Could someone fix the title, please? The notes aren't being made illegal, they are just ceasing to be legal tender. There's a big difference! Right now, the title is clickbait.
I thought the same too. But in layman's terms, both are same.
India's demonetisation of Rs. 500 and Rs. 1000 notes
41–50 of 336 posts
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#42All black money and hoarders will cry to sleep today.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#43I don't think There will be any positive change but the businessmen will suffer as think how will they run thier shop as some shops are costly ones
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#44Earlier quoted context omitted.
I am not sure how that will work out if the denomination itself has been declared illegitimate. Why would anyone accept 'black money' of any kind if he can't spend it elsewhere?
If you are in the low income bracket or a farmer, you can accept the money and deposit in the bank without any ramifications. All this will happen before the deadline.
hmm so the blank money hoarders would buy flats from low income bracket and framers?
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#45For international readers: Rs 500 and Rs 1000 are the highest denominations notes in India. Other available denominations are Rs 100, 50, 20, 10. This is such a major move to curb black money in the history of Indian Politics and Economy
1 USD is ~Rs 66. That is a staggering difference in purchasing power! I would guess that the only note in the US with a similar reputation which is still issued would be the $100. Notes larger than this ($500, $1000, $5000, and $10 000) have been discontinued since 1946 and actively destroyed by the Federal Reserve since 1969. Isn't there a concern that those who were using these high denomination notes just switchin…
They are introducing new Rs 500 and Rs 2000 notes and they are going to control the circulation of these new notes
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#46I am personally not sure about the impact of this. I am hoping it will bring some positive change, Indians do have a habit of hoarding huge amounts of cash. It's not something specific to "black money hoarders". Anyway I pity the bank employees for the coming few weeks!
Interesting no mention about gold, land or other valuables. This hits hard on the middle class who were holding money. Then there are ultra rich, for whom may be they are holding anywhere between 0%~30% of their black money in cash, others in other investments. For them, this is not a big issue.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#47You have to deposit all these notes in your bank account, from which you can get new notes. Anyone hoarding huge amount of black money in cash can't go to bank with it, and his money will turn worthless. Diluting such money will easily erode 20-40% value. So definitely a bold move.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#48This is a strategy copied from China. They did same in 1970-80's. Funny part is this is trying to get money from within Indian economy and wasting on govt and pet projects. The promise to re-patriate black money stashed outside India nowhere in sight. China bring in fugitives and money back even from official who took US citizenship. Modi can just dream of it and take money from hardworking Indians living in India.
Populist measure to increase vote bank and divert attention from original promise to bring back black money from abroad to India.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#49What about people not in India with a few 1000 rupee notes lying around, those are valueless for good? I have 2 notes. Wont the funds be effectively destroyed and removed from circulation, for those who don't put their cash in the bank by the end of next month. Wont this have deflationary consequences?
2,000 rupees is 30 USD at today's exchange rate. I don't see why you wouldn't be able to exchange them at a money changer wherever you happen to be now, but for that amount it may well not be worth it.
The rupee is a closed currency, the OP was never permitted to take the notes of the country in the first place, so there is no way to change them.
Re: India's demonetisation of Rs. 500 and Rs. 1000 notes
#50It is hardly going to fix the black money problem. Rich people have so many employees to do the bank run for them. Within the next month, you will see a huge spike in real estate market. People with black money will dump it in the real estate market. (If you are not an Indian, this is how it works. You buy an apartment/home/building for the amount X. But you declare it to the government that you bought it for X/10. T…
The government has become pretty smart - their standard rates have increased quite a bit (since they lose tax revenue)
Secondly, I don't think people are going to touch the old notes - just too much risk involved.
Infact, I would speculate that since a lot of black money is now worthless, we might see rates go down, especially for new constructions