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In India : scrapping of Rs 500 and Rs 1,000 notes


yota691
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Nov 8 Indian Prime Minister Narendra Modi on Tuesday announced that 500 and 1,000 rupee banknotes would be withdrawn from circulation at midnight, saying it was part of a crackdown on rampant corruption and counterfeit currency.

The surprise step appears designed to bring billions of dollars worth of cash in unaccounted wealth into the mainstream economy.

Below are comments from company and bank executives as well as market participants.

 

NIRMAL JAIN, CHAIRMAN, INDIA INFOLINE

"It is a very powerful measure to curb black money. Mr. Modi has kept his promise of taking stern measures against black money.

"It will have deflationary impact in general and more specifically on real estate prices and make homes affordable, and is indirectly a boon to honest tax payers."

 

SARAVANA KUMAR, CIO, LIC MUTUAL FUND

"If you look at India's economy point of view it's a very good measure. It's a very strong and bold step.

"Inflation will moderate and it's going to control the fiscal deficit. Black money will come down drastically."

"Since inflation is going to moderate it's good for the bond markets as well. It's good for the equity market, currency market and bond markets."

 

CHANDA KOCHHAR, MD & CEO, ICICI BANK

"I welcome the announcement made by the PM to derecognise 1,000 and 500 rupee notes. It is perhaps the most significant move ever taken to curtail the parallel economy. This move will give a sharp boost to all formal channels of payment, which in turn, will help the formal economy to grow."

 

K.V. KARTHIK, PARTNER, DELOITTE

"By phasing out 500 and 1,000 rupees notes the government has taken the fight against domestic black money to the next level.

"In the backdrop of other developments such as the Black Money Act, voluntary disclosure scheme and the introduction of Benami Transactions (Prohibition) Bill, this is a significant change, as people will have to provide an ID while exchanging the notes going forward.

"This way, the government will be able to identify undisclosed income and can be considered akin to a forced disclosure scheme."

 

ANUJ PURI, CHAIRMAN & COUNTRY HEAD, JLL INDIA

"The banning of higher currency notes is a major move which will help curb unaccounted-for cash in the real estate sector.

"We have just witnessed a tremendous step towards increased transparency in the Indian real estate industry. The effects will be far-reaching and immediate, and shake up the sector in no uncertain way.

"Stricter measures against black money have for long been required to help bring about greater transparency, give the Indian real estate sector more credibility and make it more attractive for foreign investors.

"Black money deals are more common on the unorganized market, but this practice has, in fact, been on the decrease with greater awareness on the part of buyers. Before too long, the caricatured version of black money driving Indian real estate is no longer applicable."

 

PROF. SEBASTIAN MORRIS, FACULTY, IIM AHMEDABAD

"It's a great move in terms of putting a sudden break to black money. It's come now because, I think, the economy is at a slow growth and jingoism hasn't worked.

"There is a huge amount of black money stashed away in the form of currency in India. That will get affected if they really implement this correctly. In the short run, there would a huge negative impact on the economy.

"The negative impact would be huge on demand. The economy which is growing at probably about 4 percent will turn negative for a while and real estate would be down. A whole lot of investor confidence would come down particularly at the SME, manufacturing level. But in the long run it may be good actually."

GAGAN BANGA, VICE CHAIRMAN & MD, INDIABULLS HOUSING FINANCE LTD

"It's a very innovative mood. No gain without pain. Extremely good for housing finance companies as element of cash will reduce and formal credit demand will increase."

 

SAURABH AGRAWAL, CEO & CO-FOUNDER, ZEBPAY

"It is a great move by Mr. Modi to curb money laundering and counterfeiting. This will mark the beginning of digital currency era and bitcoins have a huge potential to grow and eradicate black money totally out of the system. We foresee immense movement in our space." (Reporting by Devidutta Tripathy and Abhirup Roy; Compiled by Rafael Nam)

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Currency Reset In India Causes Panic and Chaos With Massive Hit On Black Market

In a stunning move that shocked many people In India, the government decided without warning to make all 500 and 1000 rupee valueless. This while not preparing for this move and printing money for to exchange at the banks has created a panic in this country.

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I am hoping  the Iraq  central bank  doesn't  go this route !    we need  the dinar too come out  at a  set  value ,  say  at  ---  .10 cents ---  and be tradable  internationally !  I think what  the  indian central is doing  is  pulling in  every  single  large note  as fast as it can ,  send out lower notes  and after set time  ,  the large note will be worthless ,   and  I think the set time is  very fast turn around !   { what  we   might see ,   Iraq central  a value  set at  a  decent amount , large notes brought in ,  and exchanged  for lower notes , and  soon after  the    large notes will be   off the  streets ,   and  the value of dinar  will take off  ---  just  my  thinking  }    ........    if  we  see what  india  is doing  we are  washed up  :(   and  this  has been for  nothing

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21 hours ago, climber7 said:

The problem is--in the article I posted this morning--it says the larger currency was rendered worthless. 

I really hope Iraq isn't planning on the same strategy. 

They aren't worthless.... 

3:01

In India people hasten to get rid of the 500 and 1000 rupees papers that will soon become useless.

In India people hasten to get rid of the 500 and 1000 rupees papers that will soon become useless.Our office is in New Delhi Director Ravi Agrawal Aoavi directly from the street near the ATM. This row behind you, it's for people who are rushing to get the money.

Ravi Agrawal: 
Yes , they are as well, a very long row extends from the rear, and if the camera turned to the second, Somshee a little to the left, you will see that the grade spans, and extends toward the left and continue finally up to the ATM. This ATM normal, not characterized by anything, but it includes a new sheet of the 2000 and the 500 rupees , which was launched a few days ago.

Every 10 or 15 minutes, up a truck with more money, while people get new papers. I spoke with many people saying they have been waiting for three or four or five hours in a row in an attempt to get money. Why come here and what exactly is it, let 's see this report. 
 
Kamal Gupta runs this business since 43 years. It 's typical for parents shop sells everything from milk to shampoo. He says the sales today dropped to less than half.

Agrawal: 
- "Do I pay the 500 rupees paper this?"

What about this?

Kamal Gupta, a businessman: 
" The whole was canceled by the government . "

It all started on Tuesday when Indian Prime Minister Narendra Modi announced a surprise announcement to the nation. It is that the papers of the 500 and the Rs 1000, the two largest papers, will Tzhban from circulation to replace misplaced papers two new 500 and 2000 rupees.The reason? A crackdown on counterfeiters and tax evaders.

In family stores such as this, which sells many kinds of products, there are no machines to use credit cards. All financial transactions are in cash, and this is not unusual across the country. Experts say that 90% of the entire financial operations in India are in cash. Even for expensive jewelry, people are paying in cash, and that's what pays the government for change.

Taxes are one of the reasons, in the Three percent of Indians pay income taxes. This is due to the high tax barrier, but also because of the difficulty to track such a large number of cash payments is recorded.

The main objective of the government are wealthy tax evaders, they are people who accumulate money in the literal sense of the word. But the middle class is the other damaged this week.

We have a tour around some of the banks in New Delhi. Long queues of men and women stand to replace the old leaves new. Yet they can replace the equivalent of 4,000 rupees, or just $ 60. We stopped to talk to them.

This man says that his son would marry tomorrow he needs more money. However, the sudden laws spoiled his plans.

This woman says that step is appropriate, but happy because the tax evaders will face this campaign.

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2 hours ago, yota691 said:

They aren't worthless.... 

 

3:01

In India people hasten to get rid of the 500 and 1000 rupees papers that will soon become useless.

In India people hasten to get rid of the 500 and 1000 rupees papers that will soon become useless.Our office is in New Delhi Director Ravi Agrawal Aoavi directly from the street near the ATM. This row behind you, it's for people who are rushing to get the money.

Ravi Agrawal: 
Yes , they are as well, a very long row extends from the rear, and if the camera turned to the second, Somshee a little to the left, you will see that the grade spans, and extends toward the left and continue finally up to the ATM. This ATM normal, not characterized by anything, but it includes a new sheet of the 2000 and the 500 rupees , which was launched a few days ago.

Every 10 or 15 minutes, up a truck with more money, while people get new papers. I spoke with many people saying they have been waiting for three or four or five hours in a row in an attempt to get money. Why come here and what exactly is it, let 's see this report. 
 
Kamal Gupta runs this business since 43 years. It 's typical for parents shop sells everything from milk to shampoo. He says the sales today dropped to less than half.

Agrawal: 
- "Do I pay the 500 rupees paper this?"

What about this?

Kamal Gupta, a businessman: 
" The whole was canceled by the government . "

It all started on Tuesday when Indian Prime Minister Narendra Modi announced a surprise announcement to the nation. It is that the papers of the 500 and the Rs 1000, the two largest papers, will Tzhban from circulation to replace misplaced papers two new 500 and 2000 rupees.The reason? A crackdown on counterfeiters and tax evaders.

In family stores such as this, which sells many kinds of products, there are no machines to use credit cards. All financial transactions are in cash, and this is not unusual across the country. Experts say that 90% of the entire financial operations in India are in cash. Even for expensive jewelry, people are paying in cash, and that's what pays the government for change.

Taxes are one of the reasons, in the Three percent of Indians pay income taxes. This is due to the high tax barrier, but also because of the difficulty to track such a large number of cash payments is recorded.

The main objective of the government are wealthy tax evaders, they are people who accumulate money in the literal sense of the word. But the middle class is the other damaged this week.

We have a tour around some of the banks in New Delhi. Long queues of men and women stand to replace the old leaves new. Yet they can replace the equivalent of 4,000 rupees, or just $ 60. We stopped to talk to them.

This man says that his son would marry tomorrow he needs more money. However, the sudden laws spoiled his plans.

This woman says that step is appropriate, but happy because the tax evaders will face this campaign.

Thanks for the clarification Yota

Appreciate your work on here

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Economy News / Continue ...
 
 
 
News reports said that US banks stopped dealing in Indian Rupees in the wake of the Indian government's decision to cancel the banknotes of categories 500 and Rs 1000 in its efforts to fight corruption, fraud and tax evasion.
Bloomberg reported that after the decision of the Prime Minister of India, Narendra Modi to cancel banknotes from circulation categories 500 and Rs 1000 last week, banks in the United States stopped accepting Indian banknotes.
Spokesmen for some of the major US banks such as JVC. Me. Morgan Chase, Citigroup, the bank is working with vendors who provide the Indian rupee to customers, and these sellers now do not offer these banknotes.
While Wells Fargo Bank, said he could not provide the rupee to its customers at the moment, Bank of America said that it currently does not change the rupee.
The citizen called «Aruna Desai» (76 years) in the state of New Jersey «If you have euros, can go to any bank to change it, but if you have Indian rupees I do not think that any bank will accept you». 
 
 
mm
Views 2   Date Added 20/11/2016 - 11:14   Last updated 11/20/2016 - 10:34   No. Content 5876
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No one wants Indian 'kachra' in Karbala in Iraq

By Faisal Tandel | Posted 19-Nov-2016
 

 

Devotees from city on a pilgrimage to the holy place in Iraq recount their hardship after the ban on Rs 500 and Rs 1,000 notes

 

 
 
 
 

Abbad Dalal, Aarif Navsariwala and Abdullah Tambawala

 

Abbad Dalal, Aarif Navsariwala and Abdullah Tambawala

 

On a holy trip to Karbala in Iraq, devotees from India got a bolt from the blue, due to the demonetisation back home, after vendors refused to take their rupees, calling it worthless.

Speaking to mid-day, some of those visiting, from Mumbai, spoke about the hardship they had to face during their two-week trips after Rs 500 and Rs 1,000 notes were banned. They said the vendors there referred to Indian currency as 'kachra' and refused to deal in rupees.

Most devotees, Shias and those belonging to the Dawoodi Bohra community, visit Karbala and Nazaf to mourn the death of Imam Hussain, the grandson of Prophet Mohammed. The event is known as 'Chehllum of Imam Hussain', wherein thousands from around the world fly to Nazaf and walk to Karbala, which is around 80 km away, remembering the martyrdom of Imam Hussain and his followers some 1,400 years ago.

Local embarrassment
Bhendi Bazaar resident Abbas Dalal (24), who has completed his electrical engineering and is doing his M.Com, was one of those stuck without means when he visited in the last week of October. "We were fortunate that His Holiness (Syedna Mufaddal Saifuddin) provided us with food and shelter. I visit the holy place often; this is the first time we had to face so many difficulties," he said.

"We had carried around Rs 15,000 for local shopping and internal transport expenses. As soon as the announcement was made on November 8, within no time, rupee was banned there. Vendors and exchange people stopped taking Indian currency and started asking for dinar. And we didn't have any dollars or dinars on us. Luckily, we had His Holiness, who supported us and others and offered whatever help possible."

Dalal said he was surprised when he got the news from shopkeepers. "'Your government has banned the currency, we don't trust your money anymore' is what they were saying," he recounted, adding that no one was ready to accept even R100 notes, even though Rs 500 and Rs 1,000 were the only ones banned.

"A few vendors even said 'if you are from India, please move, we don't want to sell you anything', which was quite embarrassing." Dalal, however, said troubles notwithstanding he supported the Indian government's decision and "looked forward" to a better India.

Another devotee, Abdullah Tambawala (32), a businessmen and a Mumbai resident, is still in Karbala. Tambawala, who went on November 8 along with six of his cousins, missed the news before leaving, and hence, wasn't aware about the currency issue. "We are happy that His Holiness gave us food and other facilities. We don't know how we would have managed otherwise. No one wants to see rupee here anymore; these notes on us are merely paper now," he said.

Aarif Navsariwala (46), who owns a gold imitation business, reached Karbala with his wife on November 6 and got the news soon after. "The Arabs here refused to accept Indian currency of any denomination. They don't know Hindi or English, but when any one of us would take out rupees, they would call it 'kachra' and ask us to move on. I had to borrow $100 from a friend to survive a week," he added. Navsariwala said the government didn't issue a proper notification and that's why people are suffering.

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GM Master Yota. I was wondering, do you remember several yrs ago when there was several articles that stated how that India and the CBI were doing currency swaps? I have tried  to find one of those articles and bring it over here, but I can't find them. Somehow I think that would have some bearing in this story line. What if India has a bunch of reserves in dinar and that an Iraqi RV would also lift the value of the Rupee so much so that they don't wanna leave the larger notes on the streets? 

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20 minutes ago, ladyGrace'sDaddy said:

GM Master Yota. I was wondering, do you remember several yrs ago when there was several articles that stated how that India and the CBI were doing currency swaps? I have tried  to find one of those articles and bring it over here, but I can't find them. Somehow I think that would have some bearing in this story line. What if India has a bunch of reserves in dinar and that an Iraqi RV would also lift the value of the Rupee so much so that they don't wanna leave the larger notes on the streets? 

Very Interesting Indeed !

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