tag:blogger.com,1999:blog-19649274.post2889192854343275534..comments2024-03-29T12:03:50.891+05:30Comments on The Leap Blog: Surgical strike on old Rs.500,1000 notesAjay Shahhttp://www.blogger.com/profile/03835842741008200034noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-19649274.post-75356791461648492472016-11-13T00:06:00.606+05:302016-11-13T00:06:00.606+05:30[12/11 11:55 pm] Yogesh Joshi: I have few points t...[12/11 11:55 pm] Yogesh Joshi: I have few points to make<br /><br />1.Author says unaccounted cash is not synonymous to black money what is it denotes for ? Is it not tax evasion and if it is a white money then why those people's are not depositing money in Bank since there is no restriction on depositing money.<br /><br />2. If some industries are suffered for a short period then why should we worry if Long term impact is good.<br /><br />3. Magnitude if impact may be discussed but one thing is sure there will be a impact which we are witnessing. <br /><br />4.Since I am working in Banking industry for a quite long time I am witnessing a huge change in last ten years. Mechanism for cashless economy is already in place and increasing rapidly. There is a need change mindset of people's which is happening. In last few days there is a huge increase in electronics transactions. <br /><br />5.It is possible that earlier it might have failed I am not aware this time 86% of currency of total value is replaced which has not happened earlier ever.<br />[13/11 12:01 am] Yogesh Joshi: Refer to the last remark on Barma where author says there were riots and eventually Government was changed by way of coup. I certainly think that if government has to go on this point then also it is worth doing this. Most of the people of India are happy with the decision and are ready to bear with the situation. I can tell you with first hand experience I am witnessing. People in long lines are also supporting the decision despite of problems they are facing.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-66289045812997055302016-11-12T17:31:49.618+05:302016-11-12T17:31:49.618+05:30In case of the Govt's recent move, assuming so...In case of the Govt's recent move, assuming some of the un-accounted Currency doesnt get back into the system, the Currency in circulation should reduce. Would this reduction in RBI's liability be transferred to the Govt as a windfall gain or remain in RBI's balance sheet as reserves. It would be great if you could share your perspective as to what would be done.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-44045368585404076902016-11-11T12:53:00.575+05:302016-11-11T12:53:00.575+05:301. One aspect of this decision is how unpredictabl...1. One aspect of this decision is how unpredictably it hit. So even though using cash to store unaccounted wealth/income will not stop completely after this, it can reduce the attractiveness of the same, if those doing so are going to fear similar unpredictable declarations in the future. Now, it is debatable how likely is such threat and how this incidence has been perceived by cash hoarders. <br />2. It serves as a wealth tax since those who have way too large cash hoarding will have to lose some proportion of this cash among intermediaries and foot soldiers to retain partial value of those holdings. <br />3. I think informal credit and daily wage laborers will face most heat. For other sectors, they can shift more or less swiftly to cashless or credit based exchanges. For large cash based transactions like housing, jewellery etc., I think post-Diwali lull in the market will minimize the impact. <br />4. For real estate or Jewellery, I think some commentators have captured black-white transactions aspect between consumer and producer. But there might be much bigger role played by cash in the informal credit on which producers rely. Since such investors are set to lose part of their wealth, it will increase cost of capital and that might be the reason realty index experienced the correction. Buyer-seller cash transaction can be simply deferred by few days to avoid the current cash crunch. A Spectator https://www.blogger.com/profile/16164261047773458013noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-12069133508287953042016-11-10T13:44:25.009+05:302016-11-10T13:44:25.009+05:30can you deposit this currency multiple times in yo...can you deposit this currency multiple times in your current business account, I have a shop where the customer comes and offer me the currency of old notes, Do I accept them and deposit in my business account the next dayAnonymoushttps://www.blogger.com/profile/10412109211575134720noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-44065164464056891162016-11-09T16:09:08.181+05:302016-11-09T16:09:08.181+05:30This I believe is a masterstroke against fake curr...This I believe is a masterstroke against fake currency. Also would create liquidity crisis for the cash economy. The direct impact could be there in the upcoming elections. The dealers of Hawala, whose liquidiuty is essential for the black economy and the back channels, would be the worst affected, unless they find means to launder their black money. As suggested, the invested black money may not get affected by this stepDeepeshhttps://www.blogger.com/profile/11471321439048824718noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-83887869204421592016-11-09T13:53:14.669+05:302016-11-09T13:53:14.669+05:30This measure while politically correct I am not su...This measure while politically correct I am not sure has been thought through properly.Rich people have money in other colours and will manaage.The poor day labourer,vegetable vendor etc are today suffering.Sucking so much liquidity will hurt them deeply.All construction activity will come to a halt causing a deep recession and loss of work for the construction worker.Only time will tell how this plays out.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-39822996733692484282016-11-09T11:06:05.441+05:302016-11-09T11:06:05.441+05:30Useful commentary, thanks. I have a few follow up ...Useful commentary, thanks. I have a few follow up questions, if you may answer:<br />1) Do you have any kind of data which can tell us amount of hard cash circulating in black economy which might be affected via this move? It is a general saying that even in metropolitan cities we have 50/50 distribution between black and white distribution - so real estate dealers might be the one facing the most disruption, is it OK to assume that?<br />2) Distribution of cash to buy votes is something that we hear a lot, will this have an impact on that, i.e. this move might lead to a fair(er) elections. What are your thoughts on this?<br />3) How far are we from a cashless economy in terms of number of years (dematerialization was a great achievement in stock markets!), what timeline do you see for cash transactions.<br /><br />Net/net is it a positive step in your opinion or something leading to a coup(?) - that's way too extremeAnonymousnoreply@blogger.com