Topic: India Bans Its Largest Fiat Currency Notes - page 9. (Read 7336 times)

Oh I see now. So the government officials are trying to bait all of the tax evasion offenders to come out of the shadows and deposit their soon to be paper money bills and catch them red-handed. It's a very effective plan of action to be honest and this idea hasn't even crossed my mind lol. Get rid of the big bills and force people to show up at the banks, get them checked out and then release new, bigger bills. Smooth play, India  

this action has really ut a little brakes on the black marketters or i should say only to the fake money makers because black marketers do not care about physical koney they are & even we are more developed then any country we keep our money vertually

There's a very wrong perception circulating around because of improper communication among people. India hasn't banned the Rs. 500 and Rs. 1000 notes. It's infact just made the old Rs.500 note an illegal tender and the Rs 1000 note is replaced now by a Rs. 2000 note (twice the value) all of this done for the purpose of handling corruption and black money holders and to force them to deposit their old notes in their bank accounts by providing their Tax identification card and/or other forms of identification.

The banks are making users fill a form indicating the deposit of their old currency note money to their bank accounts. This is done to force those people who've not paid income taxes for their income earned in India while receiving them in cash and storing them in their homes. A large percentage of these aren't accounted by the Income Tax department and is illegal as per law. Today and tomorrow the new Rs 500 and Rs 2000 notes are in circulation in smaller amounts in few ATM's and few open banks. By next month a larger percentage of those notes can be withdrawn from ATM's and banks. In a way it's restricting the poorer and those without plastic cards from spending more cause less funds would be available from ATM's or banks for them. Those who have debit cards or credit cards can easily spend. So it's the poor who would truly require Bitcoins, but ofcourse majority aren't literate and fortunate enough to be technologically competent to be involved in Bitcoin and to understand the risk of investing in it.

The way I am explaining this decision to myself is that the government think that banning the top priced banknotes will reduce the likelihood of bribes and corruption going around in the country because it would be more difficult to carry around suitcases full of cash. Now that these banknotes are out of circulation it would take people a lot of effort to pay the same amount of money with a lot of smaller bills thus making their actions very conspicuous and the offenders will be much more easily identified and apprehended.

Well, i heard about stop printing little notes such as 2 or 5, in our country you already will not find this notes anymore. But now banks print higher price notes as 2000 and 5000. It's all happening cause money get cheaper. But that was the first time I heard about oposite process. I even don't know what to say on this point.

Sacrifice privacy for the sake of preventing money laundering? You might just open up a lot of people to harassment from tax authorities.
Too much power in the hands of the government can lead to misuse.

You missed the Rs.100 note , the most important note currently for these few days. I am an Indian myself, and overall i like the step taken by PM, some people are angry because it would cause a major inconvenience for few weeks but this is huge step in reduing black and I believe that this would actually make some difference.

You have wrong information my friend, the new Rs. 500 and Rs. 2000 notes will be available in ATMs and Banks from 10th November itself.

This is WRONG. New INR 500 & INR 2000 notes will hit ATM in November only. I have information that they have already been sent to bank chests. Government of India is trying its best to heal the pain of common people.

This was going to happen, the Indian PM was bound to do it. This will create a bit instability for a while, though it's good that he's doing it, this won't be the last, soon digital locker systems will come and Indian can open the it under supervision. Now coming to Bitcoin, this is perfect opportunity for it. The people should buy as much as they can and keep it away. This is not regulated and can't be banned. Go. For Bitcoins and be happy.

Now all of these are small notes.so if you are going to buy 5,000 worth of goods,you will need to carry loads of 50's in your wallet and if you are going to buy something worth 50,000 now you need to carry a basket or a check to do that I hope it will not happen here in our place.

So are these notes impossible to deposit into banks now? I feel sorry for the Indians hoarding cash.

Glad to hear from a local perspective. ^smile^ How would this influence your decision to buy more or less bitcoins now? I cannot see how this will have any influence on people's decision to buy other currencies. Yes, they might have to settle for smaller denominations, but this will suit the poor people better, because they seldom use the larger notes.

Would like to hear your take on this. ^smile^

I live in India, there are 4 notes in circulation now, Rs. 10, Rs. 20, Rs.50, and the Rs. 100.

The new notes will come in circulation from the Jan of 2017.
We just have to wait till then.

This might help India to grow in economy when most of the black money gets revealed as well government gets benefited from taxation. Unexpected implementation has made people get panic of what to do further to safe guard their black money.

That's a unique method of trying to curb counterfeiting, and I wonder if they're actually going to be able to do that and have it work in the way they intend for it to work. I don't know much about India and their economy, but it seems like something like that is a huge blow to at least a decent portion of the citizens of India.

Well, I guess there's nothing to worry because there's always the crypto world to help on that matter. Wanting to transact in black market? I think monero can take care of that.

For me, it's not surprising as a government can do whatever they feel would be a threat, they want transparency to prevent or see illegal activities.

This isn't a war against cash, it's a war against the people. The Indian government will introduce a new larger Rs 2,000 banknote. What that fascist government wants is to know who has cash, lots of it. But it's not a choice for millions Indians who do not have a bank account, nor an official address to open one. This is what governments do: they make life miserable for millions.

BTC is a great tool to fight governments, I hope many Indians will have the opportunity to exchange some of their old notes with BTC.

Technically it is impossible to make new Bitcoin and actually input it into the blockchain; the only way that you'd be able to do something like that would be to fork the network or something similar. There is no way to just try and force some additional Bitcoin into the blockchain.

Maybe if you had 51% of the network something like that could work, but I'd doubt it.

I have thoughts very similar to yours and i created my topic here: https://bitcointalksearch.org/topic/m.16803952

I can't help but think, what if we are signing our own death sertificate by trusting bitcoin so much.

See this? https://www.youtube.com/watch?v=FJNRVptyb9Y&index=7&list=PLZlI71Yh54Tv7xONyTvcstNsP09OUkww8

Bitcoin uses this to promote itself, but i see something different. Your money can go "puff!" with bitcoin too. And its way more easier!

The problem I see with that ban is low purchasing power of rupee. 1 rupee is currently worth $0.02 cents so 1000 rupees is roughly 15 USD.
I can't figure it out if government in India is being serious - how banning equivalent of banknotes in denominations of $7 and $15 will help them?

BTW - It is more Economy discussion than Bitcoin discussion, this thread should me moved to Economics section.