Finance and Economics > Economic News, the Global Economy and all Things Monetary

Chaos as India eliminates two largest banknotes without warning

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Morning Sunshine:
weird to think that no one - NO ONE - knew this was coming.  Where are the people who make the new money?  The banks got new bills in and didn't notice?
And what about the bills you have lost in old jackets that you won't find until the first big snow?  Or in that suit jacket you wore to your great-aunt's funeral 3 years ago?  I bet there is a LOT of misplaced cash that will be permanently lost (stolen?) with this.

mountainmoma:

--- Quote from: Morning Sunshine on November 08, 2016, 06:37:11 PM ---weird to think that no one - NO ONE - knew this was coming.  Where are the people who make the new money?  The banks got new bills in and didn't notice?
And what about the bills you have lost in old jackets that you won't find until the first big snow?  Or in that suit jacket you wore to your great-aunt's funeral 3 years ago?  I bet there is a LOT of misplaced cash that will be permanently lost (stolen?) with this.

--- End quote ---

I bet alot will be effectively stolen as it will be above the allowed no-questions-asked turn in amount, given that most low income people there likely dont keep records to prove it was legally gotten

Mr. Bill:
Here's what appears to be a collection of official propaganda (i.e. incompletely informative posters prominently featuring a photo of Prime Minister Modi):

Black money: Modi govt's move to bring in new notes explained in 8 graphics

mountainmoma:
ok, so maybe it isn't black market, but counterfeit money ? Makes sense to exchange for currancy that cant be easiy counterfieted

endurance:
This isn't about counterfeit, it's about getting their hands in the pockets of the middle class and rich. This is a nation that doesn't trust its backs and most transactions are face to face for cash. People store their entire life savings in cash. If you have a few thousand roupees, no problem. You'll be able to exchange them for the new money in a few days. If you have a few million, the government is going to come knocking and will likely seize their 60% or take it all since the tax amnesty period is over.

I suspect this will lead to the storing of foreign currencies in the future. You're safer exchanging for dollars and storing them than waiting for this to happen again.

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