India Bans Its Largest Fiat Currency Notes

[~Bitcoin~]

Found that they were planning this for last six month and only few people know about this will be coming however this have made many people mad about their government as they haven't given enough time to exchange all 500 and 1000 Rs notes they have in their hands. Standing in long queue to just deposit their hard earned money can't be good solution for lower class people, all the black money are out of India and are stored in big foreign country banks.

[CoinPro69]

It's all a preparation for a cashless world! transactions - to track everyone and everything!

[Soros Shorts]

9:38 pm: There is no restriction of depositing your legal Rs. 500, Rs. 1000 notes for exchange. Any amount, as long as it is legal, can be exchanged.

What exactly is the definition of a legal note? I'd like to know how they'd enforce this.

[kiklo]

9:38 pm: There is no restriction of depositing your legal Rs. 500, Rs. 1000 notes for exchange. Any amount, as long as it is legal, can be exchanged.

What exactly is the definition of a legal note? I'd like to know how they'd enforce this.

Legal Note or Legal Tender
coins or banknotes that must be accepted if offered in payment of a debt.

After Dec 30th, the Banks & Government organizations will no longer accept those bills for any payment.
As an individual if you still have those bills on Jan 1st, 2017 , they become worthless because no one will take them if they know they can not be used anywhere else.
All money is only worth what you can exchange it for, these bills will no longer be exchangeable so they will be worthless.

Worst part, there will probably be many people that don't know the bills are worthless and accept them for payment after the deadline.
So anyone in India should inform their friends and family so as few people as possible are ripped off by anyone trying to pay with those bills. 

 

[klf]

It's all a preparation for a cashless world! transactions - to track everyone and everything!

In India, mostly 90% or more transactions are done through cash and lot of black money, and duplicate notes are around. So government want to cut down all these things, so they have no other choice. This is the best way to stop using all those activities. It is actually good move but managed it even in a better way. It has caused lot of issues to common man in their daily life activities.

[btcdevil]

9:38 pm: There is no restriction of depositing your legal Rs. 500, Rs. 1000 notes for exchange. Any amount, as long as it is legal, can be exchanged.

What exactly is the definition of a legal note? I'd like to know how they'd enforce this.

Legal Note or Legal Tender
coins or banknotes that must be accepted if offered in payment of a debt.

After Dec 30th, the Banks & Government organizations will no longer accept those bills for any payment.
As an individual if you still have those bills on Jan 1st, 2017 , they become worthless because no one will take them if they know they can not be used anywhere else.
All money is only worth what you can exchange it for, these bills will no longer be exchangeable so they will be worthless.

Worst part, there will probably be many people that don't know the bills are worthless and accept them for payment after the deadline.
So anyone in India should inform their friends and family so as few people as possible are ripped off by anyone trying to pay with those bills. 

 

It is true that still in remote and village area they dont have any knowledge about this law and still using 500 and 1000 currency,

It is true that if you are owing the legal money in the sense if you have account of what currency amount you are holding then their is no problem, but if you dont have any account about what you are holding then you will have to pay 30% tax and get your money get legalized by depositing in bank. But that too till 30th december 2016, from 31st december 2016 they will be worthless

[tabas]

It's all a preparation for a cashless world! transactions - to track everyone and everything!

In India, mostly 90% or more transactions are done through cash and lot of black money, and duplicate notes are around. So government want to cut down all these things, so they have no other choice. This is the best way to stop using all those activities. It is actually good move but managed it even in a better way. It has caused lot of issues to common man in their daily life activities.

This is kinda a bit serious that India already forgotten their largest fiat currency. For sure that is needed for some serious matters. Because if a note will be totally ban by a government and its currency is totally worthless. And for sure, there are countries that will do the same move as India does, this is the start of the conspiracy of cashless society, 666 is already in the world.

[Dudeperfect]

Guys, I have been following responses on this thread.

Let me clear one thing that I am also from India and situation is under control. This step was taken to deal with fake currency notes as well as undeclared cash causing a major loss to the Indian economy.

Citizens of India can now exchange their currency notes of Rs.500 and Rs.1000 with new notes of Rs.2000 and lower (Rs.10, Rs.20, Rs.50 & Rs.100 etc).

Some members raised a question that how this topic is related to bitcoin. Well, let me explain that the popularity of bitcoin is based on cons of fiat currency and how such situation can affect other commodities or our own bitcoin.

If you are from India and you have cash not more than Rs.2,50,000/- then you can exchange it with the nearest bank or post office. If you have cash more than this limit and if you can't declare its source then you will have to pay 200% fine for the evaded tax.

[Sithara007]

India is not banning the highest denomination (₹500 and ₹1,000) notes. They are simply replacing the old banknotes with the new ones. And they have introduced the ₹2,000 banknote, which didn't existed earlier.

[ariesjia]

India is not banning the highest denomination (₹500 and ₹1,000) notes. They are simply replacing the old banknotes with the new ones. And they have introduced the ₹2,000 banknote, which didn't existed earlier.

Yeah and I think that was the smart move taken by the Government of India to replace the currency notes as it will bring out lots of black money and it will helped the economy in the best ways as we know that in India the corruption is at its peak and this move will surely end up corrupted activities.

[Dudeperfect]

Yes, the government has introduced new currency notes but banned all current notes in circulation and that means the value of current Rs.500 & Rs.1000 notes is collapsed but still the government is going to pay for it because it was a decision of the government to abolish these notes. All current Rs.500 & Rs.1000 notes are no longer traded in India (except places specified by the government). Now if you have some notes then you must declare it to the government or lose all of your holdings.

[croutonhexagon]

It's one of the best step to eradicate black money from within the nation. Because this time all money will go out from lockers of money holders home. Because its been announced that 500 and 1000rs note after 31st December will be just a paper and nothing more than that so all money will come out of home for exchange and then they will get captured.

[requester]

There gonna be lot of controversy about it. Already the news had hit like tsunami and all black money holder are moving here and there to buy gold because if they exchange their old money with new currency then they will get caught and will have to pay taxes for their money so demand of gold had risen up and almost 80% rise in good price had taken place

[Yakamoto]

It's one of the best step to eradicate black money from within the nation. Because this time all money will go out from lockers of money holders home. Because its been announced that 500 and 1000rs note after 31st December will be just a paper and nothing more than that so all money will come out of home for exchange and then they will get captured.

It stops in December? Then the black money homes are out buying things and getting real money back right now. There's no way they're going to hold onto them for longer than they would, and something like this is something that they would pay attention to. There's more intelligence than you'd expect for criminals of this sort.

[bitcoinsforall]

The ban is mostly aimed to tap corruption/black money..but the thing is already the politicians are aware of this fact since much of the planning was done 10 months back.

So the politicians have made away with their black money in all means as soon as they could

[SONG GEET]

The ban is mostly aimed to tap corruption/black money..but the thing is already the politicians are aware of this fact since much of the planning was done 10 months back.

So the politicians have made away with their black money in all means as soon as they could

Yes actually this new regulation have only made hard for normal level businessman and farmers to exchange their stored cash into new cash. This will surely not limit all the black money that were stored in swiss banks.

[marleybobthedog]

It's another step towards eradicating black money from within the country. MODI had taken this step in very clever manner just in a day he changed the view of country. It's an awesome step and i had heard that new 2000 Rupees note will come with computer chip which will send date to satellite with serial number and coordinate of geographical location. So now tax department could easily manage the situation when one have billions of money stored in one's house

[Mastsetad]

Though it can make the work of people involved in illegal activities harder but i don't see any impact for bitcoin in this, because bitcoin is far not related to paper money yet and also they have not banned the complete paper money system but just a few notes are banned which won't affect bitcoin in either positive or negative way.

[leopard2]

It's all a preparation for a cashless world! transactions - to track everyone and everything!

In India, mostly 90% or more transactions are done through cash and lot of black money, and duplicate notes are around. So government want to cut down all these things, so they have no other choice. This is the best way to stop using all those activities. It is actually good move but managed it even in a better way. It has caused lot of issues to common man in their daily life activities.

You cannot be serious. 

If it was about getting counterfeits out of the way, a simple and anonymous exchange of old vs new (with the help of  a cash checker) would suffice. This is all about registration, taxation and people control.

Here in Europe, old banknotes have been replaced by new ones several times. Never ever was it necessary to register and/or deposit in a bank account. Banks would simply keep the old paper and hand out new paper.

[Ayers]

do you guy think this can lead to an increase of adoption for bitcoin, since to do black market now they need somethign else, because with cash it will be more difficult for them to do it, there might be a chance for them to use bitcoin more, thus the price will increase because of more buyers from india