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

[Banglar Bir]

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The Indian Government Just Eliminated 80% of the Country’s Cash
Home»Business»The Indian Government Just Eliminated 80% of the Country’s Cash
November 15, 2016 | Shaun Bradley
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ANTIMEDIA) The Indian government took unprecedented action last week when it eliminated 500 and 1,000 rupee paper notes from its financial system. The change occurred essentially overnight.

Indian Prime Minister Narendra Modi initiated the policy on Nov. 8th and has actively defended his position since. The announcement was made under the guise of cracking down on corruption and black money, but the surprise caused bank closures across the country.

The old bills immediately lost their status as legal tender, and authorities ordered citizens to exchange them for new ones within 50 days. The 500 rupee is only worth around $7.36, making the Indian government’s move the equivalent of the U.S. government banning ten and twenty dollar bills. Even so, 500 and 1,000 rupee notes were previously the largest denominations in the country.

ATMs were shut down temporarily, which allowed the fear of uncertainty to make its way into the public psyche. But even as the secrecy of the plan has inspired a wave of distrust in the population, things have remained relatively calm thus far. In spite of this calm, India’s case is likely only the beginning of further financial repression in an encroachingwar on cash.

Prime Minister Modi insisted he felt sympathy for the struggle of the average citizen but argued the move will ultimately benefit the poor.

“I am aware you are facing difficulties with 500 and 1,000-rupee notes ban. I understand the inconvenience…I am really pained by the inconvenience and that is why I am working tirelessly to help people overcome this situation. I will never let anyone loot money that belongs to India’s poor.”


Financial institutions have struggled to keep the situation under control while they attempt to meet the government mandate. The unexpected change has driven millions to banks to exchange their cash holdings as Indians form huge lines to obtain what little cash is available; the logistics of exchanging the larger bills for smaller denominations has drained cash inventories, and the Reserve Bank of India is printing new money at full capacity to make up for the shortage.

The banned currency accounts for nearly 80% of the total outstanding notes in circulation throughout the Indian economy, and in an effort to calm mounting frustrations, withdrawal limits were raised from 20,000 to 24,000 rupees per week.

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Guru Birajdar, a lawyer, spoke about the hardships people are facing in everyday life.

“I can’t even buy a cup of tea…I didn’t go to work today because I had no cash. All my money is in 500s and 1,000s so I had to come straight to the bank this morning. I had two 100-rupee notes in my wallet on Tuesday night, but I used that up yesterday,”he said, as reported by the Guardian.

Though the sudden and sweeping action was sold as a response to crimes like tax evasion, it was more than likely a reaction to the series of problems Indian banks are facing. The amount of paper money customers have been pulling from their accounts has jumped 15% since last year, making it increasingly more difficult for the central bank and government to maintain control over the financial markets.

By removing so much of the currency supply at once with the ban on 500 and 1,000 rupee notes, the government is holding the life savings of the nation hostage. If citizens want to take out their savings, per the new policy, the paper bills no longer exist to do so. This forced compliance with this new decree should be viewed as nothing less than extortion.

Withdrawing money is one of the few forms of protest individuals can exert against financial repression, and the immense lines at the banks show Indians are bracing for inconvenience and hardship in the future.

This event is the canary in the coal mine for those concerned with the crimes committed through government and central bank collusion. Norms in the financial world are shifting rapidly, and as technology’s role in the monetary system increases, those who want to carry out transactions with something as archaic as cash will be inevitably seen as suspicious.

The challenges that have been thrust upon Indian citizens may be new, but they highlight a dangerous trend that governments may utilize to eliminate anonymous transactions. By removing the only way people can physically take money out of their accounts by limiting customers to withdrawals of small bills, these financial institutions have essentially seized the public’s assets. The long-term consequences of this level of control likely won’t be felt until another crisis in confidence, like the one in 2008, hits the global markets.

This event in India reveals how easily money can become inaccessible and that there are always risks in where you choose to keep your savings.

This article (The Indian Government Just Eliminated 80% of the Country’s Cash) by Shaun Bradley is free and open source. You have permission to republish this article under a Creative Commons license with attribution to Shaun Bradley andtheAntiMedia.org

 

[Banglar Bir]

India rupee ban: Currency move is 'bad economics'

Soutik Biswas India correspondent

• 14 November 2016
  
• From the section India
• http://www.bbc.com/news/world-asia-india-37970965

Image copyrightAFP
Image captionIndia scrapped 500 ($7.6) and 1,000 rupee notes to crack down on corruption
India's dramatic move to scrap 500 ($7.60) and 1,000 rupee notes is poor economics, a leading economist says.

Kaushik Basu, the former chief economist for the World Bank, says the "collateral damage" is likely to outstrip its benefits.

The overnight ban on the notes last week was intended to crack down on corruption and so-called "black money" or illegal cash holdings.

But it sparked scenes of chaos outside banks and ATMs.

Low-income Indians, traders and ordinary savers who rely on the cash economy have been badly hit with hordes thronging banks to deposit expired money and withdraw lower denominations. As the anger mounted, the government raised limits on cash withdrawals on Sunday.

• Garlands of money and other images of a cash crisis

• How India's currency ban is hurting the poor
• Desperate housewives' scramble to swap secret savings
• 'No customers': Indians react to currency ban
• Holders of notes abroad face tough battle
• Can currency ban really curb black economy
• Media caption Old 500 and 1,000 rupee notes are no longer in circulation

But some economists say the move will have a limited impact as people will simply begin to accumulate black money in the new currency as soon as that becomes available.

The government hopes this will bring cash worth billions of dollars in unaccounted wealth back into the economy. The two notes accounted for more than four-fifths of the currency in circulation.

Prof Basu, who now teaches at New York's Cornell University, says India's Goods and Services tax, was "good economics, but demonetisation is not".

"Its economics is complex and the collateral damage is likely to far outstrip the benefits," he says.

Image copyright AFP
Image caption Kaushik Basu says the move could hurt India's economy
What Prof Basu, who was chief economic adviser to the previous Congress government, means is that this "demonetisation" just witnessed in India is at best, a one-time flushing out of the system and the return of black money is likely if not inevitable.

Many economists say the costs of such a one-time "flush" will be huge.

They say hundreds of thousands of ordinary people (including farmers who do not even have bank accounts) who hold cash but not black money will get caught out and the fear of harassment by officials could trap them in a bureaucratic net they don't know how to deal with.

So it is possible that all this achieves is a sudden curtailment in the total money supply, effectively a kind of contraction of the economy.

'Helicopter drop'
Economists have long talked about "helicopter drop" of currency - printing large sums of money and distributing it to the public in order to stimulate the economy.

India's decision to scrap high denomination notes is simply the reverse and according to economist Prabhat Patnaik the government's move "betrays a lack of understanding of capitalism".

"Typically, what happens in capitalism in a situation like this is that there would be a new business opening up about how to change old currency notes into new ones... A whole range of people would come up who will say you give us 1000 rupees and we will give you 800 rupees or 700 rupees or whatever. Consequently, instead of curbing black business it will actually give rise to the proliferation of black business," he told The Wire news site.

Image copyright AFP
Image caption Long queues at many banks were making it difficult to make withdrawals
But not all experts agree that it is such a risky move.

"India now operates under a monetary policy regime known as inflation targeting. If a portion of the stock of currency in circulation, consisting of currency and demand deposits gets 'burned', metaphorically or literally, the Reserve Bank of India, the central bank, can in principle fully offset this through what economists call 'open market operations'," Vivek Dehejia says.

"These involve purchasing bonds from the markets and injecting money (and therefore liquidity) into the markets in return. This is standard operating procedure for central banks."

To put it more simply: suppose a warehouse of cash owned by someone goes up in flames and the money stock drops. The central bank, economists say, can augment the money stock.

Image copyright REUTERS
Image caption India is a predominantly cash driven economy
The loser is the individual whose money went up in flames - in other words, by analogy, someone holding illicit unaccounted cash that cannot be converted into new currency or deposited.

"There will be short run adjustment costs as the old notes are replaced by new ones, but I see no medium to long term impacts on growth, inflation or other pertinent macroeconomic variables," says Prof Dehejia.

"The gains will be a one-time tax on black money and a possible disincentive for future black money accumulation, in the event that there is a prospect for future demonetization."

He, for one, is confident this move will achieve what it needs without damaging the economy.

 

[Banglar Bir]

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The War On Cash Goes Nuclear In India, Australia and Across The World
NOVEMBER 15, 2016 / JEFF BERWICK / 4 COMMENTS
https://dollarvigilante.com/blog/2016/11/15/war-cash-goes-nuclear-india-australia-across-world.html

We are living in a world where paper fiat money is becoming a novelty.

In Australia, Citibank has just become the first to declare that it no longer will accept notes or coins. Only digital transactions. This follows on the heels of India banning large cash denominations.

The cash-oriented changes of these two countries are especially troubling in light of the eventual plans to phase out large denomination euro notes and the US 100 dollar bill by 2018. Just as the Economist predicted nearly 30 years ago, the world is going cashless.

A few days ago we wrote (here) about how the Reserve Bank of India eliminated 500 and 1000 rupee banknotes from the money supply. These notes represent 20% of the cash value in circulation and 80% of cash outstanding in the country.

The main reason India has been combating cash in conjunction with selling off gold, is because people in the “black” or “free” Indian marketplace were supposedly circumventing the financial system by conducting business and then slowly buying physical gold with large denomination bills.

Since the transactions were not being tracked or monitored, it was much easier to hide earnings from the government trying to extort them. So naturally, being a greedy crime syndicate that operates parasitically on extorted funds, the government is putting a stop to something that it views as an ongoing, expanding threat.

Of course, there’s a reason why Indian women wear their wealth – gold and silver – on their bodies. Indians have been through this before. Indian societies are very old, perhaps the oldest in the world, and they’ve gone through numerous metals confiscations in the past.

Of course, what’s going on is not being described as a “confiscation.” So far, reasons to remove cash are not coordinated. In India, it’s because of “corruption.” In Australia, it’s supposedly because customers simply don’t want or need cash.

Citibank’s Australian head of retail banking Janine Copelin stated, “We have seen a steady decline in the demand for cash services in our branches — in fact less than 4% of Citi customers have used this service in the last 12 months.”

Which is both believable and possible considering most people don’t understand the significant benefits of paying with cash or don’t care that the government and banks are able to track their every move and transaction. Then again, Citi could simply be exaggerating.

It’s the same mentality that people inside the US had and continue to have after they learned that the NSA was tracking all their information after Edward Snowden’s revelations.

A lot of people responded by saying that they have nothing to hide and therefore nothing to worry about. “Let the government track me all they want, we have to stop the criminals and terrorists”.

The criminals and terrorists ARE the government, dummies. But, that’s what government indoctrination camps (schools) are for.

So starting November 24th, Aussies who bank with Citi, will be forced to use ATMs to withdraw their money – which besides being more inconvenient for customers, will likely also cause them to have to spend much more money on ATM fees.

Perhaps the Aussies liked what they saw in India, though that seems hard to understand. The Indian economy is heavily reliant on revenue from tourism starting in November. The recent attack on cash is squelching the industry by turning away foreigners who are having trouble exchanging their money for the local currency the minute they land in the airport.

According to UBS Group AG: “Australia should follow India’s lead and scrap its biggest bank notes.”

On Monday, UBS analyst Jonathan Mott, said:

“Removing large denomination notes in Australia would be good for the economy and good for the banks. Benefits would include reduced crime and welfare fraud, increased tax revenue and a ‘spike’ in bank deposits.”

Increased tax revenue, by the way, is only a “benefit” to the government, not anyone else.

This is all part of an increasing trend to move toward a society entirely bereft of cash. It is ongoing in Sweden, as well, where you cannot pay for bus fare with cash. Not to mention that of Sweden’s 1,600 bank branches, about 900 no longer keep cash on hand or accept cash deposits.

In Uruguay, residents can no longer buy gas with cash in the evening. Eventually, Uruguay plans to forbid employers from paying workers in cash. Everyone working in Uruguay will have to receive funds in bank accounts. No doubt this will be replicated elsewhere if it comes to pass.

Meanwhile, according to “experts” Sweden will be entirely cashless in less than five years. And the Swedes appear to be progressing quickly toward that stated goal with circulation of their Swedish krona having fallen from around 106 billion in 2009 to around 80 billion this past year.

All these cashless initiatives are a part of a longstanding globalist banking plan to move toward a one-world currency. Though it will be said that cash is being gotten rid of to cut down on things like terrorism, tax evasion, and financial crime, the real reason is to consolidate power.

It is certainly likely, as well, that the “cashless” move has been advanced by negative interest rates. As people face such rates, they are likely to try to remove their cash from banks or convert it to gold and silver – rather than hold cash in banks while paying for the privilege.

And, yes, there are other “real” reasons as well. With cash increasingly becoming digitized, it makes it easier for the real criminals (government and central bankers) to exercise more totalitarian control in tracking transactions.

We won’t hear about these reasons in the mainstream media. Instead, we’ll be informed that people “aren’t interested” in cash or that cash is innately a mechanism of corruption.

Hopefully as this progresses, people will start to raise their voices in opposition. The idea that governments can track your every transaction and that you cannot hold cash in alternative forms of money such as gold and silver is extremely authoritarian.

Already, Indians are not going down silently. A letter to the Indian Banks’ Association (IBA), All India Bank Officers’ Association (AIBOA) and All India Bank Employees Association (AIBEA) stated that the decision to withdraw the high-value notes was taken without proper planning or preparation.

“A chaotic situation is prevailing at the bank branches and this is unbearable for both customers as well as bank employees and officers,” said S Nagarajan, general secretary of AIBOA and his counterpart at AIBEA, in the letter to IBA, the apex body of bank managements.

Plus, apparently there have already been some 25 deaths due to Indian demonetization in just six days after the decision. In the Bulandshahr, branch of Kailash hospital, owned by union culture and tourism minister Mahesh Sharma, a child died because the parents had only old currency notes. The hospital wanted them to deposit a Rs 10,000 cash advance for admission. Of course, the hospital has denied the charge.

Then in Surat, Gujarat, a middle aged mother of two committed suicide because she wasn’t able to buy rations to feed her family. The shops she used, refused to accept the old currency notes.

Governments like to tell you that their actions are for “your own good,” but it never works out that way. If governments ever really gain total effective control over money and your use, expect to be even more deeply impoverished than you already are.

Luckily there are other options. Bitcoin is certainly one of them. And, for this reason, we just released yet another book, “Bitcoin Basics: A Guide for Cryptocurrency Newcomers” which is free to TDV subscribers.

There are currently riots occurring in Greece upon O’Bomber’s arrival. The Greek banking system has been nearly shuttered now for years. Cyprus depositors found their funds confiscated over one weekend in 2013. Italian and German banks are on the brink of failure. Indians are dying in the streets amidst mass chaos as the government has demonetized much of their currency. And in places like Sweden and Australia they are quickly moving to get rid of cash as well.

Imagine if in all these places people used bitcoin for transactions. All of these things would be a non-event. Unfortunately, most still are unaware of alternatives. For those who are aware, like TDV subscribers since 2011 when bitcoin was at $3 (currently at $700), things are likely, much better.

As more people wake up to find their currencies demonetized or their banks closed, they are going to look into things like bitcoin which will only drive the price exponentially higher.

Subscribe to TDV here, today, to get access to our new bitcoin book as well as our worldwide community of dollar vigilantes who are happy to help you with any questions you may have. And receive our bi-monthly newsletter with the best information, advice and analysis on how to survive and profit from this ongoing war against your cash, privacy and liquidity.

Don’t wait until you have to line up at out-of-service ATMs in a vain attempt to get money you have, but cannot possess.

State Bank Of India Writes Off Loans Of 63 Wilful Defaulters, Rs 1201 Crore Of Vijay Mallya Also Written Off
NOVEMBER 16, 2016
BY THE LOGICAL INDIAN

• https://thelogicalindian.com/news/sbi-writes-off-loans-of-63-wilful-defaulters/
  
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Source: DNA | Image Source: businessinsider | morungexpress
SBI Writes Off Loans Of 63 Wilful Defaulters

Write off by SBI
The State Bank of India (SBI) seems to have started a clean-up of its balance sheets by writing off loans worth Rs 7,016 crore owed to it by 63 accounts. As on June 30, 2016, SBI has already written off Rs 48,000 crore worth bad loans. Writing off a loan means that collecting the money back from the defaulters is up to the bank. But if the bank is unable to collect the amount, the burden is borne by the public exchequer.

What do the documents reveal?
63 accounts have been fully written off, 31 partially written off and six have been shown as NPAs. SBI has adjusted its balance sheets by moving the Rs 7,016 crore to an Advance Under Collection Account (AUCA) .

The top five defaulters
AS reported by DNA, following are the top five defaulters:

• Kingfisher Airlines owes a total of Rs 6,963 crore to 17 banks, of which SBI’s loan is Rs 1,201 crore. Recently, an e-auction of Mallya’s Kingfisher Villa in Goa failed to find any buyer. Sources said that SBICAP Trustee did not get earnest money deposit (EMD) from even a single bidder.

• KS Oil, once a leading edible oil player under the brand names Kalash and Double Sher in the mustard oil segment, turned defaulter. KS Oil has allegedly indulged in the diversion of funds from its core business. The company invested huge amounts on plantations in Indonesia and Malaysia but failed to get the expected returns. Though the loan account has been restructured, the company has been unable to revive itself. Lenders have also withdrawn the company from CDR (corporate debt restructure). KS Oil was declared NPA in 2013 with effect from September 30, 2011. As with Kingfisher, the recovery effort was futile as e-auction of five units failed due to lack of bidders.

• The third in the list of write-off accounts, Surya Pharmaceutical, was named a wilful defaulter in 2013. The company allegedly indulged in fraud, diversion of funds in retail and education sectors. SBI has symbolic possession of eight properties and is struggling for another in Jammu and Kashmir. A forensic audit from E&Y tagged this a fraud account.

• Ajay Kumar Vishnoi’s promoted GET Power Ltd was declared wilful defaulter on August 23, 2016. The company’s mismanagement and the delay in projects led to trouble for the promoters.

• The fifth in the list, Sai Info, has dues of Rs 375 crore and was declared wilful defaulter on August 26, 2016. In June 2013, the company’s main promoter Sunil Kakkad absconded, but was brought back to India and arrested. Kakkad is now out on bail. The company has cancelled two high-value projects – from the Department of Posts and a Mumbai CCTV surveillance project – worth Rs 2,200 crore. This account has also been declared fraud. SBI could not get any recovery and could only get symbolic possession of some of the properties.

To know the name of other defaulters, please read the article here.

Other Aspect of Write-offs
The Supreme Court has called the write off ‘a big fraud’ and ordered the RBI to share with the names of the biggest defaulters. On Tuesday, the Parliamentary consultative committee constituted to study non-performing assets (NPAs) in the banking sector, has suggested that the government should name all the defaulters whose loans have been written off by state-owned banks. There is a need to bring more transparency in the system, and the list of all the defaulters whose loans have been written off be made public.

Process of Write-offs
Let’s assume that a person has taken a loan of Rs 1,00,000 from a bank. From bank’s point of view, the loan is an ‘asset’ and the interest that would have accrued from the person would have been ‘income’. In the bank’s balance sheet, the loan amount is shown as an asset so long as the account is considered normal. But if the person or entity stops repaying the monthly instalments, the bank will generate lower revenue due to lack of interest payment. But the loan remains as an asset as the bank still hopes that the person will pay back. But beyond a point, as per Reserve Bank of India (RBI) norms, if there is no income coming from an asset, the bank will have to first provide for the loss of the ‘asset’ and then eliminate it from its balance sheet. The loss incurred by the bank will be borne by the public exchequer. A major portion of it is done by the government which loses tax revenues as the losses are set-off against tax.


Write-offs
In a write-off, the bank includes bad debts as an uncollectible loss on its tax return. The write-off is also called a ‘charge-off’. The write-off reduces the bank’s earnings and thereby reduces its taxable income. This accounting procedure may reduce the bank’s overall tax liability, which is the goal of a write-off. The designation of the debt as uncollectible doesn’t mean the bank will never collect on it until that point.

You can read the full article here: www.dna.com

 

[GURU DUTT]

see my bangladeshi friend you have no idea about indian financial setup let me explain to you in layman terms

thing is as per estimate we have at least a 2.5 trillion $$ ammount worth money in circulation printed in 500 & 1000 bills since 1996 by RBI of which only 1 trillion(im talking about cash) is circulating in the economy both in white and black economy but rest 1.5 (as per estimate some 1 trillon is with hawalla transaction holders and .5 with corrupt beurocrats and politicians /which never comes in economy) and by this move GOI has attacked this 1.5 trillion $$s and add to that some .5 -1 trillion in fake currency (which all becomes piece of toilet paper from 9-11-2016)

now all the mafia and money launderers and there politicals backers and beurocratic helpers are feeling the real pain as they have lost there life savings and deu to this ruch the real estate and gold markets have started showing there faultlines and GOI had made arrengemnts before doint this surgical strike on black money

wait for dec 30 2016 dead line to end many of the people having tonnes of gold and benami properties gonna cry blood tears

 

[enquencher]

see my bangladeshi friend you have no idea about indian financial setup let me explain to you in layman terms

thing is as per estimate we have at least a 2.5 trillion $$ ammount worth money in circulation printed in 500 & 1000 bills since 1996 by RBI of which only 1 trillion(im talking about cash) is circulating in the economy both in white and black economy but rest 1.5 (as per estimate some 1 trillon is with hawalla transaction holders and .5 with corrupt beurocrats and politicians /which never comes in economy) and by this move GOI has attacked this 1.5 trillion $$s and add to that some .5 -1 trillion in fake currency (which all becomes piece of toilet paper from 9-11-2016)

now all the mafia and money launderers and there politicals backers and beurocratic helpers are feeling the real pain as they have lost there life savings and deu to this ruch the real estate and gold markets have started showing there faultlines and GOI had made arrengemnts before doint this surgical strike on black money

wait for dec 30 2016 dead line to end many of the people having tonnes of gold and benami properties gonna cry blood tears

This pure economics is not understood by people across the border.they try to undermine the move coz they have lost their stone pelters..their cattle smugleers ..and hawala operators.
Another reason is a hindu nationalist...has done it..islamic republics are having pain.

 

[GURU DUTT]

This pure economics is not understood by people across the border.they try to undermine the move coz they have lost their stone pelters..their cattle smugleers ..and hawala operators.
Another reason is a hindu nationalist...has done it..islamic republics are having pain.

thing is of 2.5 trillion $$S worth money minted by indian mint 1.5 is either with hwallla or corrupt politicians or beurocrats that never comes in the market and by one stroke NaMo and jaitley have waived off that dept from common indian tax payer and the real sp called big fishes will only start depositing money in the banks after second weak of december and the rough estimate of total deposit & exchange in all nationalised banks by then is 150-200 billon in deposits and 50 -80 billion in exchange

 

[Nabil365]

So has this helped?

 

[GURU DUTT]

So has this helped?

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

 

[boxer_B]

see my bangladeshi friend you have no idea about indian financial setup let me explain to you in layman terms

thing is as per estimate we have at least a 2.5 trillion $$ ammount worth money in circulation printed in 500 & 1000 bills since 1996 by RBI of which only 1 trillion(im talking about cash) is circulating in the economy both in white and black economy but rest 1.5 (as per estimate some 1 trillon is with hawalla transaction holders and .5 with corrupt beurocrats and politicians /which never comes in economy) and by this move GOI has attacked this 1.5 trillion $$s and add to that some .5 -1 trillion in fake currency (which all becomes piece of toilet paper from 9-11-2016)

now all the mafia and money launderers and there politicals backers and beurocratic helpers are feeling the real pain as they have lost there life savings and deu to this ruch the real estate and gold markets have started showing there faultlines and GOI had made arrengemnts before doint this surgical strike on black money

wait for dec 30 2016 dead line to end many of the people having tonnes of gold and benami properties gonna cry blood tears

How dare you ? Talking trillions in thread started by lungi. Who will be responsible if someone experiences cardiac arrest ?

 

[GURU DUTT]

How dare you ? Talking trillions in thread started by lungi. Who will be responsible if someone experiences cardiac arrest ?

lets quench there curiosity and let them know the truth and its just the first step and the jwellers and real estate barons and even people with large ammounts of benami properties are running like head less chikcens cause they very well know they are bieng watched and the next step is going to be taken very very shortly and thats all i can say but its gonna be huge

 

[1ndy]

see my bangladeshi friend you have no idea about indian financial setup let me explain to you in layman terms

thing is as per estimate we have at least a 2.5 trillion $$ ammount worth money in circulation printed in 500 & 1000 bills since 1996 by RBI of which only 1 trillion(im talking about cash) is circulating in the economy both in white and black economy but rest 1.5 (as per estimate some 1 trillon is with hawalla transaction holders and .5 with corrupt beurocrats and politicians /which never comes in economy) and by this move GOI has attacked this 1.5 trillion $$s and add to that some .5 -1 trillion in fake currency (which all becomes piece of toilet paper from 9-11-2016)

now all the mafia and money launderers and there politicals backers and beurocratic helpers are feeling the real pain as they have lost there life savings and deu to this ruch the real estate and gold markets have started showing there faultlines and GOI had made arrengemnts before doint this surgical strike on black money

wait for dec 30 2016 dead line to end many of the people having tonnes of gold and benami properties gonna cry blood tears

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.

 

[itachii]

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.

I think RBI will reprint the money that it didn't receive till the deadline and all that money goes in to the pocket of Finance ministry.

 

[cerilchan]

Good move must praise modi gov becos all corrupted people and black money even in india onlyway country progress

 

[cerilchan]

He have bring currency control please advise him hands off to him

 

[srshkmr]

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 money based on the Gold reserves it has . So if 500 (worth 3 lakh crore) and 1000 (6 lakh crore) is removed from the circulation then the currency used is very less which will get back into the governments treasury .

Now people have their own 500's and 1000's white money which is less than 50 % of the total money printed . so we get roughly 50% more boost in our economy