Old Currency of Rs. 500 and Rs. 1000 Void from 09th November 2016

[TSIVipul]

@Akash
I wish government had decided to put the money in hands of people instead of putting ink on their fingertips. The move they have done could be easily done in a better planned way. They could have upgraded ATMs for new notes without informing if older ones will go out of business or not. They could have simply told that new notes will come and then dropped their bomb after preparing every ATM in the country to dispense new notes.

This excuse that ATMs don't work for most of the time is not gonna work. I don't need ATMs to work most of the time, if I have the cash in my hand when I need it; that's enough for me. If one ATM is unable to dispense cash on a regular day then I know that if I drive 3 kilometers more then I have 2 of them. But the situation now is that if the ATM is working then also the queue is long enough that I know that I won't ang ways get the money because before my turn comes; the machine will go out of cash. Either they have their 100 ones or the pinkworld (the flimsy 2000 one) and I tell you; not everyone is interested in pinkworld as of now. There are better options after all

It's not that I am sitting with a lot of black money and is disturbed. It's just that I can feel for the people who are working for me on daily wages. I know from where and how we are managing to pay the money so that their kids can get to eat something in the dinner tonight. If you have enough guts to tell the mother who isn't sure if she will be able to feed her child tonight that this move is perfect then I guess you need to see that expression once.

I am not talking about our glittery high society or so-called educated group of people who just know how to shout on a rape on social media (there are thousands of them who keep shouting on facebook but don't have guts to even stop an eve teaser). I am talking about the people who are actually responsible for the man who is now sitting in 72 RCR and delivering orders, the people who never miss a chance to vote, the people for whom only their living matters even if it comes from black or white and yes; they are way way more honest than you, me or anyone else here. At least you can't just say ATMs are like that only and turn a cold shoulder towards this class which actually decides who will be the PM and then gets only sufferings.

I know many white collar salaried guys who know only how to speak and not to act. Recently in a bus journey (I travel by buses frequently) I noticed that the conductor asked an elderly woman to get off the bus just because she didn't had a 100 rupees note and had only 500 rupees one (It was on 9th morning, Akash knows that day I went Noida for an exam by bus). On 8th midnight the 500 and 1000 rupees ban was imposed and on 9th morning a government servant doing this to an elderly woman. Any comments?

What was worse was the attitude of our iphone and earphone dudes who were watching it silently. Such people are nothing but an embarrassment to the society. Finally it was me who stood and literally gave the bus conductor a lesson and he gave the woman a ticket with a word of apology.

The biggest issue for now is that people have become so selfish that none is willing to lend a helping hand to another and nor is our government willing to make sure that the less fortunate people at least get helped here.

@Mitra
Considering the number of toll plazas, if government makes a provision that each trucker can get 1000 rupees exchanged per day then that is enough for at least logistic supply chain tk keep on going smoothly. And when it's only 1000 per day then the driver and cleaner won't bother to exchange it on profit or help anyone else as this money will be just enough for meeting their basic needs.

 

[Akash1886]

@Akash
I wish government had decided to put the money in hands of people instead of putting ink on their fingertips. The move they have done could be easily done in a better planned way. They could have upgraded ATMs for new notes without informing if older ones will go out of business or not. They could have simply told that new notes will come and then dropped their bomb after preparing every ATM in the country to dispense new notes.

Do You think Vipul providing money to 125 Crore people here in India could have been done in 24-48 hours? Also for upgrading ATMs, it is required to be shut so nothing would have changed in terms of people lining up. Even after working round the clock, they are trying to meet the cash crunch. However, some of our guys are so clever that they want almost entire new currency for themselves hence by hook or by crook, they are doing this and it leads to many of the genuine people face hardships. As for having cash, lower denomination notes can be used for sometime and every person from every walk of life and work background today knows as to what has actually happened so the only way out is to either use alternative mode of transactions or patiently wait for the crisis to end and there are ATMs where 500 rupees new note is available.

This excuse that ATMs don't work for most of the time is not gonna work. I don't need ATMs to work most of the time, if I have the cash in my hand when I need it; that's enough for me. If one ATM is unable to dispense cash on a regular day then I know that if I drive 3 kilometers more then I have 2 of them. But the situation now is that if the ATM is working then also the queue is long enough that I know that I won't ang ways get the money because before my turn comes; the machine will go out of cash. Either they have their 100 ones or the pinkworld (the flimsy 2000 one) and I tell you; not everyone is interested in pinkworld as of now. There are better options after all

I believe due to lower denomination notes like that of Rs. 100, the maximum capacity of cash that can be put in an ATM is around 2.5 Lacs so if one person goes to 10 ATM and withdraws 2500 from each then he will have 25000 with him in new currency. Such kind of people are the ones because of whom the needy are facing the crunch. And 2000 note is not easily available in all ATMs as of now.

It's not that I am sitting with a lot of black money and is disturbed. It's just that I can feel for the people who are working for me on daily wages. I know from where and how we are managing to pay the money so that their kids can get to eat something in the dinner tonight. If you have enough guts to tell the mother who isn't sure if she will be able to feed her child tonight that this move is perfect then I guess you need to see that expression once.

I have maintained from day 1 that the construction labor is the worst hit. But do you know, of the labor which is standing in queue majority are those who have come to exchange the old currency given to them by someone who has plenty of it. Only 5 to 10% of people standing queue are genuine. 300 Rs. is the rate of yesterday as shown in a news report for a labor who is standing in the line to exchange someone else's old currency. Now, if such people end up in lines do you think it will help the needy in any way? Even the genuine people will be turned away because of them.

I am not talking about our glittery high society or so-called educated group of people who just know how to shout on a rape on social media (there are thousands of them who keep shouting on facebook but don't have guts to even stop an eve teaser). I am talking about the people who are actually responsible for the man who is now sitting in 72 RCR and delivering orders, the people who never miss a chance to vote, the people for whom only their living matters even if it comes from black or white and yes; they are way way more honest than you, me or anyone else here. At least you can't just say ATMs are like that only and turn a cold shoulder towards this class which actually decides who will be the PM and then gets only sufferings.

In this crisis there has been a equality maintained as all are facing same crisis. And the man at 72 RCR came to power with absolute majority. We crib for bribes and black money and when one step is taken we criticize it to no ends. We say we can live and die for our country, but when crisis like this one has occurred no one is even willing to stand in queue for few hours. Don't you think its hypocritical?

Recently in a bus journey (I travel by buses frequently) I noticed that the conductor asked an elderly woman to get off the bus just because she didn't had a 100 rupees note and had only 500 rupees one

I agree this was a very rude gesture on part of the conductor. He should have surely made her travel for free. But tell me if every person has a 500-1000 rupee note and wants to exchange it for just a ticket of 100-200 rupees and wants rest of change, then, for how long will the conductor keep on paying it to them? People say, Govt has told you can pay the old currency on Govt. Milk Booth, Buses, Govt. Medical Shops but that does not mean that you go buy 100 rupees of stuff and pay by a old 1000 rupees note and want cash. Once or Twice it can be done but do you think, 100s of people coming with the same tactics are correct on their part? If you are a shop owner and if people buy stuff worth 200-300 and give you a 1000 rupees or 500 rupees note then for how long will you keep on giving them change?

On 8th midnight the 500 and 1000 rupees ban was imposed and on 9th morning a government servant doing this to an elderly woman. Any comments?

For senior citizens yes in some cases exceptions need to be made but in this situation every other person is taking undue advantage so even the genuine people are facing the pain which is terrible.

What was worse was the attitude of our iphone and earphone dudes who were watching it silently. Such people are nothing but an embarrassment to the society. Finally it was me who stood and literally gave the bus conductor a lesson and he gave the woman a ticket with a word of apology.

What you did was right because you could sense that lady was a genuine person and even I would have done the same. But taking her as an exception, in this crisis, daily many come with the clever tactics of changing old currency in the buses so it is always difficult to ascertain and accordingly treat everyone.

The biggest issue for now is that people have become so selfish that none is willing to lend a helping hand to another and nor is our government willing to make sure that the less fortunate people at least get helped here.

I have said the same thing that people are taking advantage/support of the poor to fuel their cause. As for the govt. this move has been spoiled by our own public who have selfishly acted. Why are we not suffice with 2500/4500 rupees for a few days? Why is it that even in crisis we need 10-20K in our pockets? The less fortunate are also as much in grief because of this crisis so they should also be dealt equally. They are also humans and should be regarded as well. Even if 5-10% of less fortunate people are genuine then too, we should surely give them equal chance and not fulfill our vested interests.

Regards

Akash

 

[nmm mithra]

Limit To Swap Old Notes For New Drops To Rs. 2,000 From Rs. 4,500

Families can withdraw Rs. 2.5 lakh for weddings from one account and farmers can withdraw up to Rs. 25,000 a week, the government said today, announcing another set of measures to ease a massive cash crunch after the currency ban. The limit for swapping notes at banks has been reduced from Rs. 4,500 to Rs. 2,000 for each person.

"The government has decided to permit farmers to draw up to Rs. 25,000 per week against crop loans sanctioned and credited to their accounts," said Economic Affairs Secretary Shaktikanta Das on Thursday.

The accounts have to be in the name of the farmer and will be subject to loan limits. The government's sudden decision to pull out Rs. 500 and Rs. 1,000 notes from circulation has driven people to wait for hours at banks and ATMs for cash. In the wedding season, the notes ban has led to a severe crisis for several families who had withdrawn cash just before the demonetisation.

Source: ndtv

 

[hemantp]

Somehow I feel if Govt had introduced 5000 rs and even 10000 rs notes too, things would have gone smoothly.

E.g.,
One withdraws 24K, gets 1 x 10K, 2 x 5k, 40 x 100, while currently they get 10 x 2k, 40 x 100.

Thus, only 3 new notes have gone from bank instead of 10.

For people withdrawing even higher amounts, this would further save more 2k notes.

Also, increases throughput of printing as there can be limited number of notes printed every day.

 

[nmm mithra]

Somehow I feel if Govt had introduced 5000 rs and even 10000 rs notes too, things would have gone smoothly.

When these two currencies are introduced then it will be a burden for the consumers as well as the traders to get a change for that Rs. 5000 and Rs. 10,000 and correspondingly there would be an increase in the prices of basic commodities. Even with Rs. 500 or Rs. 1,000 (old) we weren't able to buy small commodities like milk and other things because of lack of change.

 

[Nairrk]

Some new steps taken as under:

# For marriages, the limit of withdrawals from bank accounts has been increased to Rs. 2.5 lakh. One member of the family – father, mother, bride or groom – can withdraw this amount

# For over the counter exchange of old 500/1000 rupee notes the limit of Rs 4,500 has been reduced to Rs. 2,000, with effect from Nov 18

# Farmers can withdraw Rs. 25,000 per week against crop loans sanctioned and credited to their accounts

# Wholesale traders registered with APMC markets can withdraw Rs. 50,000 per week

# Central government employees upto group C can draw an advance of upto Rs. 10,000 in cash that’ll be adjusted against their November salaries
///

 

[IndicaDLS2002]

Demonetisation: Massive deposit bonanza for banks pulls down interest rates - The Economic Times

 

[allhyundaicars]

For the middle class working people who depended on cash transactions only, for them it can be a issue but honestly, who had stopped them from accepting alternatives like a valid cheque book? The problem is with the bunch of people who did not opt for cheque books and today they have nothing else left but to look for ATMs. When this ATM concept wasn't there, how did we all withdraw money? that was by using cheques so same way it has to be now as simple as that

people were present at the banks with cheques in their hand. but guess what they couldn't enter the bank because of the crowd. so yes people are facing problems because they don't have any way to withdraw cash by any means.

I am totally agreeing that this situation is bad for daily wage earners but other than them, the educated/working class should not be bothered

you are so wrong on this. today a lecturer ( head of economics department ) asked my dad to lend him some money because they were out of cash. you should understand not every educated person is living in a good area where there will be loads of shops accepting debit and credit cards. just so you know he and his wife easily make 2.5 lakhs a month of solid white money coming from the government. he wasn't able to withdraw any money by any means.

Of-course they would have. But if we have to tackle this curse of Black Money then a strong and drastic step has to be taken. At times such steps may pain for sometime but in the long run it will benefit

do you really think this will end corruption ? people are buying new currency notes by exchanging like i mentioned before. people who had black money have just less of it now. they are not standing in queues , they are busy exchanging the money with new notes.

For the lakhs of ATMs which exist in India, if the upgrading had begun earlier as well then too, ATMs would have been shut like they are now and same lines for ATM withdrawals would have been there as now

i didn't say to upgrade every atm all at once. if one atm is not working people move to another. the catch here is that at the most i have seen 10-15 people waiting at a atm not 100s of people. so no your assumption is wrong.

i read it in the news that most of the atm had 3 lakhs everytime it was filled. so i guess they must be adding 3000 100rs notes. well if they updated the machine same machine would be dispensing 2000rs notes and the new 500rs notes together. you can do the math.

Even if they have known or not, do you think, currency exchange for 125 Crore people here in India could have been made available to all in 24 hours?

they did make the notes invalid in an instant so yeah i think they could have made it available to people within 24 hours. it has been 9 days and still there are lakhs of people waiting outside the banks.

 

[Prads]

Old Currency of Rs. 500 and Rs. 1000 Void,the view of an agriculturist!

Well alot has been said over the last few days i guess in the news,social media & between people! I will put in my personal opinion as i am from the agriculture field but before that i feel this move has given a blow to the economy for a good few months but i will still give credit to the PM or whoever came up with this idea for trying, in my opinion people who have crores in black will definitely loose a huge chunk.I shall put my views below in steps

- We hire labourers based on demand & sometimes its as high as 40 to 60 people in a day otherwise it fluctuates between 3 to 10 per day. They want to be paid instantly so cash is the only means which wont be a hassle.

- Now remember what i said payment without hassle.So far only the city & town based people are the focus with debit/credit cards & ATMS etc, but what people dont realize is we are a cash based system whether they like it or not. India is not made up of just cities,it has villages & even remote areas.

- Few weeks back my friend hosted a dinner at JW Marriott hotel Bangalore,when the bill arrived things became uncomfortable, not because it was huge but the card transaction was not working! Three different cards later we realized there was a problem. If this is the transaction level you get in the middle of a city at a posh place, what is the level of service you can expect in a town or village??

- The problem is our online money system is not reliable across the country(& mite never be),so they want my worker to use a debit/credit card for buying a pack of bidi (cheap tobacco) for example at a shed like store where your lucky to get even a cell phone network or electricity? We have millions of such individuals & examples.

- As time goes by even at a small pace money will again trickle into the economy.Money will always be part of everyday rural India. We are not able to pay our workers & what ever fiction everyone believes,money is crucial or most crucial for rural India. Some have bank accounts but they need to use multiple transports to reach a bank. And mostly pointless as i said if one has to run & sit in a bank or nearest village ATM which i am absolutely confident wont be functioning( reality) majority of the time to get their under 200 rupees daily wage.

- Talk to people from well developed countries on why they prefer credit card & one of the advantages is protection from card skimming or stolen transaction. Where your card details is copied & later duplicated to make purchases elsewhere. Your credit card company will wave off your liability if such thing happens but not sure what will happen with a debit card.A counterfeit note or pick pocket mite ruin your day but a skimmed debit card with all your money in the account can ruin your life.

- Today i was forced to buy more items than i wanted as they dint have change for 2000 & was made to wait good 20 mins for my 750 odd rupees of change.Strangling the economy of cash is never ideal & common sense that unless such economy stunts are repeated every 2 years then cash will always flow in Indian economy.

Also my personal problem with people is their lack of individual thinking. People will believe what is blindly forwarded on Whatsapp or shared on Facebook etc.People dont know how big or what 1000 acres looks like will say every rich man or politico has 1000's of acres,lakhs of crores etc etc. The funny thing was there was a story that there is so much Indian black money stored in foreign countries that every Indian will get 15 lakhs if it all comes back & India will become number one economy in the world blah blah, yes am sure all of you read such rumours, but what Modi(the PM) showed was black money wasnt sitting in Swiss bank accounts but with every common Indian & thats the hard fact!

 

[Akash1886]

people were present at the banks with cheques in their hand. but guess what they couldn't enter the bank because of the crowd. so yes people are facing problems because they don't have any way to withdraw cash by any means.

you are so wrong on this. today a lecturer ( head of economics department ) asked my dad to lend him some money because they were out of cash. you should understand not every educated person is living in a good area where there will be loads of shops accepting debit and credit cards. he wasn't able to withdraw any money by any means.

i didn't say to upgrade every atm all at once. if one atm is not working people move to another. the catch here is that at the most i have seen 10-15 people waiting at a atm not 100s of people. so no your assumption is wrong.

i read it in the news that most of the atm had 3 lakhs everytime it was filled. so i guess they must be adding 3000 100rs notes. well if they updated the machine same machine would be dispensing 2000rs notes and the new 500rs notes together. you can do the math.

The calibration of our ATMs to dispense the new 2000 rupees note is not an easy task, just yesterday, I had been to one of the private bank in Noida and over there was told by staff that for calibrating their ATM there is a tray needed which would be fixed for dispensing new currency and they are expecting it real soon.

they did make the notes invalid in an instant so yeah i think they could have made it available to people within 24 hours. it has been 9 days and still there are lakhs of people waiting outside the banks.

To mark a existing practice/object as illegal it is quite easier than making a new thing legal. There are a lot of patents and formalities involved in it before something becomes legal specially in regards to finances of a country/company.

Also, why are the needy not getting cash? why are people fainting in queues? why is ATM not working/dispensing cash? Why is the educated/working class looking to borrow money? See this! This article is from today's newspaper's Noida Edition. I had also pointed towards this similar situation in one of my post above. We can have holier than thou thoughts over this crisis but there are people among us only who prove our thoughts are wrong.

​

Regards

Akash

 

[generalmax]

dear All, Kindly do not spread rumors.Read the RBI guidelines again.
Educate and help others.
RBI FAQs..

 

[allhyundaicars]

The calibration of our ATMs to dispense the new 2000 rupees note is not an easy task, just yesterday, I had been to one of the private bank in Noida and over there was told by staff that for calibrating their ATM there is a tray needed which would be fixed for dispensing new currency and they are expecting it real soon.

that's the thing. they should have made arrangements before. it wouldn't have been such a mess if they made arrangements before. now that they have restricted withdrawls to 2000rs means they are still not doing things at the required pace.

and about the newspaper clipping - exactly my point. this method just gave everyone else to extort money from others. maybe black money holders are using this for their benefit but there must be many people using this way to get money just to fulfill their daily needs just because they are not getting a way to get money from the banks.

the ink method being used is a welcome move to avoid people going everyday to encash and selling the notes.

 

[TSIVipul]

Now listen to this one

New limit is rupees 2000

Here we have one Mr. ATM which isn't accepting any value less than 2000 and if you put 2000 then you get the new useless currency. IMO this 2000 rupees note is the last thing we have needed this time.

 

[jazzyb5454]

Slightly Off topic, Can you pay your credit card bill through cash? Thinking of getting a DA polisher from detailed clean.

 

[TSIVipul]

Slightly Off topic, Can you pay your credit card bill through cash? Thinking of getting a DA polisher from detailed clean.

Yes you can, given that your bank allows it.