We are sure everyone is aware that old high denomination notes of Rs. 500 and Rs. 1000 are no longer valid in India. You cannot use them for cash payments anywhere. Until 30th December 2016, you can only deposit them in your bank account or get them exchanged at your bank. Currently people are only getting Rs. 100 notes in exchange, and it is advisable that people deposit the amount in their bank account rather than exchange it for cash. There is a limit on how much you can exchange from the bank teller, so make sure you only take Rs. 4000 for exchange.
Along with confusion, questions and hassle, there has been positive and negative impact with the entire situation.
Here are a few things that are good after the ban and some things are not looking too good.
The Good: –
Low rate of interest – Over the time, since banks are packed with cash deposited by the eager customers, there will be a surplus of money in banks which will lead to less interest rates on loans. Everyone is putting their money in the bank accounts which is a positive sign for banks and for those who might take a loan soon.
Immediate halt on black money or scams – The sudden announcement startled the entire nation and mostly those holding black money in their homes. People who have been hiding fake currency, black money of high denomination, robbed cash, etc. are in a fix as they have nowhere to go now. This idea is probably the best so far to stop black money scams in just few minutes.
Rise in digital transaction – With ATM withdrawal becoming limited and not many people having Rs. 100 cash in hand, there is a significant rise in digital money. Most websites and bill payment services are going digital which is incredible for the country.
The Bad: –
The poor will suffer – People who own vegetable carts, local vendors, small shops, fruit sellers, maids, etc. probably do not have bank accounts. They will not be able to exchange their notes easily, and they cannot accept Rs. 500 notes anymore. This can affect their business in a big way.
People taking advantage – Few people are getting notes exchanged from banks on a regular basis and making it a business thing. There have been a few reports of people telling others to give them Rs. 500 notes and in return they will give a change of Rs. 100 X 4. They are charging Rs. 100 as the service fee and basically robbing poor people.
Tourists and outsiders – People travelling for a few months outside the country might not get a chance to exchange the Indian currency they have. Also, how will tourists buy things in the country? What if they have already exchanged their dollars or currency at the airport 2 weeks back? Can they stand at banks for change?
There is always something good and bad with any decision made for the country. If you want to know more about the same, GST Bill, online discount brokerage and much more, keep reading this space.