Currency Demonetisation and Future course of Indian Economy

[Bart S]

The ifrastructure exists for that in India. I find the entire business of traders / marriages etc not getting paid, cant order stock etc hugely over blown. All they need is to start writing cheques and using electronic payment. Anyone can well give a cheque or pay electronically to the Mandap, to the wedding band wala, the caterer, to the cab service, to the jeweller, and even to the priest!

Just one hypothetical pooch:
For any e-payment, we have to add a benificiary and wait 30 mins for activation and 1st 2 days, have to wait for 50k max limit....how is this usually worked around if we want to make a instant payment for some dealing and they cannot wait 2-3 days for the cool-off period of NEFT/IMPS/RTGS.

IMPS is instant, 24x7 irrespective of bank holidays etc. UPI (which uses IMPS as its core infrastructure) is instantaneous as well.

I have not used RTGS but I understand that it is pretty fast as well, typically a few minutes. And transfers between accounts in the same bank is instant too.

[chetak]

Modi listened and now this congi ahole is complaining??

[GeorgeM]

[

I would suggest you read previous posts, particularly those by Suraj. These things are discussed already. No, not all BM is in liquid cash, most is locked in RE/Gold within the country. But over the time, the valuation of those things will fall. Also not all BM is idle money, some of it comes out as consumption. So we should see reduction in consumption in short terms.

Next hammer might fall on Benami properties, which will unlock more BM from RM or that which is hidden in books of benami companies. YOu can imagine the consequences.

For overseas BM, nationalisation of those assets can be done once GOI is confident enough that they have done the homework. Surely they are doing it, if you have observed over last two years, in the form of amended tax treaties with tax havens, data sharing treaties with many countries. It has to start from somewhere. This is where it is starting from, where GOI finds itself in full control. Bringing in money from outside is not totally under GOI control. But it could happen one day, who knows.

All these are great. Just that it is reactive. Horse has left the barn and now we are sending catchers. However great the catchers are, success rate is a hope.
I have mentioned in one of my previous posts here, a proactive measure would be - unless we kill this high taxation AND expand tax base, this BM is here to stay. This demonetization is just a reset button. This BM hunt today is one turbulent exercise.
My mouth frothing here is just that, too many folks are just too blind to see what is coming at them. Two headlights coming at you a great speed is not necessarily two bikes, there could be metal in between them.

[jamwal]

Please spread far and wide :

Image

^^^Will happily spread far and wide if assisted with translation, please.

1st Balloon - 500 and 1000 Rupees notes discontinued.
2nd Balloon - Kejru crying: This is all Modi's conspiracy. Atleast should have allowed a few months to enjoy.
On Bag- Party donations
Paper Reads- Suspicion of scam . Donation information missing from AAP website since many months.

[Sachin]

Is there any estimate of how much new 500 and 2000 notes will be printed. What are the ways BM can get their hands on this and revert to their old ways ?

The new order for this "marking" of people, and the reduction in the exchange limits (Rs.2000 over the counter) seems to indicate that the "official" limits are getting reached. This would further get reduced. Because the government just cannot go on replacing every Rs.500 note they come across for ever.

BM can withdraw any amount from my bank via check right ? Just because paper trail is there doesn't necessarily mean that IT scryituny will happen. And when it does what about paying off the IT officer , court cases etc.

Hmm. I feel there can be chances that BM could have made in a large deposit, and then start negotiating with the IT dept. through CAs etc. I don't think BM holders would just go down without a fight unless they have been purely into illegal businesses.

[Bart S]

[

I would suggest you read previous posts, particularly those by Suraj. These things are discussed already. No, not all BM is in liquid cash, most is locked in RE/Gold within the country. But over the time, the valuation of those things will fall. Also not all BM is idle money, some of it comes out as consumption. So we should see reduction in consumption in short terms.

Next hammer might fall on Benami properties, which will unlock more BM from RM or that which is hidden in books of benami companies. YOu can imagine the consequences.

For overseas BM, nationalisation of those assets can be done once GOI is confident enough that they have done the homework. Surely they are doing it, if you have observed over last two years, in the form of amended tax treaties with tax havens, data sharing treaties with many countries. It has to start from somewhere. This is where it is starting from, where GOI finds itself in full control. Bringing in money from outside is not totally under GOI control. But it could happen one day, who knows.

All these are great. Just that it is reactive. Horse has left the barn and now we are sending catchers. However great the catchers are, success rate is a hope.
I have mentioned in one of my previous posts here, a proactive measure would be - unless we kill this high taxation AND expand tax base, this BM is here to stay. This demonetization is just a reset button. This BM hunt today is one turbulent exercise.
My mouth frothing here is just that, too many folks are just too blind to see what is coming at them. Two headlights coming at you a great speed is not necessarily two bikes, there could be metal in between them.

What a load of horseshit (no pun intended). Please provide specific examples and details of which big 'horses' have escaped.

Also, where did the PM say that no further measures will be taken. Based on his speeches where he has hinted at more action to come, there is a very good chance that this is the first step in many, and along with GST the tax structure that leads to corruption will be rationalized as well. If you are expecting the govt to provide an exact blueprint detailing the steps so that the criminals can take evasive action, that is simply not going to happen.

[Bart S]

Looks like in addition to the Kashmiri terrorirists, Maoists, BD 420s the kerala CPM network will be a collateral damage in the demonetization drive.

Saar, are you saying that the CPM is very different from the aforementioned parties? Ideologically at least their sympathies align perfectly with them.

[Akshay Kapoor]

[

I would suggest you read previous posts, particularly those by Suraj. These things are discussed already. No, not all BM is in liquid cash, most is locked in RE/Gold within the country. But over the time, the valuation of those things will fall. Also not all BM is idle money, some of it comes out as consumption. So we should see reduction in consumption in short terms.

Next hammer might fall on Benami properties, which will unlock more BM from RM or that which is hidden in books of benami companies. YOu can imagine the consequences.

For overseas BM, nationalisation of those assets can be done once GOI is confident enough that they have done the homework. Surely they are doing it, if you have observed over last two years, in the form of amended tax treaties with tax havens, data sharing treaties with many countries. It has to start from somewhere. This is where it is starting from, where GOI finds itself in full control. Bringing in money from outside is not totally under GOI control. But it could happen one day, who knows.

All these are great. Just that it is reactive. Horse has left the barn and now we are sending catchers. However great the catchers are, success rate is a hope.
I have mentioned in one of my previous posts here, a proactive measure would be - unless we kill this high taxation AND expand tax base, this BM is here to stay. This demonetization is just a reset button. This BM hunt today is one turbulent exercise.
My mouth frothing here is just that, too many folks are just too blind to see what is coming at them. Two headlights coming at you a great speed is not necessarily two bikes, there could be metal in between them.

Hahahaha....everybody who has losts of kaala dhan lying around is frothing and looking at headlights etc

[JayS]

[

I would suggest you read previous posts, particularly those by Suraj. These things are discussed already. No, not all BM is in liquid cash, most is locked in RE/Gold within the country. But over the time, the valuation of those things will fall. Also not all BM is idle money, some of it comes out as consumption. So we should see reduction in consumption in short terms.

Next hammer might fall on Benami properties, which will unlock more BM from RM or that which is hidden in books of benami companies. YOu can imagine the consequences.

For overseas BM, nationalisation of those assets can be done once GOI is confident enough that they have done the homework. Surely they are doing it, if you have observed over last two years, in the form of amended tax treaties with tax havens, data sharing treaties with many countries. It has to start from somewhere. This is where it is starting from, where GOI finds itself in full control. Bringing in money from outside is not totally under GOI control. But it could happen one day, who knows.

All these are great. Just that it is reactive. Horse has left the barn and now we are sending catchers. However great the catchers are, success rate is a hope.
I have mentioned in one of my previous posts here, a proactive measure would be - unless we kill this high taxation AND expand tax base, this BM is here to stay. This demonetization is just a reset button. This BM hunt today is one turbulent exercise.
My mouth frothing here is just that, too many folks are just too blind to see what is coming at them. Two headlights coming at you a great speed is not necessarily two bikes, there could be metal in between them.

OK Saar. Only you can see what's coming. We are all idiots here.

BTW if you have not noticed until now, Modi came only about 2.5yrs ago. And he started working against BM right away. He could not have taken proactive steps in 1947 to stop all that BM generation. And now to stop that he first has to clean the system. And that what he is doing. Call 80-90% Indians stupid, blind, idiots and what not, people know what's happening and are supporting Modi duly.

[Akshay Kapoor]

I had left BR but I am back till this yagya is over. I'm loving it. Two posters have already given me lots of kala dhan details of people they know which I have reported to PMO under my name. Go Modiji Go...we are with you.

My mom - secular, sophisticated liberal - nuetral on Modji is now a big fan. Dad, fauji retd cant hold his smiles back, I ex fauji also cannot hold my smiles along with almost everybody from my generation. Domestic help, autowalla who stays in the quarters behind the house all say 'Bhaiya bahut accha hua. Thodi problem hai par dekh lenge'. Keep the faith with people and the people will be with you.

[GeorgeM]

[
What a load of horseshit (no pun intended). Please provide specific examples and details of which big 'horses' have escaped.

Horses that left upto demonetization ! Not after

Also, where did the PM say that no further measures will be taken. Based on his speeches where he has hinted at more action to come, there is a very good chance that this is the first step in many, and along with GST the tax structure that leads to corruption will be rationalized as well. If you are expecting the govt to provide an exact blueprint detailing the steps so that the criminals can take evasive action, that is simply not going to happen.

Aren't these again just hope. Based on the chaos we have seen so far in implementing, including rule changes several times, piss poor planning, lack of understanding of its impact to underlying economy etc.. I wouldn't bet further actions would be any better.

PS: I guess I am coming across as a Modi hater. I am not, just that I dont trust this govt anymore. I am just surprised so many here has so much trust.

[Akshay Kapoor]

Sidharth - just one question please don't mind - Kitna Hai ?

[JayS]

I had left BR but I am back till this yagya is over. I'm loving it. Two posters have already given me lots of kala dhan details of people they know which I have reported to PMO under my name. Go Modiji Go...we are with you.

My mom - secular, sophisticated liberal - nuetral on Modji is now a big fan. Dad, fauji retd cant hold his smiles back, I ex fauji also cannot hold my smiles along with almost everybody from my generation. Domestic help, autowalla who stays in the quarters behind the house all say 'Bhaiya bahut accha hua. Thodi problem hai par dekh lenge'. Keep the faith with people and the people will be with you.

+1008

[JayS]

Sidharth - just one question please don't mind - Kitna Hai ?

Hai nahi saar - tha..

I have been taggin with this same question on Twitter to every naysayer putting up some phony reasons to oppose the decision. I mean one could even talk if there are some logical points. Even GOI is doing everything to plug the holes. But some people want everything to done without so much as a pin-prick to their asses. The biggest wrong thing with India has not been the bad politicians but the irresponsible people who think just by giving vote once in 5yrs their duty of keeping the democratic system functioning well is over. And now that PM is doing right thing, some people cannot even lend full hearted support.

[Akshay Kapoor]

[RajeshG]

I find some of the views in this thread very strange. It seems a lot of people on this board must be salaried employees working in IT. For many of us the only real business is the one that works just like the MNC we work for. And the rest should just change and be like our beloved MNC. Unfortunately that isnt how the rest of India is (outside the IT industry).

Also for everybody yearning for plastic money just like in phoren, please understand that after the last 2008 crisis a lot of people actually went thru the trouble of cutting the plastic cards. Yes people in phoren also did this if that helps convince people.

And no BM wasnt the only thing responsible for high RE prices. I think easily available home-loan industry is also responsible for inflating the prices in the last couple of decades. But at the same time the loan industry must be responsible for higher jantri values, resulting in higher stamp duties for govt and lesser BM %age in RE deals ( from 80% to 10% is my guess). But the consumer still ends up spending more on RE - just that its this ultra white money. i dont know if the sum total while looking just like phoren is actually good for everybody or not. there are lots of gyanis on this board and i would rather hear more nuanced opinions/analysis from them then just modiji-ki-jai, modiji-sab-thik-karenge.

I also dont think of cash as neccesarily bad. As a thought experiment, i asked many of my elders what would they prefer (a) inflated account with random numbers (b) thick wad of cash (c) gold (d) land. They all preferred d, followed by c then b and nobody actually cared for a.

[Akshay Kapoor]

See this will build character and bring you closer to Moksha....less attachment to worldly goods. Modiji is doing a lot for spiritual upliftment too

[JayS]

Also for everybody yearning for plastic money just like in phoren, please understand that after the last 2008 crisis a lot of people actually went thru the trouble of cutting the plastic cards. Yes people in phoren also did this if that helps convince people.

OK please give your nuanced opinion on how spending some money by cash is different than spending the exact same money by debit card..??

The only reason I prefer debit card, is because its traceable transaction and difficult to hide from authorities in an increasingly digitalised systems. I don't want to give my hard earned money to some businessman, who has perhaps never paid tax in his entire life, so that he will stash it in his tijori or lock it in some RE property hidden from government without paying his dues to the development of the country.

And personally I feel one should only spend as much as his bank balance is and I am totally against credit cards. I have lived through a extreme cash crunch situations for quite a few years when my father who was state gov employee would not get payments for 3-4 months at stretch and we never faced any issue whatsoever, because almost all businesses related to essential things in India used to work on monthly credit system. We never felt need for personal loans or credit cards. Even now I never felt need to take Credit card. I know why some people feel credit cards are essential, particularly those with home loans - but until one spends only as much as he can pay back in next billing, that's just fine and its not doing any damage to the economy as such. Saying "plastic money will increase reckless pending' is pure bullshit.

[Bart S]

Also for everybody yearning for plastic money just like in phoren, please understand that after the last 2008 crisis a lot of people actually went thru the trouble of cutting the plastic cards. Yes people in phoren also did this if that helps convince people.

What does credit card debt (presumably further worsened by the subprime crisis) have to do with electronic payments, which is what we are discussing here, or for that matter the wider objective of making legit cash payments as opposed to black money cash payments?

As with the rest of your post, you are conflating unrelated things and trying to prop up your argument.

[JayS]

Just one hypothetical pooch:
For any e-payment, we have to add a benificiary and wait 30 mins for activation and 1st 2 days, have to wait for 50k max limit....how is this usually worked around if we want to make a instant payment for some dealing and they cannot wait 2-3 days for the cool-off period of NEFT/IMPS/RTGS.

IMPS is instant, 24x7 irrespective of bank holidays etc. UPI (which uses IMPS as its core infrastructure) is instantaneous as well.

I have not used RTGS but I understand that it is pretty fast as well, typically a few minutes. And transfers between accounts in the same bank is instant too.

For some stupid reason, I once found out that, SBI does not allow IMPS outbound transactions on Saving accounts after 8pm. Totally inexplicable.

[RajeshG]

OK please give your nuanced opinion on how spending some money by cash is different than spending the exact same money by debit card..??

Its a big difference. Try buying a cigarette with debit card. Jaitley for eg kept on insisting in aap-ki-adalat to just issue checks to bandwallahs in weddings. Just today RBI has said parents can withdraw 2.5 lacs for wedding. It just goes to show that its not a foolproof system. There are practical issues, they will need to be fixed. And saying there is a practical issue doesnt mean somebody is saying modiji-haay-haay.

Similarly there are many other practical issues. The APMC markets are all shutdown in many states. A solution needs to be found out so economy can go back to normal. Liquidity is maintained and slowdown in economy is minimized.

It doesnt help to just keep on saying modiji-ki-jai and lets get rid of cash.

[JayS]

OK please give your nuanced opinion on how spending some money by cash is different than spending the exact same money by debit card..??

Its a big difference. Try buying a cigarette with debit card.

Who said one has to go buy single cigarette with dabit card..?? Obviously one will not used card for all small small transactions. Tell me above a certain limit, say Rs 500, what is the big difference between spending by cash and by debit card. How does that affect liquidity in the market. How does that affect the consumption.

[pankajs]

Aren't these again just hope. Based on the chaos we have seen so far in implementing, including rule changes several times, piss poor planning, lack of understanding of its impact to underlying economy etc.. I wouldn't bet further actions would be any better.

Chaos - Understandable given that the steps couldn't be discussed with the bank/bank staff without giving away the plan.
Rule change - Understandable given that the brain trust was less than 10 to maintain secrecy of the plan.
Piss poor planning - Understandable given that the brain trust was less than 10 to maintain secrecy of the plan. He couldn't rope in the bank staffs fro that would have given the whole thing away.

Lack of understanding to the underlying economy - Can't remove cancer without either a major surgery or big dose of radiation or both. Will weaken the body in the short-term. Why does one assume that GOI did not understand that there will be short-term dislocation in the economy. It is just that No amount of planning is going to cover ALL the bases.

All the above have been discussed before in the thread. It is to the credit of the PM that he went ahead with the operation knowing fully well its risk to his government and party. Why else would he come on TV to roll out this initiative and ask for public co-operation? That does not happen every day or for every policy.

[shyamal]

In almost all cases of transactions below 4000 to 5000 replacing cash is going to prove futile. Govt should not waste their effort on it.
Trying to implement that(by lesser number of notes ) is going to be catastrophic for the economy in short term. And many people may not survive beyond the short term. The widespread support to this move is because people expected things to be fine in 2 weeks. They were ok to tolerate inconvenience and loss of income for 2 weeks. If there is liquidity shortage beyond that then the mood will change very very fast.

2000 notes should be restricted. 500 and 100(and 50) notes need to be in wide circulation. Otherwise there is big trouble after this weekend. Businesses are mostly running on credit at the moment. I am expecting a shortage of produce to start very soon if liquidity situation not rectified.

BTW - I don't have any BM and I am totally in favour of this move.
Has anyone got a 500 out of ATM till now?

[kmkraoind]

See the hoards of currency (in this tweet video). My blood boils, bcz its our (taxpayers) money or money came from Pakistan to create blood bath.

https://twitter.com/rishibagree/status/799205045841653760

[vnms]

Rajesh, no one here is claiming zero cash society. When they say cashless, it means no large cash transactions. Please use your god given brains. Lower denominations are ok.

[vina]

In almost all cases of transactions below 4000 to 5000 replacing cash is going to prove futile. Govt should not waste their effort on it.
Trying to implement that(by lesser number of notes ) is going to be catastrophic for the economy in short term. And many people may not survive beyond the short term. The widespread support to this move is because people expected things to be fine in 2 weeks. They were ok to tolerate inconvenience and loss of income for 2 weeks. If there is liquidity shortage beyond that then the mood will change very very fast.

2000 notes should be restricted. 500 and 100(and 50) notes need to be in wide circulation. Otherwise there is big trouble after this weekend. Businesses are mostly running on credit at the moment. I am expecting a shortage of produce to start very soon if liquidity situation not rectified.

BTW - I don't have any BM and I am totally in favour of this move.
Has anyone got a 500 out of ATM till now?

I agree. The problem is the "last mile" in the Indian economy is purely cash based and unorganised (think tela wala, the push cart vendor, hawker etc..). The fruit and veggie distro is usually via those channels as well. That said the Mandi wala/wholesale trader / transporter/lorry owner level will have the means to settle things with cheque/electronic transfer. So credit is not frozen, nor are transactions. It is only the CASH based micro economy that is hit.

What needs to go electronic is the larger spend part and the use of currency to store value and hand bribes. There should be a cash withdrawal tax introduced (roughly 2%) and electronic payments charges sharply reduced so that the incentives towards cash based economy goes down further and the system becomes more electronic, hence accounted and with the sunlight shining on it in full glory, gets taxed as well.

[symontk]

SBI deposits at 1.14 lakh crores - which means about 5 lakh crore has come back.

How do you know about 5 lakh crores? I was also wondering about SLR and CRR deposits in banks. Those should be in 50 & 1000's

[shiv]

Question for Suraj,

Is there any estimate of how much new 500 and 2000 notes will be printed. What are the ways BM can get their hands on this and revert to their old ways ? BM can withdraw any amount from my bank via check right ? Just because paper trail is there doesn't necessarily mean that IT scryituny will happen. And when it does what about paying off the IT officer , court cases etc.

Not Suraj, but there are at least 3 black monies. Demonetization only stops 1 & 2 , not 3
1. Black money 1: hoarded stash in cash not declared as income and tax not paid
2. Black money 2: Counterfeit notes

3. You pay me Rs 1000 for consultation - I do not declare it as part of my income . In 30% tax bracket I should have paid 300 tax, and have been left with Rs 700 for the Rs 1000 you paid me. But I am now Rs 300 richer and the govt loses that 300. I spend that 1000 and I have wrongfully gained extra value out of the money you paid me and have not played my part in building up national finances for education, health, defence etc.

With millions like me the government loses lakhs of crores worth of money which is black money in circulation. This is continuing and will go on. The only way to reduce it is to bring money into the banking system and encourage people to use the banking system with debit, credit cards, mobile wallets etc. Real Estate in particular needs solid reform - which is tough considering that in really corrupt places like Bangalore there are_no_land_records

[shiv]

In Gujarat, Bribe Of Nearly 3 Lakhs Paid Entirely In New Rs. 2,000 Notes

[RajeshG]

Real Estate in particular needs solid reform - which is tough considering that in really corrupt places like Bangalore there are_no_land_records

An interesting thing i have noticed is that a decade or so ago the ratio of cash-check was 80-20 or something like that. These days its the other way around. The jantri values have gone way up. Meaning you have to pay so much money by check anyway. I dont have knowledge about rural land but if jantri values get fixed in rural lands as well then a similar thing will happen and it would become impractical to have a large cash element in those deals.

[alexis]

^^ The circle rates in real estate has gone up drastically in last 2 years. Hence black money in real estate has come down.

The generation of black money needs to be addressed next - under reporting income by professionals, traders and businessmen needs to be stopped along with bribes. It will be a very difficult task but needs to undertaken.

Current situation is still bad - ATMs are still running dry; queues are slightly short but not short enough. Nobody is accepting 2000 rs notes. If Rs.500 notes come into circulation quickly, many issues would be solved.

Bank staff is fully engaged with this note exchange/deposit / withdrawal activity. Fatigue has set in (it is now more than a week).

If things dont improve soon, people are likely to turn against this move.

[Sachin]

3. You pay me Rs 1000 for consultation - I do not declare it as part of my income . In 30% tax bracket I should have paid 300 tax, and have been left with Rs 700 for the Rs 1000 you paid me. But I am now Rs 300 richer and the govt loses that 300. I spend that 1000

Now you may not get much by spending Rs.1000, so you start hoarding it which leads to "1. Black money 1: hoarded stash in cash not declared as income and tax not paid" again .

Real Estate in particular needs solid reform - which is tough considering that in really corrupt places like Bangalore there are_no_land_records

Two weeks I manage to meet a gentlemen during another function; and it was only much later that I realised that he was a judge . He did mention that as a lawyer he was one of the earliest people to start offering the verification services to people interested in buying lands. And as per him, starting 1990 onwards pretty much every major land deal in cities like Bangalore and its suburbs had some sort of illegality in it. May be in the old layouts of Jaya nagar etc. things may have been on proper records.

[shyamal]

If things dont improve soon, people are likely to turn against this move.

Completely agree. And "soon" is most likely another 2-3 days maximum.
Releasing Rs 2000 was a bad move. They should have released rs 500.

Has anyone got a 500 yet? from bank or ATM? I don't know anyone who has got it.

[vijayk]

https://twitter.com/rishibagree/status/ ... 5841653760

Caught in train from calcutta with suitcases of currency

[RajeshG]

^^ The circle rates in real estate has gone up drastically in last 2 years. Hence black money in real estate has come down.

yes agreed - hence i cannot figure out where the actual cash would be.

also agree that situation is still risky. rural economy is at a standstill and it needs to be fixed. RBI announced some measures to open things up today but i dont know if thats enough. weddings are also very risky politically - people remember ruined weddings for a long time. so there are definite political and economic risks.

[Philip]

Third day with no exchange money available at my bank.ATM closed,no new notes.I have to go again tomorrow for my weekly "ration"! The situ is deteriorating fast.The govt. should show a human side to its crusade against corruption.How can an ex-BJP MP/tycoon ,the mining mogul from Bellary conduct such a vulgar and nauseating display of excess at his daughter's wedding in BLR? It makes a mockery of everything that Modi trying to do. The cost an approx $75M! That too when people are starving. The BBC showed long Qs of women in Rajasthan,etc.,waiting in the villages for notes.Some were in the Q from 4am. Thus far 40 have died while in Qs,etc. Unless there is massive relief soon,the tables will turn on Mr.M with a vengeance.

Read the front page of the Ind.Exp."Currency crisis deepens",with detail of how hawala racketeers are using a new route,other banking services paralysed,etc.We are experiencing grim times.

http://epaper.newindianexpress.com/1004 ... 6#page/1/2

[shyamal]

Plenty of exchange money available in the banks in Kolkata. No crisis of that yet.
The problem is the long queues and the lack of cash in ATMs.

[vinod]

If things dont improve soon, people are likely to turn against this move.

Completely agree. And "soon" is most likely another 2-3 days maximum.
Releasing Rs 2000 was a bad move. They should have released rs 500.

Has anyone got a 500 yet? from bank or ATM? I don't know anyone who has got it.

Looks like so-called "people" are waiting for something to create violence. I'm pretty confident they will try this pretty soon.

[shyamal]

If this situation continues on next Monday then you wont need troublemakers. Those wholeheartedly supporting till now will not want to suffer any more. People have been very patient till now. There is a limit to that.

Not everyone is middle-class IT-savvy folks like us.