We lost 300 quids worth of money because of this 
Good thing to do overall though
Good thing to do overall though
India politics thread
- Thread starter Shiva87
- Start date
That was the first point which was mentioned by Modi in his address, the counterfeit currency, post which he talked about black money.
If these people don't have a bank account, they can still 'exchange' money up to 4K, per person in family, no need to deposit. They will get either the new tenders of 500 or old of 100 in return for that 4K. All they need is an ID card for this exchange. The amount above 4K will need to be deposited in bank. Also it is important to keep in mind that all this is about notes with 500 and 1000 denomination ONLY. So the poor or anyone, who is carrying cash in denomination of 100 and below need not exchange or deposit. Of say 10K cash at home of a poor, 5K is in 500 and 1000 and remaining is in 100s, only the former 5K needs to be exchanged/deposited. Any two member of family can distribute those 5K among them and go to bank and get exchanged.
About bank accounts: One of the first things current govt had done after coming to power was launch a bank account opening scheme, even with zero balance especially for poor who don't have one.
The article below, which is 1.5 years old is quoting the official govt site, says all but 23k households in a country of 1.25 Billion people have at least 1 bank account.
http://www.business-standard.com/ar...sehold-has-a-bank-account-115021101677_1.html
Some critics say that the number may be exaggerated by govt or people in charge of this completed the 'target' by opening account for people already having or fake ones etc or that accounts are inactive/dormant because people don't deposit so it is of no use, but even then there isn't/shouldn't be huge proportion of people without bank account now post scheme. Those still left, the process of opening the account under the scheme which was launched for poor can still be used. Very basic documents are required for it. Even kids above 10 yrs could have an account under that scheme, albeit under parental guidance. The official site says that in absence of ANY kind of ID for a person, still account can be opened after basic background check by banks. Given there are 50 days remaining for money to deposit, one can easily open the account and deposit money well within time. After the 50 days, there are still 3 months to deposit the money but that won't be at all sites, it will be at RBI (Reserve Bank of India) specified sites only and requires little more documentation than just ID.
http://pmjandhanyojana.co.in/eligibility-criteria-open-pm-jan-dhan-yojana-account/
Overall I personally find the logical intersection of 'rural/poor', 'carrying large cash at home', 'have no bank account AND ID' and 'cash in denominations of 500 and 1000 for amount above 4K' giving few individuals, not huge. Even for them though, opening an account or applying for ID and getting it (if possible) can do the trick. I am just hoping some conmen don't use this situation to fool vulnerable people in between.
Lost? Why?We lost 300 quids worth of money because of this
Good thing to do overall though
My dad just said he had a wad of rupees at home, and we aren't flying to India anytime soon.
We lost 300 quids worth of money because of this
Good thing to do overall though
FYI, it's "quid", not "quids". There is no plural.
And you have up until March next year. Hopefully for your sake they might even make alternate arrangements after that.
There is provision made for NRIs where they can authorise someone else to deposit money on their behalf. Worthwhile to look into it and see if you can authorise some relative or family friend to deposit the money.
Also I take it you mean Rs. 300K, as I always undersood quid' as slang for 1 pound.
Thanks. Yeah I meant £300 equivalent of rupees. My dad just mentioned it in passing so I'l try digging out more info but its good that there is still time to deposit the cash.
What Harshad said.
That's approx Rs. 30,000/-. Don't worry about it. Just authorise someone to deposit it in one of your accounts. Was going to suggest flying down but the cost of tickets would be more than the currency you have at home.
Yeah its not that much to warrant a flight back
Although I am getting an engagement ring made out there (without even seeing it!) so a trip to India might just kill two birds with one stone. Ah well.
Woah woah woah. If you don't like her, just say No.Yeah its not that much to warrant a flight back
Although I am getting an engagement ring made out there (without even seeing it!) so a trip to India might just kill two birds with one stone. Ah well.
Black money matters.
whats to stop the same black money process start again with 2000 rupee notes.
Have I missed something there?
Have I missed something there?
It's going to take a while for them to reorganize...after all corruption/greed is a human trait and as long as people are around, it's never going to be eradicated.
But, this is potentially a huge setback and it gives warning to certain groups and sectors that it's not business as usual.
Once you get past the initial pain - this really is a win-win
Nothing. Unless currency is banned altogether and we move to a regime where payments for everything be it for purchase of a house costing upward of Rs. 1 Crore i.e. Rs. 10 Million or purchase of an eclair costing Re. 1/- is made via some sort of card linked with your bank account, generation of black money will not stop.
What's the address?We lost 300 quids worth of money because of this
Good thing to do overall though
Asking to help you, of course.
Nothing. It's basically a reset button like in a game when you have an unprecedented kill and want to start that level again.
Not abad idea now we have mobile money banking and credit cards.
Obviously not at a lower level, but say any purchase over 10,000 rupee's must be via a digital format ... if you are big enough as a business to accept such payments or rich enough as a customer to make such payments, then you're smart enough to use digital finance!
People are missing the essential issue with digital money/payments/economy.
which is?
Identity theft/data leaks. The same way card cloning was a menace years ago (and still is in India).
Pretty great move, but the biggest of the black money hoarders are still safe as they have their black money in foreign currencies
People who are greedy and corrupt will always be corrupt. However, I assume that over the next few months a few more steps will be taken. High value transactions, example, the sale of land etc. may no longer happen with just cash. It will have to be electronically transferred which in turn means that it will be harder to stash unaccounted money.
Well not exactly. What they have in foreign currency will have to eventually be brought back into the system in some way. I believe India now has treaties with several countries like Switzerland and Maldives for disclosure of account holders. And the moment we know the account holders, we know exactly who's hoarding up, and who holds unaccounted money.
Obviously this won't eradicate the menace of black money completely, but it is a step in the right direction and something no other prime minister ever had the balls to do. It takes a lot of courage to take such a big step despite knowing that there could be serious political implications to it.
Meanwhile, Arvind Kejriwal has turned into an utter clown. What a disappointment he is.
What's to stop big transactions taking place with gold or precious stones?
Dont get me wrong, its a great initiative and Im really impressed that Modi's Government have done it. I simply hope its the start of a long term strategy and there are many more interventions which will solve this problem once and for all.
I'm in India right now (on a business trip) and all I have are RS 500 notes.
I know I can exchange them but I don't have my forex receipt, the queues are huge, and there's no guarantee the cashier can speak English.
At least I still have pounds and a credit card...
Two politicians ruining my day, on "9/11" too.
I know I can exchange them but I don't have my forex receipt, the queues are huge, and there's no guarantee the cashier can speak English.
At least I still have pounds and a credit card...
Two politicians ruining my day, on "9/11" too.
Where in India? Can ask one of the local caftards in the city to help.I'm in India right now (on a business trip) and all I have are RS 500 notes.
I know I can exchange them but I don't have my forex receipt, the queues are huge, and there's no guarantee the cashier can speak English.
At least I still have pounds and a credit card...
Two politicians ruining my day, on "9/11" too.
Ah, you have a card. Stop moaning, you cnut.
Talk to your employer. They'll sort it out for you.
How much you have?I'm in India right now (on a business trip) and all I have are RS 500 notes.
I know I can exchange them but I don't have my forex receipt, the queues are huge, and there's no guarantee the cashier can speak English.
At least I still have pounds and a credit card...
Two politicians ruining my day, on "9/11" too.
Alternatively, seek help of employer's India office.
3rd day after announcement. Still many ATMs are not having cash to dispense.
This is spot on. It is a huge blow for counterfeit market.
A very average blow in black market. Only small time black money guys will be in soup
Nothing. Corrupt officials are going to demand bribes in new notes. Traders will start stashing new notes, that's it.
Not that easy. This step is showing or rather increasing the 'cost' of carrying huge black money in cash. Nobody is saying problem of black money will go away totally but who is to say this step is not repeated in few years? After suffering a loss this time, someone will think twice before again stacking up cash in same amount.
it's not just a problem in india. trump will look to do the same in the us.
I'm in India right now (on a business trip) and all I have are RS 500 notes.
I know I can exchange them but I don't have my forex receipt, the queues are huge, and there's no guarantee the cashier can speak English.
At least I still have pounds and a credit card...
Two politicians ruining my day, on "9/11" too.
Where are you? If you are in a metropolitan city than I would be surprised if the cashier cannot speak english
So instead of stashing money, this time around they will buy stuff. Banning of notes should be combined with many many other steps maybe to actually make people get scared.
Repeating this can't be done too often. Costs are involved. People will be massively pissed off. Govts are in power based on small % of vote share. A few % flip in other direction will be devastating.
There is nothing you can do to simply stop black money being in the system. What you can do is make them think twice about taking that route, giving them a way to own up and pay their dues and if all fails, give them a big feck you like the govt has done. Does this move mean black money won't be there anymore? Ofcourse not. Nothing to stop people going the same route with the new currency but when people lose huge sums due to this move, atleast some of them will feel it's better to pay the % tax and own their money rather than see it go to waste like this.