The Indian Government Just Eliminated 80% of the Country’s Cash

[GURU DUTT]

Hello Guru,

What will happen to 1.5 trillion money? Is it a loss to nation or that money could be reprinted in new currency notes? I don't understand economics, it is a genuine query not a troll post.

RBI prints or lends money based on gold reserves it has but im no economist my self but according to sources more than 70% of total 500 &1000 notes remain unused in economy and if they are taken out it takes out a lot of burden from the economy

but the real picture will only emerge post feb 2017

 

[Nabil365]

well it is very very inconvinient but it has made maoists the sepratists the mafias and anty state terror groups almost tooth less as all there activities have stopped as they carried out there work with help of cash most of which was funnelled into india through hawalla transactions and extortions and druck and human traficing trade and with one blow all these people and there beurcratic and politicals and corrupt police and judicaial police officals are suddennly left with huge heaps of toilet paper which they cant take to banks to be converted into white money

sure its just 20-25% of all the black money (rest 25% is in gold while 50% is in benami properties) but still its a huge huge blow and an avrage poor person knows it and after 1-12-2016 no one would remmber once he gets his paycheque

but what about the black money hoarders

So basically inconvenience in short term but beneficial in long term.Good work done by government then.