Ban on Rs 500 and Rs 1000 notes

Arunima Singh wrote:

Kalyani Nandurkar wrote:

It is a welcome move and this decision is being applauded and welcomed by all the leading economists in the country going by the large-scale debates that we can see on various channels. Even the small time industrialists, traders and farmers whose daily business transactions are done in cash are seen welcoming the move. Of course, it will indeed create trouble for common people due to the shortage of small currencies but I expect it will only be a short term effect and by December or January, once the new currency notes are well in circulation, there won't be any problem. This is a welcome move and I wonder if the timing to do so now has been influenced by UP elections in 2017 and to bring down certain political strongmen who cannot be touched otherwise? Just a thought.....

Definitely a smart move and also correct political timing..UP and Punjab election. Definitely he could sense the misuse of black money. Big impact on those strong men for sure

I don't think the Ban is implemented keeping an eye on the upcoming elections in UP and Punjab. In totality, the ban applies to all those Black money holders in the entire Country.

Every political action is with an eye on the votes. Nothing wrong in it. That is the way politics moves.

This is the best plan for national security. Not to forget this black money is a big aid to terrorism across the border.

Absolutely, lthe hawala money trail used by the terrorists will now be stopped until they think of some new way of doing it..

I do have my concerns over this move. I would be glad if someone throws light 

1. What about people who donot have bank account and heavily depend upon the stash of 500 or 1000 notes like say, maids,gardeners,farmers , elderly people etc

2.People fell deaf ears when there was a chance to adapt to credit/debit card transactions, Many petrol bunks and other restaurants always say excuses such as " the swipe system is not working"

3. the transport people such as autowalas will be rebelling this move?

4. If in course of time, will the prices of commodities come down? will taxes like swach bharat tax and krishi kalyan cess be eliminated? What would Government do with the undisclosed income (if they happen to claim all the black money with this move?)

I see that these sudden measures bring much panic to the common man!

Babu saroj wrote:

I felt the decision is made in a very short time without any proper plan yeah the plan is very effective in knowing the black money but this should be done with proper planning.

This decision was not made overnight!! Just think about it! 

Every nook and corner of India must get the new notes, banks to be educated,etc. THis is a close knit clever strategical move planned way ahead! 

Arunima Singh wrote:

Kalyani Nandurkar wrote:

It is a welcome move and this decision is being applauded and welcomed by all the leading economists in the country going by the large-scale debates that we can see on various channels. Even the small time industrialists, traders and farmers whose daily business transactions are done in cash are seen welcoming the move. Of course, it will indeed create trouble for common people due to the shortage of small currencies but I expect it will only be a short term effect and by December or January, once the new currency notes are well in circulation, there won't be any problem. This is a welcome move and I wonder if the timing to do so now has been influenced by UP elections in 2017 and to bring down certain political strongmen who cannot be touched otherwise? Just a thought.....

Definitely a smart move and also correct political timing..UP and Punjab election. Definitely he could sense the misuse of black money. Big impact on those strong men for sure

Yes, it was well thought of..with elections in both states around the corner, US presidential elections and what else, we can even fail to imagine. I think another industry which is bound to crash down on its own feet is the Bollywood, that is another sector where black money is generated big time.

usha manohar wrote:

Absolutely, lthe hawala money trail used by the terrorists will now be stopped until they think of some new way of doing it..

In anyway you look at this move, it is a multi pronged attack on Black money and Hawala Money.

rambabu wrote:

usha manohar wrote:

Absolutely, lthe hawala money trail used by the terrorists will now be stopped until they think of some new way of doing it..

In anyway you look at this move, it is a multi pronged attack on Black money and Hawala Money.

Of course, it is the main purpose of this surprise, quick operation. Why do you think he took the pain of banning all those notes, which according to RBI statistics, comprise almost 98% of the total value of money in circulation?

Swetha Shenoy wrote:

I do have my concerns over this move. I would be glad if someone throws light 

1. What about people who donot have bank account and heavily depend upon the stash of 500 or 1000 notes like say, maids,gardeners,farmers , elderly people etc

2.People fell deaf ears when there was a chance to adapt to credit/debit card transactions, Many petrol bunks and other restaurants always say excuses such as " the swipe system is not working"

3. the transport people such as autowalas will be rebelling this move?

4. If in course of time, will the prices of commodities come down? will taxes like swach bharat tax and krishi kalyan cess be eliminated? What would Government do with the undisclosed income (if they happen to claim all the black money with this move?)

I see that these sudden measures bring much panic to the common man!

There will be inconvenience to many for some days. No ATM transactions for two days. Bank closed for one day. Thereafter exchange of old notes and withdrawal with some restrictions. But ultimately, everything will be normal. The petty business men will be affected more. The big industrial houses have many ways to channelize black money. They don't keep currency notes in stock. It is mainly the petty businessmen and bureaucrats who will be put to inconvenience. But they will also solve their difficulty. One way is to get the old notes deposited in relatives' and other friends accounts and get back from them new currency notes by withdrawal.  In fact, RBI governor has advised people not to allow themselves be used by black money holders this way. But any way, people will adopt some tricks. It is the small fish that is caught in net. the Whales, big fish, crocodiles break the net and are not caught. 

Gulshan Kumar Ajmani wrote:

Swetha Shenoy wrote:

I do have my concerns over this move. I would be glad if someone throws light 

1. What about people who donot have bank account and heavily depend upon the stash of 500 or 1000 notes like say, maids,gardeners,farmers , elderly people etc

2.People fell deaf ears when there was a chance to adapt to credit/debit card transactions, Many petrol bunks and other restaurants always say excuses such as " the swipe system is not working"

3. the transport people such as autowalas will be rebelling this move?

4. If in course of time, will the prices of commodities come down? will taxes like swach bharat tax and krishi kalyan cess be eliminated? What would Government do with the undisclosed income (if they happen to claim all the black money with this move?)

I see that these sudden measures bring much panic to the common man!

There will be inconvenience to many for some days. No ATM transactions for two days. Bank closed for one day. Thereafter exchange of old notes and withdrawal with some restrictions. But ultimately, everything will be normal. The petty business men will be affected more. The big industrial houses have many ways to channelize black money. They don't keep currency notes in stock. It is mainly the petty businessmen and bureaucrats who will be put to inconvenience. But they will also solve their difficulty. One way is to get the old notes deposited in relatives' and other friends accounts and get back from them new currency notes by withdrawal.  In fact, RBI governor has advised people not to allow themselves be used by black money holders this way. But any way, people will adopt some tricks. It is the small fish that is caught in net. the Whales, big fish, crocodiles break the net and are not caught. 

 Union Minister Venkaiah Naidu,said ,when a dynamic measure like this is introduced with the sole aim of stopping Black money, People are bound to face inconveniences for a few days.the Minister added, people should  support the  Government. In a few days the results can be seen.

There are checks put in place like limiting the deposit amount specifically to bring down the black money transactions that may happen through valid bank accounts. However, there are many outlets where one can use the notes and all post offices are accepting the notes into valid sb accounts.

We have to  think of the long term benefits rather than cribbing and finding faults ...a little bit of inconvenience is nothing compared to the monumental step that Modi and his team had taken.

It has come as a shock to many of the people here at my place. The reason being most of the family are involved with informal saving which we refer as ' marup'. The members often contribute the money in larger denominations for conveniences. Anyway, though its inconvenient as of now but many are rejoicing at the move

Divya wrote:

Along with that the restriction that u can withdraw only 2k from atm.... Ths would mean I need to visit the atm for atleast 15 days a month if u need to pay my maid... Milkman... Car cleaner... Watchman etc etc... Wht is the use if I hv to take so much trouble to use my own hard earned money

This system is not forever, it only for few days. If you need more money go to your bank, you can withdraw 10k. 

usha manohar wrote:

There are checks put in place like limiting the deposit amount specifically to bring down the black money transactions that may happen through valid bank accounts. However, there are many outlets where one can use the notes and all post offices are accepting the notes into valid sb accounts.

We have to  think of the long term benefits rather than cribbing and finding faults ...a little bit of inconvenience is nothing compared to the monumental step that Modi and his team had taken.

It habit of some people to blame. Government gave enough time to disclose black money but people did't regard it. It is certain that more that 50% black money which people have in currency will be converted in piece of paper. 

Hospitals and chemists are not accepting 500/1000 notes inspite of asurance by the PM. BJP spokesperson is saying they can pay by cheque. Who accepts cheques fcom unknown persons.

vijay wrote:

Hospitals and chemists are not accepting 500/1000 notes inspite of asurance by the PM. BJP spokesperson is saying they can pay by cheque. Who accepts cheques fcom unknown persons.

You are right no one accepts cheques from unknown persons. Hospitals and chemists can't refuse to accept because it is order of government. But from tomorrow one can exchange notes.

I think what was shown on TV was from a hospital in Kolkotta and there was a reason for that..Apparently they gave change to quite a few people who bought medicines and gave them large notes but when someone bought 20 odd rupees worth of medicines and wanted to use a 500 rupee note he declined saying he is running out of small notes..In my own city I used 500 and 100 rupees for petrol, for gas cylinder and to buy medicines without any hassle and I am told even in Bangalore they could use it in hospitals ..

Incidentally, according to the article link given below, Mr Modi took the advice of an eminent economist .

http://m.indiatimes.com/news/here-is-the-man-who-advised-pm-modi-to-ban-bigger-currency-notes-265162.html

Incidents were shown from a number of cities. 

There are bound to be a few stray cases esp when there is anti propaganda by the opposition..but , people are extremely happy by this decision and so is the President of India and several opposition leaders except the communal party of course which is perpetually in a combat mood ! But frankly does their opinion matter ?