500,1000 Rs Note no longer legal tender!!

[Khagesh]

@sayareakd,

That promise can also be fulfilled by simply keeping the windfall in limbo - in reserves and surplus, till a person comes forward, in compliance with laws, to claim it. Since at this late juncture, having given ample time there would be nearly no legal holder of that cash. And without dipping into the General Reserves now the Govt. can have new money issued by RBI, because it is safe in the knowledge that no new legal claimant will be coming forward.

Admitted this is not fool proof, but I think it is a distinctly workable idea.

Only thing now remains to be seen is if Modi will use it all in wasteful expeditures like imports or if he will use it for the people of this country and seems like finally he has made the right choice. At least to the degree of the money that he will have issued as extra for issuing G-Sec.

RBI will have G-Sec on Asset side with Liabilities side populated by new money. Old demonetized money remaining in the Reserves (trishanku ka swarg).

Demonetisation - promise to pay - is a limitation only for RBI which cannot issue new currency till it gets some asset side increase.

But GoI can issue as much asset as it wishes to. GoI never made any promises to pay to the bearer.

However in the normal course GoI too cannot issue unlimited amounts of G-Sec because they then suck out even good money meant for private sector enterprises, dampening production. Then when it decides to do pump priming with extra debt then it will put more currency into the system fueling inflation for already lower volumes of production. AKA The Perfect Storm.

But if GoI and RBI and Courts are reasonably sure that the bad currency is not going to bother the system then all of them will agree that new G-Sec can be issued and new money can be pumped in.

At least this is how I see it.

 

[F-14B]

Don't justify draconian measures for GoI's stupidity now.

Ok so you can justify it only if an "oxford educated"unpad gawar destroy the economy by his bullshit "reforms" we indians (myself included) are comfort loving guys as on esteemed member on this esteemed board said "sab chalta hai syndrom" we always crib about other nations right about ho how advanced they are?
Well have you thought how did they become rich and advanced?

They took hard decisions that rocked them to their core suffered losess and hardships
Many of their own citizens left their own countries and migrated but these countries presisted and went on to become powerful and prosperous
Do not take the shield of the poor because it dose not suite any one
But then you are entitled to your opinion

 

[Sakal Gharelu Ustad]

Ok so you can justify it only if an "oxford educated"unpad gawar destroy the economy by his bullshit "reforms" we indians (myself included) are comfort loving guys as on esteemed member on this esteemed board said "sab chalta hai syndrom" we always crib about other nations right about ho how advanced they are?
Well have you thought how did they become rich and advanced?

They took hard decisions that rocked them to their core suffered losess and hardships
Many of their own citizens left their own countries and migrated but these countries presisted and went on to become powerful and prosperous
Do not take the shield of the poor because it dose not suite any one
But then you are entitled to your opinion

Where did oxford educated bartender's servant come in here?

You don't get rich and advanced while converting your money requires you to talk to 2 bank managers!

 

[DingDong]

Don't justify draconian measures for GoI's stupidity now.

Government knows something which we don't, this move doesn't seem to be a decision taken in desperation, but a decision made with the confidence that the general public won't get effected/hurt. Rural Poor are more street smart compared to the urban rich.

Majority of genuine old notes have found their way into the banking system.

 

[F-14B]

Where did oxford educated bartender's servant come in here?

You don't get rich and advanced while converting your money requires you to talk to 2 bank managers!

Every one is facing problems even i faced issues i almost missed a flight because the atms were not working and i had to go to my local sbt branch and wait there in the quaue to get the cash but the thing is i dont crib about it

 

[Bharat Ek Khoj]

Rural Poor are more street smart compared to the urban rich.

I would give this a 100 Likes.

 

[Sakal Gharelu Ustad]

Government knows something which we don't, this move doesn't seem to be a decision taken in desperation, but a decision made with the confidence that the general public won't get effected/hurt. Rural Poor are more street smart compared to the urban rich.

Majority of genuine old notes have found their way into the banking system.

Yeah, genuine are all in!

So you are happy to screw those people who just waited for lines to get shorter and exchange later?

 

[Sakal Gharelu Ustad]

Every one is facing problems even i faced issues i almost missed a flight because the atms were not working and i had to go to my local sbt branch and wait there in the quaue to get the cash but the thing is i dont crib about it

And so?

Stop giving straw-man arguments. You might not have value for your time, does not mean everyone should stop valuing their own!

 

[Sakal Gharelu Ustad]

And there are many like these. Even NaMo fans!!

 

[Bharat Ek Khoj]

Nothing wrong to take a leave for a day and standing in queue to save your hard earned money. Also depositing money is not that time taking, specially for senior citizens.

Besides, the oppositions have such weak points, that Modi supporters arguments sound sane most of the time.

 

[VIP]

And there are many like these. Even NaMo fans!!

I have seen the queues by my naked eye and frankly, now they're getting shorter. The day demonetisation announced, many here understood that it's gonna be difficult for 1-2 months. The queues are longer in SBI but relatively very shorter in other banks, it's virtually not present in some screw up banks like OBC. I tell you, now banks do have cash, they don't fill up the ATMs because they want to fill up their chest 1st and then the ATMs, what are you seeing now is the hue and cry of queues outside ATMs, not the banks. @ weeks more and situation will become very near to normal. GOI knows this better than me and you, that's why they have taken this measure. Meanwhile, Kishor Bhajiyawala's 2000 crore wealth have been seized and that's the talk of the town and people acknowledging that this gamble has worked and many are still scared of GOI now, as I tell you Modi won't stop from here, he will hit hard to benami properties, this is just the beginning.

 

[VIP]

Read the whole thread and see what's happening, 1 or 2 incidents doesn't mean people are angry. People who are angry are none other than the Modi haters as you can see on our forum.
This move will surely be remembered as Modi vs Black money in the future and people won't buy any argument from opposition barking Modi has done nothing for black money.

 

[VIP]

Nothing wrong to take a leave for a day and standing in queue to save your hard earned money. Also depositing money is not that time taking, specially for senior citizens.

Besides, the oppositions have such weak points, that Modi supporters arguments sound sane most of the time.

Modi said give me 50 days, people have given and many have returned to normalcy, the remaining pocket areas will be filled up in couple of weeks. My father is in radhanpur rural areas and he told me that here banks are giving 24k, what's these all fuss about in media ?? Only major problem is ATMs, I hope they'll be filled up asap.

 

[VIP]

Demonetisation actually realized us many that how we were over spending behind the things which were not needed

 

[sayareakd]

Demonetisation actually realized us many that how we were over spending behind the things which were not needed

Yeah GDP also go down.
We can very well recover from loss. But ultimate effect will be on poor.

 

[Bharat Ek Khoj]

Only major problem is ATMs

Yes, it is actually a major problem, still.

 

[VIP]

those who have black money have already clean it................

Bhai, even if 15% are affected by this move, people would welcome it overwhelmingly. And I tell you, many won't be spared or will be hurt a lot. Wait and watch, these raids have yield many hoarders in prison, never happened before. This is what people see. People know GOI can't touch 100%, even a small gain would earn a larger respect because nobody has actually taken any action against these people.

 

[VIP]

Yeah GDP also go down.
We can very well recover from loss. But ultimate effect will be on poor.

The poor you are talking about are the major survivor of this country. This effects are transient as we all know.

 

[Sakal Gharelu Ustad]

The poor you are talking about are the major survivor of this country. This effects are transient as we all know.

On BM as well. 2000 note and gold zindabad!!

 

[Eastman]

I have withdrawn 10k x2 times and active atms are not much of an uncommon site in my place, more over i do Pos transaction on every possibe means from grocery to filling up fuel....not all banks around are full of rush and even those on rush are lined up for withdrawals , deposit are no rush...I am a common man. I dont spend like more than 24k in cash in a month, where 24k is permitted for one week.