in Rajnandgaon fetches foods worth Rs. 1000. Value varies from place to place.

But 500 rs are now much more in use indicating that the overall prices have gone up.

Despite the fact that 500 rupee are much more in use, this denomination retained its purchasing power in remote villages. In a nutshell, the value changes from place to place. Additionally, even if the person lives in a remote village with more spending habits like drinking,and buying things for vanity and show, the value of Rs. 500 is considerably will be reduced.