IMPORTANT: Reserve Bank to withdraw all pre-2005 currency notes from circulation

[image]

What should I do with these (pre 2005), I have kept them safely for last many years.

I know can exchange it with 4k easily but it feels good to have packets like this, specially of lower denomination.

PS: I have 1 full packet (100 notes) of Rs.1/- notes, which I am keeping surely.

*i.imgur.com/K35tEnB.jpg

 

[sling-shot]

Black Money is money gained from illegal activities. Counterfeit money is fake currency notes.

Not necessarily. It means undeclared money. It may be from illegal activities or from legal sources but undeclared to the government generally for saving taxes.

 

[Desmond]

Not necessarily. It means undeclared money. It may be from illegal activities or from legal sources but undeclared to the government generally for saving taxes.

I was thinking about Breaking Bad and how they launder the money.

 

[dashing.sujay]

I know can exchange it with 4k easily but it feels good to have packets like this, specially of lower denomination.

PS: I have 1 full packet (100 notes) of Rs.1/- notes, which I am keeping surely.

Hi5

 

[Flash]

What should I do with these (pre 2005), I have kept them safely for last many years.
I know can exchange it with 4k easily but it feels good to have packets like this, specially of lower denomination.
PS: I have 1 full packet (100 notes) of Rs.1/- notes, which I am keeping surely.

You've got a different hobby.
Btw, it's 2005 and still looks new..

 

[Akira]

Not necessarily. It means undeclared money. It may be from illegal activities or from legal sources but undeclared to the government generally for saving taxes.

+1 to this. Black money has gained serious noteriety in our country because people think that only big corrupt netas/Ambanis/Greedy builders have black money stored. That's not true. Even the common shopkeeper or wage-earner, who already earns rather less(and has to give a cut from it to the government), always hesitates and has quite a bit stored in the parallel undeclared accounts(or in cash). People in the higher class like Jewellers have the same.

No, only 10 units of notes.

Slight more clarification: The exchange of notes starts on April 1. Any transactions above Rs. 10 lakh(which is undoubtedly a biiig amount in cash)will be tagged with your identity(meaning 9,99,999 won't ). If more than 10 notes(of 500 or 1000) are exchanged from 1 July, identification is needed.

If RBI want to do anything, stop all the high currency notes 500 & 1000 . this will give people a problem for time being but fake currency will be stopped. It can force the business to accept card & this will reduce black money to certain extent.

This is not unreasonable, but it is very impractical. Cash continues to be the predominant payment means of transactions in India. A compositional shift is underway in the form of a gradual replacement of lower denomination banknotes by higher denomination banknotes, particularly Rs.500.

Property today is more expensive than gold. 300 sq. ft. of commercial area in Connaught Place in Delhi costs Rs 1.2 crore (just an example). All the big transactions are made more easier when paying in cash, in denominations of 500 and 1000.

Besides, it's not as if using electronic cards completely stops fake currency. I severely reduced ATM usage when I received 300/- worth of fake notes(3 fake 100s). These people always find a way. At least right now, you can be more cautious and check whenever you receive a 500 or 1000 note. You stop the circulation-and then you might have to check every note you receive.

 

[sling-shot]

The currency came to be for a reason. It is still the only universally accepted means of paying. At least at the local level. And it is does not depend on factors like electricity, network signal, remembering passwords to work. It is a good backup option at least if not primary. Although almost all high value transactions have gone electronic / banking except real estate, even the amount involved in day to day transactions is also quite significant. And I would rather have my wallet lifted anonymously rather than be kidnapped to reveal my ATM PIN and later hacked.

So people advocating the withdrawal of 500/1000 notes, please take a reality check from me (I know you would prefer that)

 

[Nipun]

If RBI want to do anything, stop all the high currency notes 500 & 1000 . this will give people a problem for time being but fake currency will be stopped. It can force the business to accept card & this will reduce black money to certain extent.

This is a great step too. Not all, but a significant amount will come to the government.

 

[sksundram]

Update:
................
Notes printed before 2005 will remain legal, says RBI
i.India's central bank, the Reserve Bank of India (RBI) has clarified that the currency notes that were printed before 2005 will continue to be legal tender.
ii.The central bank said that the move to withdraw banknotes printed prior to 2005 is aimed at pulling off these bank notes from the market.
iii.The central bank pointed out that it is a common global practice to withdraw older series notes. The central bank said that the notes printed prior 2005 "have fewer security features compared to banknotes printed after 2005."
iv.The central bank clarified its statement dated January 22 following questions from the banks.
v.The RBI also said on its website that it is already systematically withdrawing these notes from the market in a routine manner through the banks in the country.
vi.It said that the members of the public can exchange the notes at bank branches as per their convenience.
vii.Further, even July 1, 2014 onwards, members of public can exchange any number of these old series notes from the bank branches where they have their accounts," it said in a press statement.

 

[ash63425]

Update:
................
Notes printed before 2005 will remain legal, says RBI
i.*India's central bank, the Reserve Bank of India (RBI) has clarified that the currency notes that were printed before 2005 will continue to be legal tender.
ii. The central bank said that the move to withdraw banknotes printed prior to 2005 is aimed at pulling off these bank notes from the market.
iii.*The central bank pointed out that it is a common global practice to withdraw older series notes. The central bank said that the notes printed prior 2005 "have fewer security features compared to banknotes printed after 2005."
iv.*The central bank clarified its statement dated January 22 following questions from the banks.*
v.*The*RBI also said on its website that it is already systematically withdrawing these notes from the market in a routine manner through the banks in the country.
vi.*It said that the members of the public can exchange the notes at bank branches as per their convenience.
vii.*Further, even July 1, 2014 onwards, members of public can exchange any number of these old series notes from the bank branches where they have their accounts," it said in a press statement.

So that means this is no big step to curb black money? If it is a regular practice..

 

[sling-shot]

This is supposedly a move to curb counterfeit notes as the later notes are supposed to have better security.

Black money reduction was an additional advantage. But then it was probably opposed by influential *people *

 

[theterminator]

this was a good step as pre-2005 notes are hard to detect fake. newer notes have some impressive secure features that are hard to fake

 

[baccilus]

Thank God, I never withdraw more than 200 Rs at a time from the ATM.

But seriously, how do they expect everyone to turn over their cash? Unless they are giving alternative notes in exchange for the old notes.

They are also contemplating limiting ATM transactions to 5 over which each transaction will be charged. This includes your own ATM. I think days of withdrawing just 200 or 500 will be over soon.

 

[moniker]

^ Fair enough if they put the money to good use and employ security personnel at each ATM. Else if you have to pay a fee to withdraw your own money what's the use of depositing it in a bank.

 

[Nanducob]

nice..

 

[Skud]

^ Fair enough if they put the money to good use and employ security personnel at each ATM. Else if you have to pay a fee to withdraw your own money what's the use of depositing it in a bank.

Why should the customers bear the cost of security of Bank's ATM? It's entirely bank's responsibility. Apparently looks more like a ploy to milk the customers, more in the line of charging for every services offered by banks (like SMS alerts).

 

[whitestar_999]

blame it on govt or more specifically this:
Guard ATMs or shut down?
it seems that just like every other task govt wants to outsource law & order too because it would be naive to think that atm with a single unarmed guard will be able to deter criminals.

 

[sling-shot]

I just did a quick check of all the cash I have and I am glad to say that all of it is ok. I think most of the currency in general circulation now was introduced after 2005.

I have no faith in the ability of our esteemed central bank in arranging a hassle free exchange considering the difficulty I have to go through to exchange soiled / torn notes at present.

 

[vivek.virgo]

Unfortunately this won't help really as the black money system has established itself very strongly .... See Underground couriers rush to turn cash into gold - The Hindu

“We’ve done it before and we’ll do it again”, he added, “but it’s going to be tough.”