[thanixravindran]

Originally Posted by IndieGooner

https://www.onmanorama.com/news/kera...notes.amp.html

Bevco which is Kerala's beverages corp has apparently made an official circular instructing it's outlets to stop accepting Rs 2000 notes with immediate effect. Of course, considering how rare these notes are now, it's not going to really impact anyone. However, it doesn't feel right for a government corporation to stop accepting a denomination that RBI still terms as legal tender.

This is to prevent large scale note conversion through the big state government corporations. TN Tasmac issued the same order yesterday.

Grapevine is that this was a huge loophole in 2016 and state government liquor and transport corporations were used as conduit to change the unaccounted demonetised notes with lower value legal tenders in large scale unabated throughout the exchange period. I hope lesson was learnt and hope the high value note holdings were checked before this announcement.

[CarNerd]

This is stupidity of the highest order. I don't understand the deadline when banks can stop recirculating the notes whenever they receive them. What's the purpose of all this? Why should common man suffer again doing useless things? If demonitization was done to curb black money, why are they saying that ₹2000 notes are being withdrawn to curb black money again? What's the dumb logic behind all this?

[BhayanaV]

2000 note is being accepted easily in markets at Gurgaoan. If a shop owner gets few notes, he can easily get them changed per his convenience, don't see as an issue.
Are the banks verifying PAN etc while changing the notes?

Originally Posted by skanchan95

It's legal only on paper. No one in their right minds would accept the Rs 2000 note now for daily transactions.

But just like during demonetisation v1.0, it will become a business to exchange notes and many people will line up bank's to exchange the notes in behalf of you know who.

[GoBabyGo]

Hi, in my view nothing will change with Rs.2000/- currency note withdrawal. Those who have it in small numbers can easily get it exchanged at the cost of their time (majority of we the Indians have no value of time).

Those who have huge sum of 2000 notes (black money), will get plenty of time to get it exchanged at the cost of say 10% to 15% (may be 20%), but they will again generate money and make up the losses they made.

Problem will come to those who sold their property and get few lacs in 2000 currency notes. In most of the property sale cases, cash component is very common and some high property price cases, it can go over one crore or more in cash. Those nice people will have difficulty in converting such high cash.

I don't want to blame the government for this move because since beginning, it is very much clear that 2000 notes will be withdrawn sooner or later.

There is a political side to it but since this is against the rule of this community, I would not like to discuss it here (i.e. Electoral Bonda vs Cash donation to political parties).

Overall, I don't think 2000 currency note ban will impact to 99.95% of Indian population. The only thing we need to see which currency note will come (probably after 2024 election results), it could be 1000 note.

[am1m]

Originally Posted by GoBabyGo

The only thing we need to see which currency note will come (probably after 2024 election results), it could be 1000 note.

Do we need another high-value currency note? Haven't seen/used a 2000-rupee note in over a year, thought I'd miss the 1000 when they banned it, but again, have been doing just fine without it.

Though I think the demonetization decision was hasty and didn't achieve what the stated goal was at all- reduce black money, I think the other policies of the government like promoting UPI transactions and the like have actually gone a long way towards reducing the cash transaction aspect of the economy. So not sure if we need a higher value note. But of course my experience is limited to my life and needs, so would be good to hear more views.

[skanchan95]

Originally Posted by BhayanaV

2000 note is being accepted easily in markets at Gurgaoan. If a shop owner gets few notes, he can easily get them changed per his convenience, don't see as an issue.

Good then. In fact, someone I know is a dealer in construction materials told me that suddenly his builder & civil engineer clients have started paying in Rs 2000 notes towards payment of bills. For him, it is not an issue, as he deposits the cash in his firm's bank account nor can he say no to accepting the Rs 2000 notes. It's not illegal but one can see how this can be turned into a Rs 2000 cash exchanging tactic. But considering the amount he transacts daily and the sudden Rs 2000 deposits(which will be reported by the bank), it can become a a problem later if IT comes knocking on his door asking for the source of Rs 2000 notes.

Originally Posted by BhayanaV

Are the banks verifying PAN etc while changing the notes?

The note change exercise is commencing from tomorrow(23rd May). As of now, while exchanging notes, one is supposed to fill a form at the branch and show any one of the original photos IDs- Aadhar, PAN, Voter id, Driving License etc. The process is basically the same as cash exchange during Demonetization v1.0. The cash exchange form will look something like this:


Secondly, banks have been asked to keep a full track of how many Rs 2000 notes are being exchanged/deposited by whom/and to which account. Daily cash balances, transactions are to be reported. Apparently, during Demonetization v 1.0 , a few branch in charges were involved in cash exchanging scams. They are attempting to stop that as well.

There are no restrictions on deposit of Rs 2000 notes in one's bank account. Also no separate form has to be filled for Rs cash deposit in the account(other than normal cash deposit slip)

There are rumors floating around that SBI has done away with the need of filing a form & presentation of ID proof for exchange of Rs 2000 notes. Not sure how true it is. If true, it defeats the entire purpose of this exercise.

Rs 2000 Note Exchange In SBI: No Form Or ID Required; Check Latest Update Here

The Reserve Bank on Friday announced withdrawal of Rs 2,000 currency notes from circulation but gave public time till September 30 to either deposit such notes in accounts or exchange them at banks.

Further, SBI said that no identity proof is required to be submitted by the tenderer at the time of exchange.

The bank’s clarification came after rumours and misinformation surfaced on social media asking customers to submit a form along with identity documents.

[GoBabyGo]

Originally Posted by am1m

Do we need another high-value currency note? Haven't seen/used a 2000-rupee note in over a year, thought I'd miss the 1000 when they banned it, but again, have been doing just fine without it.

Though I think the demonetization decision was hasty and didn't achieve what the stated goal was at all- reduce black money, I think the other policies of the government like promoting UPI transactions and the like have actually gone a long way towards reducing the cash transaction aspect of the economy. So not sure if we need a higher value note. But of course my experience is limited to my life and needs, so would be good to hear more views.

Hi, I have been doing digital transactions since Jan 2021 (before that 100% cash transaction). I am fine with both and I personally feel that cash transaction has some kind of value to it because when we pay via cash, we actually feel we have spent money, it is very emotional feeling which is difficult to express in words. Digital transaction is good, but have no connect betwen both the parties.

I would like to clarify that not necessary those who are doing cash transactions are black money hoarders (or using black money).

Regarding cash transactions, I read that current cash in circulation is almost double than the time of demonetization.

Let me be very honest, Govt. can track who paid electoral bond to which political party and can threaten that company or person. But it is difficult to track who paid cash to which political party. (I am sorry to put it straight which is against the rule of this forum).

[.sushilkumar]

Originally Posted by skanchan95

There are rumors floating around that SBI has done away with the need of filing a form & presentation of ID proof for exchange of Rs 2000 notes. Not sure how true it is. If true, it defeats the entire purpose of this exercise.

Seems like true

https://www.businesstoday.in/industr...152-2023-05-21

IMO, this is like giving a lifeline to hoarders

[ads11]

Quick question. For those overseas who might have 2000 INR notes (not that I have that many), and can't make it back prior to the September deadline, am I correct in assuming I'll have to go to the bank and basically state the above to get it changed? I'm guessing it'll be paperwork rigmarole but it will be doable.

I got lucky when demonitisation happened a colleague was going to do fieldwork in India so just gave her all my cash. Little did either of us know the momentous announcement that was due 2 days after she landed. She was able to hand over the money to my parents and had to contend with using the university credit card for the trip.

Are there plans to bring the 1000 INR note back then or is the 500 going to be the highest denomination going forward?

[NiInJa]

Like some members said, this won't be a problem for common people having daily transactions or legit ones that involve book keeping as the 2000 Rs note was long gone already. For people doing cash payments for land deals, government bribes (the high level ones around contracts/promotions etc), they have until September to figure out how to 'circulate' this stash.
Expect gold purchase to hit new highs for a few days.

[ketan007]

I haven't seen or used 2000 rupees notes for a long time. I doubted it had already been discontinued for circulation. Recently, I withdrew a decent amount of money from the ATM, and it was only 500 rupees notes. So, I guess this move won't affect common people like me much. People hoarding large amounts of unaccounted money might be in trouble.

[dragracer567]

Whether this decision is justified or not is one thing. But if the government keeps undermining confidence in the rupee like this, then we can kiss goodbye the dream of making the INR a global reserve currency. If we Indian citizens can’t be confident of the notes we hold, how will foreigners have any sort of confidence?

[Everlearner]

Today's situation is a quite a lot different to 2016 demonetization. The digital framework of UPI is very widely used from road side chai/sandwich wala to five star hotels. This itself has been helped tremendously by demonetization due to which people were forced to switch to digital mediums.

The high denomination notes are hardly useful to common people and are not really required for effective function of an economy when there are effective digital channels as an alternative. Remember that the biggest currency note in US is a $100 note and their digital payment system is also IMHO not as matured as ours.

With such a large country and population, any drastic measures or changes will have to go through some iterations to achieve the final objective. This was only a logical next step to the demonetization and is a required one to achieve the final goal of no large denomination notes and pushing people towards more digital transactions.

[fhdowntheline]

I would say that they should push demonetisation to the limit by having only up to 100 rs and subsequently using banking transaction tax as a major component of tax revenues.

[PreludeSH]

People with black money who will exchange their 2000 rupee note is not an issue, right ?

This exercise is not meant to weed out black money. Its just to stop 2000 notes.