Suraj wrote:JayS wrote:But if banks track each and every old note deposited/exchanged then one cannot claim he deposited new money second time, because the money that he actually deposited was old currency and is marked already under his name. Yes, if the banks are not marking the old notes deposited in own bank accounts than one can make claims that he deposited new currency and get away. Since I am yet to go to bank and deposit the 2k worth old notes we have I don't know what banks are doing exactly.
More data for them to note down . Throughout is important. There's absurd amounts of cash suddenly flowing into the banking system. It looks like the early estimates for deposits will be exceeded by quite some margin . This system is not sophisticated enough to manage this throughout so efficiently . Therefore the smarty thing to do is to simply not generate the same denomination at all , so that roundtripping literally isn't possible and all the information that's needed quickly is number of notes and face value .
Agree 400%. Rs. 2000 note was a master stroke on many levels. I just wanted to get the doubt cleared at theoretical level.
My wishlist from GOI after this:
- No re-introduction of Rs. 1000 notes
- take out these new 2000/500 notes as well gradually
- increase supply of 100/50 notes - basically throttle the hard cash and force people to go for cashless payments
- Put max limit of cash-based transactions
- Put max limit on amount of cash that can be held legally for whatever reasons - may not be absolute limit but could be in proportion to the declared turn-over by the entity/person
- Better facilities for cash-less system - mandatory flat-rate on transaction irrespective of cash - should be same as NEFT at the max, but ideally very small amount like 50paise/transaction. Subsidized POS machines - just like GOI ran a program for LED, they can run it for cashless payment systems. Let pvt companies pitch in and do their bit.
- boost to liquidity in medium to long term through ways such as rate cuts, easier loan terms especially for MSMEs, tax-breaks for sectors which will take hit in short to medium term due to less spending by BM holders
- digitizing gold and RE sectors.
- Most importantly crack-down on corruption in government machinary - the babus need to feel the heat.
Would just like to make a shoot and scoot comment looking at the discussion here - Looks like we are getting into the debate of Good BM and bad BM a la good terrorism and bad terrorism. BM in any form is bad and should be taken down no matter what is the price. For terrorism we pay price by blood of our soldiers. For BM, the price is far less. And I daresay BM is far worse for our Nation than Terrorism. One group or the other will always get hit while changing the system. Whining is unacceptable. You better change your ways because India is changing.
