Demonetisation effects

[rajasumi3]

After PM narendra modi s demonetisation on the countrynmen, do u think the situation has upgraded or dehraded?
Would it bring any better days in the near future or would it be worse?

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[nizamcc]

The current situation is making me feel that everything is settling down, stabilizing and we are already in our good days where we are able to buy vegetables at their cheapest prices, I hope that as soon as the effects of demonetization ends, these sabziwalas don't show their real colors as that will be the worst scenario that our "aam aadmi" will face ultimately.

[nkc007]

After PM narendra modi s demonetisation on the countrynmen, do u think the situation has upgraded or dehraded?
Would it bring any better days in the near future or would it be worse?

We don't know anything about the future. But, Being a citizen of India, I believe Its the youth on which the upgradation or degradation of our country depends.So, I think we should keep trying and one day all the black money will be erased from the face of india.

[erikalui]

I don't see any positives that have affected the common man in India. I can see vegetables have gone down by about 25-30% while petrol prices have increased. Loan interest rates have gone down but I have yet not seen the normal bank interest rates increasing. Some companies like Disney and other small scale industries fired employees and this doesn't seem good enough in the employment section. When the budget comes out, we can actually see the result of demonetization but till then, we can just assume the positives.

[savioroshan]

In my opinion , what our prime minister did was for a good cause.His idea was good but planning was not proper. His idea was to eliminate all black money. But nothing happened. He should not have given this much time period. It was a bonus for all black money holders. That time was sufficient for all black money holders to convert it into white.  Modi ji should have planned about the availability of new currency earlier itself before banning all the existing currency. Now what happened , whose who had blackmoney they converted it into white and ordinary  common people are struggling to get money from the bank. Because of this lack of planning it affected the whole economy of the country. What to do?People are not getting money from bank. So not able to buy anything from shop. So thereis no income for shop owners or small scale industries. That means no income tax .If there is no income tax then it will affect the economy of the country. The main problem was lack of planning.

[bitcoinisbest]

The effect was that for those 50 days there were too much of line across banks and ATM. Since only few were working and mostly they had 2000 Rs not it was more difficult for people to get those 2000 Rs changes as nobody had those 500 Rs as many of the bankers got corrupted and directly send those notes to big players from the back window.

[@prashant]

We have already seen what demonetisation did .a sudden change of bitcoin price ,many black holder invested a lot in bitcoin to get in safer side.after 2014 ,in 2017 btc hits 75k ,lets see what more to come!

[Pattberry]

We have already seen what demonetisation did .a sudden change of bitcoin price ,many black holder invested a lot in bitcoin to get in safer side.after 2014 ,in 2017 btc hits 75k ,lets see what more to come!

The situation i did not understand is that how come black money holders will be able to invest in bitcoin without the help of a bank and if you are investing the illegal currency you hold it naturally becomes traceable and how come they can hide this from the government as they can very well verify the bank transactions as all the exchanges do ask for KYC and other personal information to verify and activate the account. It is true that people started investing in bitcoin that does not mean all the black money is converted into bitcoin,

[rajasumi2]

according to me demonetization have not done any good at all .the price of commodities are increasing a lot and the general people are suffering a lot .acc to me the government should devise other strategy to make it work and so that the common people does not suffer.

[lordquanta]

Effects of demonetization are fading away and life is getting back to normal for average people. From Feb there will no limit on cash withdrawal from Current account (good for business).
There are no more long queues outside ATM anymore.

[Marma Kalari]

Effects of demonetization are fading away and life is getting back to normal for average people. From Feb there will no limit on cash withdrawal from Current account (good for business).
There are no more long queues outside ATM anymore.

After a stupid move by the government i do not know whether they profit anything from it.Now i heard they are planning to implement tax for withdrawing big amount of money from bank.I do not know where things will be moving with these sort of stupid rules and regulations to milk the people.

[zahra4577]

In bitcoin context,a lot of bitcoin users and enthusiast believe that demonetization pushed up bitcoin price and it seems somewhat true as we saw a lot of bitcoin buying in those early demonetization days.
Government wanted to curb the menace of black money with this move but as per RBI,it didnt help in this direction.

[lordquanta]

Effects of demonetization are fading away and life is getting back to normal for average people. From Feb there will no limit on cash withdrawal from Current account (good for business).
There are no more long queues outside ATM anymore.

After a stupid move by the government i do not know whether they profit anything from it.Now i heard they are planning to implement tax for withdrawing big amount of money from bank.I do not know where things will be moving with these sort of stupid rules and regulations to milk the people.

This is not a stupid move, this is tyrannical move. First create cash crunch then force people to online/digital payment mode. On this digital transactions levy the charge.  Honest tax payers are openly abused by banking systems with help of Govt.

[lordquanta]

In bitcoin context,a lot of bitcoin users and enthusiast believe that demonetization pushed up bitcoin price and it seems somewhat true as we saw a lot of bitcoin buying in those early demonetization days.
Government wanted to curb the menace of black money with this move but as per RBI,it didnt help in this direction.

This traction towards bitcoin earned bad reputation only from indian paid news media. They are showing bitcoin is being used to launder black money.
During that time People started investing in bitcoin just because someone told you could hide your cash. Anyway people are investing in bitcoin, they are not using it.

[nizamcc]

We have already seen what demonetisation did .a sudden change of bitcoin price ,many black holder invested a lot in bitcoin to get in safer side.after 2014 ,in 2017 btc hits 75k ,lets see what more to come!

The situation i did not understand is that how come black money holders will be able to invest in bitcoin without the help of a bank and if you are investing the illegal currency you hold it naturally becomes traceable and how come they can hide this from the government as they can very well verify the bank transactions as all the exchanges do ask for KYC and other personal information to verify and activate the account. It is true that people started investing in bitcoin that does not mean all the black money is converted into bitcoin,

There were many people in India who were having lots of Bitcoins with them and they had sources as well as ways to be used to convert that black money into white, because of which they were selling at some extremely premium rates which even International markets didn't witness. There were cash deposit options available, using which many black money holders converted their cash into bitcoins through the use of their contacts.

[Forbiddenone]

We have already seen what demonetisation did .a sudden change of bitcoin price ,many black holder invested a lot in bitcoin to get in safer side.after 2014 ,in 2017 btc hits 75k ,lets see what more to come!

The situation i did not understand is that how come black money holders will be able to invest in bitcoin without the help of a bank and if you are investing the illegal currency you hold it naturally becomes traceable and how come they can hide this from the government as they can very well verify the bank transactions as all the exchanges do ask for KYC and other personal information to verify and activate the account. It is true that people started investing in bitcoin that does not mean all the black money is converted into bitcoin,

There were many people in India who were having lots of Bitcoins with them and they had sources as well as ways to be used to convert that black money into white, because of which they were selling at some extremely premium rates which even International markets didn't witness. There were cash deposit options available, using which many black money holders converted their cash into bitcoins through the use of their contacts.

Exactly do not think that black money holder do not know tricks to hide their money.you are well known about Swiss account holders in india,majority have them are political parties.

[bitcoinisbest]

RBI is removing the limit from Savings Bank account from 13t March . They issued statement yesterday where limit will be enhanced to Rs 50,000 per week starting 20 February and the restrictions will be abolished from 13 March.

[Marma Kalari]

Effects of demonetization are fading away and life is getting back to normal for average people. From Feb there will no limit on cash withdrawal from Current account (good for business).
There are no more long queues outside ATM anymore.

After a stupid move by the government i do not know whether they profit anything from it.Now i heard they are planning to implement tax for withdrawing big amount of money from bank.I do not know where things will be moving with these sort of stupid rules and regulations to milk the people.

This is not a stupid move, this is tyrannical move. First create cash crunch then force people to online/digital payment mode. On this digital transactions levy the charge.  Honest tax payers are openly abused by banking systems with help of Govt.

The problem with these sort of tyrannical move is that people find a better way to invest their money rather than putting them in the bank and if you look at the interest for bitcoin in India has increased after the demonetization,the government plans on forcing people to use digital payment but it has to come gradually and never push people to do something,it might back fire because what if people stop depositing in bank and find alternative sources.

[bitcoinisbest]

Effects of demonetization are fading away and life is getting back to normal for average people. From Feb there will no limit on cash withdrawal from Current account (good for business).
There are no more long queues outside ATM anymore.

After a stupid move by the government i do not know whether they profit anything from it.Now i heard they are planning to implement tax for withdrawing big amount of money from bank.I do not know where things will be moving with these sort of stupid rules and regulations to milk the people.

This is not a stupid move, this is tyrannical move. First create cash crunch then force people to online/digital payment mode. On this digital transactions levy the charge.  Honest tax payers are openly abused by banking systems with help of Govt.

The problem with these sort of tyrannical move is that people find a better way to invest their money rather than putting them in the bank and if you look at the interest for bitcoin in India has increased after the demonetization,the government plans on forcing people to use digital payment but it has to come gradually and never push people to do something,it might back fire because what if people stop depositing in bank and find alternative sources.

Well yes there will be different alternates that may come in the process and which may be good per say as well for all the country wide people. Well some may not be in the sync with the governament policies and then their will be formal rules and regulations in place for those.

[lordquanta]

Effects of demonetization are fading away and life is getting back to normal for average people. From Feb there will no limit on cash withdrawal from Current account (good for business).
There are no more long queues outside ATM anymore.

After a stupid move by the government i do not know whether they profit anything from it.Now i heard they are planning to implement tax for withdrawing big amount of money from bank.I do not know where things will be moving with these sort of stupid rules and regulations to milk the people.

This is not a stupid move, this is tyrannical move. First create cash crunch then force people to online/digital payment mode. On this digital transactions levy the charge.  Honest tax payers are openly abused by banking systems with help of Govt.

The problem with these sort of tyrannical move is that people find a better way to invest their money rather than putting them in the bank and if you look at the interest for bitcoin in India has increased after the demonetization,the government plans on forcing people to use digital payment but it has to come gradually and never push people to do something,it might back fire because what if people stop depositing in bank and find alternative sources.

There is a long way to go for bitcoin adoption in India. A fraction of fraction from India are investing in bitcoin. Again bitcoin is still considered as investment. That buy n keep it. Banks have larger role in day to day life of people n business.  As far as digital payments are concerned they will fall back and people will return to the cash oriented business. From 14 march 2017 onwards there will be no limitations on withdrawals.

[Pattberry]

There is a long way to go for bitcoin adoption in India. A fraction of fraction from India are investing in bitcoin. Again bitcoin is still considered as investment. That buy n keep it. Banks have larger role in day to day life of people n business.  As far as digital payments are concerned they will fall back and people will return to the cash oriented business. From 14 march 2017 onwards there will be no limitations on withdrawals.

The government will come up with a new strategy to crunch the cash flow and restrict people from using paper currency,basically for the digital payments to be implemented they have to upgrade the basic facilities as you wont get a proper speed for the internet connection compared to the rest of the world or a good mobile phone reception in most parts of the country and how they expect people to shift entirely to digital payment.

[bitcoinisbest]

There is a long way to go for bitcoin adoption in India. A fraction of fraction from India are investing in bitcoin. Again bitcoin is still considered as investment. That buy n keep it. Banks have larger role in day to day life of people n business.  As far as digital payments are concerned they will fall back and people will return to the cash oriented business. From 14 march 2017 onwards there will be no limitations on withdrawals.

The government will come up with a new strategy to crunch the cash flow and restrict people from using paper currency,basically for the digital payments to be implemented they have to upgrade the basic facilities as you wont get a proper speed for the internet connection compared to the rest of the world or a good mobile phone reception in most parts of the country and how they expect people to shift entirely to digital payment.

This is right only by pushing will not happen to digital payment. Because the basic facility like roads, network, toilets, public transport in majority of villages doe snot have it. So this will be a big task for any government.

[lordquanta]

There is a long way to go for bitcoin adoption in India. A fraction of fraction from India are investing in bitcoin. Again bitcoin is still considered as investment. That buy n keep it. Banks have larger role in day to day life of people n business.  As far as digital payments are concerned they will fall back and people will return to the cash oriented business. From 14 march 2017 onwards there will be no limitations on withdrawals.

The government will come up with a new strategy to crunch the cash flow and restrict people from using paper currency,basically for the digital payments to be implemented they have to upgrade the basic facilities as you wont get a proper speed for the internet connection compared to the rest of the world or a good mobile phone reception in most parts of the country and how they expect people to shift entirely to digital payment.

Every attempt by Govt will fail unless they drop transaction charges levied on online payments like debit/credit card transactions. Consider this current hypothetical situation, if person has 1Lac cash with him then he could purchase goods worth 1Lac in reality. However if he purchase goods using debit card then he pays 2% charge, thus he is loosing effectively 2 thousand rupees. Nobody from India willingly pay 2% just for ease of transaction.
If Govt pushes harder then in next election people will simply decimate ruling party.

[jawed]

The economy of the country is in dire staits due to direct impact of demonetisation of currency.
Most of the small scale industries are either shutdown or on the verge of shutting down. Unemployment has
increased tremendously. Long term effects can only be scary, at the most.

[Forbiddenone]

The economy of the country is in dire staits due to direct impact of demonetisation of currency.
Most of the small scale industries are either shutdown or on the verge of shutting down. Unemployment has
increased tremendously. Long term effects can only be scary, at the most.

Demonatisation effect has long gone.where are you living?
Now everyone has new currency and their well using it.only black holder are doing unnecessary stunt and spreading invalid rumors.

[lordquanta]

The economy of the country is in dire staits due to direct impact of demonetisation of currency.
Most of the small scale industries are either shutdown or on the verge of shutting down. Unemployment has
increased tremendously. Long term effects can only be scary, at the most.

Could you please share the statistics backing up your claim or any survey results? This would be helpful in understanding the magnitude of the impact. Knowing how much destruction has happened would be instrumental in assessing current situation.

[jawed]

The economy of the country is in dire staits due to direct impact of demonetisation of currency.
Most of the small scale industries are either shutdown or on the verge of shutting down. Unemployment has
increased tremendously. Long term effects can only be scary, at the most.

Demonatisation effect has long gone.where are you living?
Now everyone has new currency and their well using it.only black holder are doing unnecessary stunt and spreading invalid rumors.

Where are you living? On the moon? Get out of the comfort of ur house and check the reality outside, dear sir.
Most of the powerlooms in bhiwandi are closed for last two months. Lack of cash to pay daily wagers.
Maharashtra revenue department registered a loss of stamp fees estimated at 1800cr
Many mnc's and major production houses reported severe drop in sales eg Nestle India 1000cr
Most of the rural areas don't get regular peer supply. There are no cellular towers in most rural areas. Despite the massive financial breakdown
of most western (developed) countries from 2008 to 2011, India managed to survive only because of parallel cash economy. Now you have successfully killed it. Yet BRUTUS IS AN HONOURABLE MAN.

[lordquanta]

The economy of the country is in dire staits due to direct impact of demonetisation of currency.
Most of the small scale industries are either shutdown or on the verge of shutting down. Unemployment has
increased tremendously. Long term effects can only be scary, at the most.

Demonatisation effect has long gone.where are you living?
Now everyone has new currency and their well using it.only black holder are doing unnecessary stunt and spreading invalid rumors.

Where are you living? On the moon? Get out of the comfort of ur house and check the reality outside, dear sir.
Most of the powerlooms in bhiwandi are closed for last two months. Lack of cash to pay daily wagers.
Maharashtra revenue department registered a loss of stamp fees estimated at 1800cr
Many mnc's and major production houses reported severe drop in sales eg Nestle India 1000cr
Most of the rural areas don't get regular peer supply. There are no cellular towers in most rural areas. Despite the massive financial breakdown
of most western (developed) countries from 2008 to 2011, India managed to survive only because of parallel cash economy. Now you have successfully killed it. Yet BRUTUS IS AN HONOURABLE MAN.

Your reply somehow justifies the black-money economy. It is true that during global economic slow down, India didn't get affected much because of cash-economy (black money).  Initial objective of demonetization was good however it is the implementation that failed miserably.  The mismanagement wrecked havoc in life of all parts of Indian society. Lower economical strata and Rural strata of society felt the impact hard.  Situation has improved a lot. Now there is less cash crunch to cover daily expenses of people. At the same time it is NOT enough to cover the daily expenses of business which hand out daily wages to the people.
On top of that banks are playing dirty tricks by levying charges on debit/credit cards. Now who the hell will move to card payments if you are paying tax for using your own money. This is daylight robbery. 
Other excuses for demonetization like counterfeit currency has been debunked recently with neighboring countries have successfully created and circulated those notes.

[zahra4577]

As far as bitcoin is concerned, I have a feeling that demonetization has fuelled the bitcoin price in India.
Has it become safe heaven for hoarding black money?

[lordquanta]

As far as bitcoin is concerned, I have a feeling that demonetization has fuelled the bitcoin price in India.

No, definitely not. In fact current bitcoin price is growing because all over the world it is increasing. Currently world wide bitcoin price $1,167 to $1200. 

Has it become safe heaven for hoarding black money?

AFA India concerned most bitcoin wallet or exchange has KYC procedure and they have disclaimer about they will share that information with Govt of India.  That does not mean one can not store black money in bitcoin.

[bitcoinisbest]

As far as bitcoin is concerned, I have a feeling that demonetization has fuelled the bitcoin price in India.
Has it become safe heaven for hoarding black money?

Well it could be but only thing is that they will have to purchase btc in cash and sell it in cash. Again if they have large qty then selling may be difficult as there should be buyer who has to agree to the rate and qty as well.

[vaibhavsingh]

Unless Modi government stays here for 5-10 years no much use of demonetisation.