We should not be alarmed by printing of another set of Rs 500 and Rs 2000 notes as they kno that that if misused to heap black money they soon will get demonetized. Soon people will learn the culture of plastic or electronic card transaction practice and the use of currency notes will become minimal. Ultimately in a decade or two to come transaction service charges may come into play and taxation will get further rationalized.
LOOPHOLE : Exchange of old 500, 1000 notes. – Have noticed, that one can easily go and exchange the old notes in different banks with different ID proofs. So even on a single day a person can visit multiple branches (assume minimum 5 no.), so he can exchange notes to the value of Rs. 4000/- X 5 i.e. 20,000/- in single day. Thus, in next 50 days (or upto 24th November), one can imagine the amount he can exchange. Further, he can also send some representatives also with ID proof and authorization letters (further a multiple of 5 can be assumed). I don''t know how this will weed out the black money menace. I think there is a loophole in the system which RBI must quickly act upon … Banks must do a real time entry into the system mentioning the ID number, and the moment the same ID number in entered in some other bank branch for exchange of old notes, a POP-UP should automatically display on bank persons accepting old notes and the request for exchange of notes should be disallowed.
Re: Re: LOOPHOLE : Exchange of old 500, 1000 notes.
by harpreet brar on Nov 10, 2016 09:48 PM
Well, I agree with you. The issue i am raising is that as there is no record being entered in computer system (or online system) on real time basis, people may try to get rid of their black money by visiting various branches in a city with various IDs and may be even with different representatives... TO avoid this, all exchange transactions should also be monitored along with the deposit cases..
Re: LOOPHOLE : Exchange of old 500, 1000 notes.
by Manohar Rao on Nov 10, 2016 08:58 PM
All the transactions are getting recorded. The person who is trying to exchange the notes five times daily at different places or banks will be caught very easily and if he does it daily too then also he will get caught. If the total amount exchanged is more than 2 lakhs he will automatically get into bad books of income tax department.
Re: Re: LOOPHOLE : Exchange of old 500, 1000 notes.
by harpreet brar on Nov 10, 2016 09:43 PM
Well, I hope that the transaction are getting recorded. But what i observed today that no computeried entry is done for the exchange of currency being done at the cashier counter. .. .. Also, regarding bad books of IT department, I think it is for Deposit currency case, while in case of Exchange of currency, there is no check.. I may be wrong,, and I would happy to be wrong, because I believe that this exchange transactions should also have a cummulative cap (i.e. other than Rs. 4,000/- daily limit
Re: LOOPHOLE : Exchange of old 500, 1000 notes.
by Ravi Palwankar on Nov 11, 2016 09:51 AM
Ravi Palwankar had proposed to ban all currencies and even replace the image of Honourable Mahatma Gandhiji with that of "all religion symbol". This will help to respect to currency by all citizens of India. Pls google "Black money ravi palwankar" . Thx Ravi
Good show Mr PM. This is good move, but? 1)It will only eradicate Black Money generated till now in India. Not future BM and not the ones which have gone out. 2)It will eliminate corruption till now.Not future Corruption. 3)It will eradicate counterfeit money printed till now. How are we going to prevent future counterfeit notes,from entering India? 4)The administrative cost of this entire operation is presently not known.It is likely to be enormous. 5)How are we going to prevent future crimes? What are our plans? 6)IAS and IPS officers can prevent it, if they are given a free hand by the PM/CMs. 7)Let us not allow this herculean effort to go waste,by allowing it to reappear?
Re: Good show PM.
by Satish Kumar on Nov 10, 2016 07:43 PM
Best could be banning use of cash for transaction involving lakhs and crores. let them do electronic means like cheque, draft, online transfer. OR making rule that one should not posses cash beyond certain limit (lets say not more that 10 lakhs) and let them have rest of money in accounts. Let banks alone use huge cash. And declare police will not take complaint if had more money (beyond the limit), which will add fear for any one to have more cash in hand.
Re: Good show PM.
by Manohar Rao on Nov 10, 2016 09:13 PM
Decisions can be implemented in a day but the planning that goes to implement such decisions takes years. Similarly, when a plan is executed it takes sometime to get the results and also the pros and cons of it. Next time a better fool proof system can planned and implemented after studying the pros and cons. There is a saying that Rome was not built in a day.Similarly, corruption has not sprung up suddenly, it has been there for decades and centuries, to weed out such deep rooted evil it will take more such steps again and again.
Re: Good show PM.
by Ravi Palwankar on Nov 11, 2016 09:52 AM
Ravi Palwankar had proposed to ban all currencies and even replace the image of Honourable Mahatma Gandhiji with that of "all religion symbol". This will help to respect to currency by all citizens of India. Pls google "Black money ravi palwankar" . Thx Ravi
make sense what you say, but I feel that fake money is a real menace here which I assume is not getting detected as fake and is currently in circulation without even getting detected and hence the urgency to ban it immediately, 30th sept, 2016 was a deadline to declare black money which got good result now it has happened for 2 reason primarily to get the common people's money in bank so that market has good liquidity and finance available, similarly the people gold was asked to be deposited with bank and second reason is the fake currency which is not getting detected in our current financial situation and since this is alarming, govt. decided to ban it immediately to stop exorbitant amount of loss..it is just my speculation though@!
In long term, I don't see any benefit of discontinuing old notes and subsequently releasing new notes with same denomination.
The only solution to curb this mess is to completely stop higher denomination and release maximum of Rs 200 (two hundred) denomination AND then effort should be to make cashless economy. If people can use mobile then why can't they use card and card swapping machines.
In US maximum currency is $100. In UK, though 50/100 pond notes in circulation but you will hardly (rarely) see it. I was there in UK for 1 year but not seen above 20 pond denomination even single time. Exclusively I had given written request to bank to arrange of higher denomination for me as I was suppose to carry it to India.
In long term, I don't see any benefit of discontinuing old notes and subsequently releasing new notes with same denomination.
The only solution to curb this mess is to completely stop higher denomination and release maximum of Rs 200 (two hundred) denomination AND then effort should be to make cashless economy. If people can use mobile then why can't they use card and card swapping machines.
In US maximum currency is $100. In UK, though 50/100 pond notes in circulation but you will hardly (rarely) see it. I was there in UK for 1 year but not seen above 20 pond denomination even single time. Exclusively I had given written request to bank to arrange of higher denomination for me as I was suppose to carry it to India.
In long term, I don't see any benefit of discontinuing old notes and subsequently releasing new notes with same denomination.
The only solution to curb this mess is to completely stop higher denomination and release maximum of Rs 200 (two hundred) denomination AND then effort should be to make cashless economy. If people can use mobile then why can't they use card and card swapping machines.
In US maximum currency is $100. In UK, though 50/100 pond notes in circulation but you will hardly (rarely) see it. I was there in UK for 1 year but not seen above 20 pond denomination even single time. Exclusively I had given written request to bank to arrange of higher denomination for me as I was suppose to carry it to India.
Mr. Bokil is hapy with it. but he proposed to ban 500 notes completely and advocated small value currency notes. but government is going to issue notes of 2000. bokil is salient on that.
