In an extraordinary step to tackle the scourge of black money in the India, Prime Minister Narendra Modi on Tuesday said Rs 500 and Rs 1000 notes will no longer be legal from 9th Nov midnight.
The Internet is going crazy, here are some Reactions
All you can do is burn your Black Money
“America counting votes…
India counting notes…????
We got MODIfied but USA may get TRUMPed…and that would be really HILLARYous! ????????
Surgical strike on all Ladies now they have to declare all savings to there husband tomorrow morning ????
Samsung isn’t the only one recalling Notes this year.????
Breaking news- Amma gets up from Apollo hearing this news ????
Cardiology departments in all hospitals to work 24×7 with triple staff strength for next 2 weeks????????????????
Donald Trump and Hillary Clinton,
We don’t care about you anymore.
Our Prime Minister dropped a NUCLEAR BOMB tonight. ???? “
or Use it as…
Some of the benefits of this move are: (Pros)
- It will help the government to fight Black money, corruption, terrorism and counterfeit currency with one single decision.
- Arms smuggling, espionage and terrorist related activities will be choked due to lack of funding.
- Counterfeit currencies are being used for financing terrorism which is being run by the enemy in India. Now Govt has taken a bold move which enables them to fight counterfeit currency/terrorist funding activities.
- With the new limits on ATM withdrawals being restricted to Rs 2,000 per day, withdrawals from bank accounts limited to Rs 10,000 a day and Rs 20,000 a week, it will drive the card payments across the country (All card transactions will slowly replace the cash transactions in daily activities).
- It will be easy for the Government to track the money being exchanged as exchange can only be done by producing a valid government identity cards like PAN, Aadhaar and Election Card from 10 to 24 November with a daily limit of Rs 4000. There is no limit on the amount as long as it is legal.
- FIU of India get info about transactions from banks. During this period, banks will take extra precaution. Banks will share info with Income Tax dept. as deemed fit. (So now it is difficult to get rid of the black money which is mostly in 500 and 1000 notes)
- The traditional benami transactions have already received a big blow as the new legislation has a provision for seven-year imprisonment and fine, replacing the three-year jail term, or fine, or both.
- This decision will help institutionalize the real estate sector bringing more transparency in the Indian real estate industry. This step would give the Indian real estate sector more credibility making it more attractive to the foreign as well as domestic investors.
- Housing prices could witness downward pressure, helping revive demand in the sluggish housing segment (this will give much needed bloodline to the sector)
- It will help the common man by putting an end to the artificial increase in Real Estate, Higher Education and Healthcare transactions bringing them within the reach of the common man.
New 500 And 2,000 Rupee Notes That Will Be Issued
- Inconvenience to common people who will start running to the nearby bank to exchange the 500 and 1000 currency notes.
- Cost of replacing the 500 and 1000 Rs notes.If all this additional money (a spectacular Rs.6.666 trillion) had to be printed using Rs.100 notes, it would cost RBI about Rs.11,900 crore, which is more than a four-fold increase. This is without taking into consideration the increased costs of operating ATMs (since they would need to be refilled more often), and of handling money in general. Scrapping Rs500, Rs1000 notes a costly idea
- Very difficult for more than half the population who are not well versed with the card transactions.
- This move deeply impacts the working sections of society: drivers, maids, cooks, electricians, plumbers. Anybody who provides services in the informal sector and depends on monthly or bi-monthly cash payments.
- How do you expect a chai wallah to leave his business and stand in a queue to deposit these notes in bank?
- What will happen to the common man who finds out that the note he is having is a fake one? How is the Govt going to handle such situations?
- The small businesses will be affected at least in the shorter run.
- Jan Dhan scheme, UPI/digital payment stack and payment banks are still in the nascent stage. It will be a long time before rural India moves to completely cashless transactions. In the short-term, people in rural India who have a significant amount of Rs 500 and Rs 1000 notes, but no official form of identification will have a tough time in exchanging their notes.
- The big fish will be left out whose black money is in the form of foreign currency, gold and stashed away in tax havens.
But the Pros which are in the long-term interest of the country comfortably outweigh the cons.