No More Of Rs. 500/- and Rs. 1000/- Notes From Tomorrow!
@Nihil90 (343)
Indore, India
November 8, 2016 9:53am CST
Mr. Narendra Modi has announced that 500/- and 1000/- rupee notes will not be used from tomorrow. The banks will remain closed tomorrow. The ATMs won't work for the next two days. People will have to deposit the notes with above mentioned denominations in banks before 31st December. The government is planning to bring Rs.2000/- and Rs.5000/- notes.
What do you think will be the possible outcomes of such a decision?
4 people like this
7 responses
@MissNikki (5237)
• Maple Ridge, British Columbia
11 Nov 16
Wow, that is big news for India!
1 person likes this
@MissNikki (5237)
• Maple Ridge, British Columbia
13 Nov 16
@Nihil90 Well, that sounds like a good thing.
1 person likes this
@KnehKnah (3584)
• Philippines
8 Nov 16
Our Central Bank of the Philippines also issue recall of paper money & coins when it will release new designs. So, we deposit our old paper money & coins in our depository banks & get in return (as we withdraw), the new designs. But, the CB retains the denominations (from P20 to P1,000), as well as the coins. In so doing, we don't find inconveniences in our purchase of any commodity be it thru the use of the coins or the paper money.
If you will have only Rs. 2000 & Rs. 5000 notes, will there be no problem in its use?
1 person likes this
@Nihil90 (343)
• Indore, India
8 Nov 16
Similar procedure will be followed in India too. The major purpose behind the decision, in my opinion, is to bring out black money as keeping it after the deadline will make it mere paper. I don't think there will be any problems so long as there is sufficient supply of the new currency denominations.
1 person likes this
@Nihil90 (343)
• Indore, India
9 Nov 16
@KnehKnah That's the point! Rven if the government is able to squeeze out the black money now, the circulation of larger denominations will ensure that the menace of black money may take on even larger proportions in the future. It would have ben better if currency with denomination of only upto Rs.500/- were kept in circulation and new series of 500 rupee notes were introduced.
@owlwings (43910)
• Cambridge, England
8 Nov 16
I have no doubt that this will decrease the amount of 'black money' and forgeries, which inevitably undermine the economy. Decisions like this work best if they are announced at very short notice so that the criminals behind the forgeries are given as little time as possible to rearrange their affairs.
1 person likes this
@xstitcher (32685)
• Petaluma, California
10 Nov 16
I'm afraid that I don't understand much about financial things. I'm sure that there are myLotters out there that do, though !
1 person likes this
@Nihil90 (343)
• Indore, India
13 Nov 16
Oh don't worry! Even I have a limited understanding of financial matters, but the decision was so big in tis significance that I started reading articles related to it and gained an idea of how the things work. There are no complications in it.
@Nihil90 (343)
• Indore, India
13 Nov 16
It is like one day the American government decides that $100 notes will cease to be legal tenders, in order to render useless all the cash that American people have earned by illegal means. Then the Federal Reserve brings out a new series of $100 notes and at the same time introduces a new denomination of $300 notes.
@FayeHazel (40243)
• United States
11 Nov 16
Wow. I wonder why they are doing away with that denomination of currency? Will you get credit for your 500 and 1000 notes?
1 person likes this
@Nihil90 (343)
• Indore, India
12 Nov 16
The decision is aimed at rendering all the unaccounted cash, or black money, and fake currency of 500 and 1000 notes useless. The government has given common people a deadline within which they can deposit these notes in their bank accounts, so there is no issue with not getting an equivalent value for their notes.
