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India bans 16.5 billion 500 rupee notes and 6.7 billion 1000 rupee notes

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Nov 11, 2016 in Taxes by Dan (4,755 points)
Indian government bans all its 500 rupee notes and 1000 rupee notes which are currently in circulation. There are over 16.5 billion 500 rupee notes and 6.7 billion 1000 rupee notes - which together accounts for over 80 percent of the value of cash that was in circulation in India . In which 0.005 percentage of the notes are fake. Now the government will release new 500, 1000 and new 2000 denomination currencies. This is not just of eliminating the fake currencies, it is mainly to overcome the black money.

Many people don't pay the taxes and has a large amount of money hidden. They can't use those money anymore. The only thing they can do is to deposit them in the bank and to get new currencies but they will be caught.

3 Answers

Marianne Nov 11, 2016

Yes, although this does not seem to be directly related to the American elections, but more a drastic measure to deal with changes and internal problems:

http://www.economist.com/news/finance-and-economics/21709988-government-transforms-base-money-nothingness-and-gold-taking-notes

http://www.huffingtonpost.com/elena-ulansky/us-elections-impact-on-in_b_9276226.html


TheOtherTink Nov 11, 2016

I'm sure the well-connected people had long since converted their rupee notes to gold or a foreign currency not likely to be called in.

There must be a huge underground economy that uses gold as its exchange medium, and this move by the Indian government will encourage more of it.

And of course it wouldn't surprise me if lots of politicians are hiding major assets overseas, like former British PM Cameron, as shown by WilkiLeaks.  Corruption abounds.  :angry:

Marianne TheOtherTink Nov 12, 2016

That is indeed the sad reality - like in the past - and in India, the highest castes are in control of power and wealth. India wants indeed to prevent tax evasion, corruption and forgery. But the richest and biggest cheaters will get away again, as much as crime organisations, while the commoners "have to pay the bill", while ancestral superstitions, taboos and attitudes are persisting:

http://www.firstpost.com/india/rs-500-rs-1000-ban-it-is-the-common-man-who-is-affected-and-his-anger-is-showing-3101862.html :angry:

:)


TheOtherTink TheOtherTink Nov 12, 2016

Right you are.  The rich oligarchs of the Establishment (no matter what their politics are, left or right) have no intention of losing their wealth or power.

Marianne TheOtherTink Nov 17, 2016

Lol - may I return the compliment? It is a question of verifying, as much as possible, the different sources and trying to find out what's fact and what's illusion - and with a lot of contradictory elements at hand, one feels, sometimes, confused and starts questioning things all over again ...

As one can see, history repeats itself, and wherever you go, most oligarchs, leaders (or their sponsors) and "assistants" or "supporters" invest, divide and control - all the more if they are behind the scenes.


:)<3

xix Dec 1, 2016

Wow. $37 USD out of circulation in their country.

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