IMPORTANT: Reserve Bank to withdraw all pre-2005 currency notes from circulation

WTF????

I get that this is supposed to curb the black money(which, face it-everyone in India has), but seriously, this will be a big hassle. Now you'll have to check every note to see whether it's older than 2005.

:enforcer:

How many notes will the rich people(Netas like Mayawati); actors, businessmen will have to exchange

; truckloads I guess.

Reserve Bank to withdraw all pre-2005 currency notes from circulation - The Times of India

Akira said:
WTF????

I get that this is supposed to curb the black money(which, face it-everyone in India has),

everyone ? justify it

They don't stock notes at their homes. This will effect nothing.

Guys start collecting pre 2005 notes. You can sell it as a antique note.

to be honest, its a brilliant move..will keep a check on black money and the new notes are supposedly harder to fake. I actually believe this is a bold move by RBI. Anyways enough time has been given. Sure it will inconvenience people a bit but a small price to pay really.

i dont see how this will effect fake currency but already fake currency eill be legited now by rbi.......

Love the kind of headlines News channels put up.

"Rupya ho jaega Raddi".... really?... lol way to grab attention... :lol:

bubusam13 said:
everyone ? justify it

Sure. Maybe I was too generalising; I didn't mean to offend

. That being said, black money is accumulated by (almost) everyone who is not on a daily wage-or a monthy salary-where the income is in form of cheques, and the income tax is already deducted. With the insane rates of income tax(it's 30% for above 10lakh annual income), people are naturally hesitant of giving a hefty cut from their income to the government. That's why so many people have parallel accounts, tracts of property, investments in assets like gold or bonds; a way of storing the black money(in something other than cash).

Almost everyone in the upper middle class-and the High class-don't pay 100% of their income tax. That means everyone from a very-well earning shopkeeper, to a doctor(say,a surgeon)/laywer(with their own practices-not employed on a monthly salary), or some businessman who has a coaching institute of his own, or the big shots like Ambani have a LOT in black money. Our spearhead against Black Money-Baba Ramdev-has declared assets worth Rs 1100/- crores. And he bought an island worth 2 million pounds a few years back

. (I bet that he doesn't have a dime less than 3000 crores.)

bubusam13 said:
They don't stock notes at their homes. This will effect nothing.

You'd be surprised. While it's easy to say that a person can invest his/her black money in gold/property, it's truly not feasible to keep track of and maintain it all. More than a few keep it in cash. Iam not implying anything, ofcourse :wink:

The sh!tstorm over this will only grow in the upcoming days. The hassle does not lie in exchanging all the pre-dated notes you might have. It's in explaining where you earned them from-and whether the tax is paid.

BTW, I am not endorsing not paying taxes. Au contraire, one should always pay them. I am just putting forward my view of our society,albeit rather cynical.

There is a difference between Black money and Counterfeit money

bubusam13 said:
There is a difference between Black money and Counterfeit money

Uhh, I know?

I wasn't talking about counterfeit money at all. But this measure is really good to root all the fake notes out. Only question is, who will be responsible if you are caught with fake notes?? You can't possibly check each one of the notes before 2005(100s and 50s and whatnot).

Thank God, I never withdraw more than 200 Rs at a time from the ATM.

But seriously, how do they expect everyone to turn over their cash? Unless they are giving alternative notes in exchange for the old notes.

You can exchange the notes at any bank but the condition is that if they are more than 10 than you have to provide a indenting of yours. Elections are near I think it is a great move by RBI to get a hold on black money.

R

Brialliant move by the Central Banker. Kudos to its governor for taking this step.

It's a good move, i say..
For those, who don't know how to check:

*www.hindustantimes.com/Images/popup/2014/1/banknote500a.jpg

DeSmOnD dAvId said:
But seriously, how do they expect everyone to turn over their cash? Unless they are giving alternative notes in exchange for the old notes.

Ofcourse they will exchange the notes. -.-

bubusam13 said:
There is a difference between Black money and Counterfeit money

Point being?

Black Money is money gained from illegal activities. Counterfeit money is fake currency notes.

M

i have less than Rs 500 in cash . I don't think my family keeps much cash . so no issue for us .

$hadow said:
You can exchange the notes at any bank but the condition is that if they are more than 10 than you have to provide a indenting of yours. Elections are near I think it is a great move by RBI to get a hold on black money.

10k, right?

flyingcow said:
10k, right?

No, only 10 units of notes.

N

If RBI want to do anything, stop all the high currency notes 500 & 1000 . this will give people a problem for time being but fake currency will be stopped. It can force the business to accept card & this will reduce black money to certain extent.

this is a great move ...common people like us have max 10-20k at home to check ...netas and business man specially builders will have lots of them...donno about neta but business man will run to there bank to deposite the money and pay the taxes to make it white and get notes printed later then 2005...this way govt will get huge amount of taxes

noob said:
If RBI want to do anything, stop all the high currency notes 500 & 1000 . this will give people a problem for time being but fake currency will be stopped. It can force the business to accept card & this will reduce black money to certain extent.

Yup that's for sure:thumbup:

What should I do with these (pre 2005), I have kept them safely for last many years.

I know can exchange it with 4k easily but it feels good to have packets like this, specially of lower denomination.

PS: I have 1 full packet (100 notes) of Rs.1/- notes, which I am keeping surely.

*i.imgur.com/K35tEnB.jpg

DeSmOnD dAvId said:
Black Money is money gained from illegal activities. Counterfeit money is fake currency notes.

Not necessarily. It means undeclared money. It may be from illegal activities or from legal sources but undeclared to the government generally for saving taxes.

sling-shot said:
Not necessarily. It means undeclared money. It may be from illegal activities or from legal sources but undeclared to the government generally for saving taxes.

I was thinking about Breaking Bad and how they launder the money.

image said:
I know can exchange it with 4k easily but it feels good to have packets like this, specially of lower denomination.

PS: I have 1 full packet (100 notes) of Rs.1/- notes, which I am keeping surely.

Hi5

image said:
What should I do with these (pre 2005), I have kept them safely for last many years.
I know can exchange it with 4k easily but it feels good to have packets like this, specially of lower denomination.
PS: I have 1 full packet (100 notes) of Rs.1/- notes, which I am keeping surely.

You've got a different hobby.
Btw, it's 2005 and still looks new..

sling-shot said:
Not necessarily. It means undeclared money. It may be from illegal activities or from legal sources but undeclared to the government generally for saving taxes.

+1 to this. Black money has gained serious noteriety in our country because people think that only big corrupt netas/Ambanis/Greedy builders have black money stored. That's not true. Even the common shopkeeper or wage-earner, who already earns rather less(and has to give a cut from it to the government), always hesitates and has quite a bit stored in the parallel undeclared accounts(or in cash). People in the higher class like Jewellers have the same.

$hadow said:
No, only 10 units of notes.

Slight more clarification: The exchange of notes starts on April 1. Any transactions above Rs. 10 lakh(which is undoubtedly a biiig amount in cash)will be tagged with your identity(meaning 9,99,999 won't :wink:

). If more than 10 notes(of 500 or 1000) are exchanged from 1 July, identification is needed.

noob said:
If RBI want to do anything, stop all the high currency notes 500 & 1000 . this will give people a problem for time being but fake currency will be stopped. It can force the business to accept card & this will reduce black money to certain extent.

This is not unreasonable, but it is very impractical. Cash continues to be the predominant payment means of transactions in India. A compositional shift is underway in the form of a gradual replacement of lower denomination banknotes by higher denomination banknotes, particularly Rs.500.

Property today is more expensive than gold. 300 sq. ft. of commercial area in Connaught Place in Delhi costs Rs 1.2 crore :shock:

(just an example). All the big transactions are made more easier when paying in cash, in denominations of 500 and 1000.

Besides, it's not as if using electronic cards completely stops fake currency. I severely reduced ATM usage when I received 300/- worth of fake notes(3 fake 100s). These people always find a way. At least right now, you can be more cautious and check whenever you receive a 500 or 1000 note. You stop the circulation-and then you might have to check every note you receive.

The currency came to be for a reason. It is still the only universally accepted means of paying. At least at the local level. And it is does not depend on factors like electricity, network signal, remembering passwords to work. It is a good backup option at least if not primary. Although almost all high value transactions have gone electronic / banking except real estate, even the amount involved in day to day transactions is also quite significant. And I would rather have my wallet lifted anonymously rather than be kidnapped to reveal my ATM PIN and later hacked.

So people advocating the withdrawal of 500/1000 notes, please take a reality check from me (I know you would prefer that) ;-)

noob said:
If RBI want to do anything, stop all the high currency notes 500 & 1000 . this will give people a problem for time being but fake currency will be stopped. It can force the business to accept card & this will reduce black money to certain extent.

This is a great step too. Not all, but a significant amount will come to the government.

Update:
................
Notes printed before 2005 will remain legal, says RBI
i.India's central bank, the Reserve Bank of India (RBI) has clarified that the currency notes that were printed before 2005 will continue to be legal tender.
ii.The central bank said that the move to withdraw banknotes printed prior to 2005 is aimed at pulling off these bank notes from the market.
iii.The central bank pointed out that it is a common global practice to withdraw older series notes. The central bank said that the notes printed prior 2005 "have fewer security features compared to banknotes printed after 2005."
iv.The central bank clarified its statement dated January 22 following questions from the banks.
v.The RBI also said on its website that it is already systematically withdrawing these notes from the market in a routine manner through the banks in the country.
vi.It said that the members of the public can exchange the notes at bank branches as per their convenience.
vii.Further, even July 1, 2014 onwards, members of public can exchange any number of these old series notes from the bank branches where they have their accounts," it said in a press statement.

A

sksundram said:
Update:
................
Notes printed before 2005 will remain legal, says RBI
i.*India's central bank, the Reserve Bank of India (RBI) has clarified that the currency notes that were printed before 2005 will continue to be legal tender.
ii. The central bank said that the move to withdraw banknotes printed prior to 2005 is aimed at pulling off these bank notes from the market.
iii.*The central bank pointed out that it is a common global practice to withdraw older series notes. The central bank said that the notes printed prior 2005 "have fewer security features compared to banknotes printed after 2005."
iv.*The central bank clarified its statement dated January 22 following questions from the banks.*
v.*The*RBI also said on its website that it is already systematically withdrawing these notes from the market in a routine manner through the banks in the country.
vi.*It said that the members of the public can exchange the notes at bank branches as per their convenience.
vii.*Further, even July 1, 2014 onwards, members of public can exchange any number of these old series notes from the bank branches where they have their accounts," it said in a press statement.

So that means this is no big step to curb black money? If it is a regular practice..

This is supposedly a move to curb counterfeit notes as the later notes are supposed to have better security.

Black money reduction was an additional advantage. But then it was probably opposed by influential *people *

T

this was a good step as pre-2005 notes are hard to detect fake. newer notes have some impressive secure features that are hard to fake

DeSmOnD dAvId said:
Thank God, I never withdraw more than 200 Rs at a time from the ATM.

But seriously, how do they expect everyone to turn over their cash? Unless they are giving alternative notes in exchange for the old notes.

They are also contemplating limiting ATM transactions to 5 over which each transaction will be charged. This includes your own ATM. I think days of withdrawing just 200 or 500 will be over soon.

M

^ Fair enough if they put the money to good use and employ security personnel at each ATM. Else if you have to pay a fee to withdraw your own money what's the use of depositing it in a bank.

nice..

moniker said:
^ Fair enough if they put the money to good use and employ security personnel at each ATM. Else if you have to pay a fee to withdraw your own money what's the use of depositing it in a bank.

Why should the customers bear the cost of security of Bank's ATM? It's entirely bank's responsibility. Apparently looks more like a ploy to milk the customers, more in the line of charging for every services offered by banks (like SMS alerts).

W

blame it on govt or more specifically this:
Guard ATMs or shut down?
it seems that just like every other task govt wants to outsource law & order too because it would be naive to think that atm with a single unarmed guard will be able to deter criminals.

I just did a quick check of all the cash I have and I am glad to say that all of it is ok. I think most of the currency in general circulation now was introduced after 2005.

I have no faith in the ability of our esteemed central bank in arranging a hassle free exchange considering the difficulty I have to go through to exchange soiled / torn notes at present.

V

Unfortunately this won't help really as the black money system has established itself very strongly .... See Underground couriers rush to turn cash into gold - The Hindu

“We’ve done it before and we’ll do it again”, he added, “but it’s going to be tough.”