Attention, Black Money Operators!!

[kalidas]

RBI to withdraw all pre-2005 currency notes
Mumbai, Jan 22, 2014 (PTI)



The Reserve Bank today decided to withdraw all currency notes issued prior to 2005, including Rs 500 and Rs 1,000 denominations, after March 31 in a move apparently aimed at curbing black money and fake currencies.

"After March 31, 2014, it (RBI) will completely withdraw from circulation all bank notes issued prior to 2005. From April 1, 2014, the public will be required to approach banks for exchanging these notes," the RBI said in a statement.

The public can easily distinguish the currency notes issued before 2005 as they do not have the year of printing on reverse side. The year of printing in a small font is visible at the middle of the bottom row in notes issued after 2005.


Asking people not to panic and cooperate in the withdrawal process, the Reserve Bank of India (RBI) said old notes will continue to be legal and can be exchanged in any bank after April 1.

"From April 1, 2014, the public will be required to approach banks for exchanging these notes. Banks will provide exchange facility for these notes until further communication," the RBI said.

From July 1, 2014, persons seeking exchange of more than 10 pieces of Rs 500 and Rs 1,000 notes will have to furnish proof of identity and residence to the bank.

Although the RBI did not give any reason for withdrawal of pre-2005 currency notes, the move is expected to unearth black money held in cash.

As the new currency notes have added security features, they would help in curbing the menace of fake currency.

At present, currency notes in denominations of Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 500 and Rs 1,000 are issued.

http://www.deccanherald.com/content/...-pre-2005.html

[kalidas]

My view is that this is an outstanding effort on RBI's part to flush out the menace of black money and fake currencies from India. This is clearly a brainchild of Raghuram Rajan.

This may sound like a trivial exercise, but it is going to impact black money hoarders big time. Imagine having Rs 5 crores locked up in a foreign bank. Now, they will be forced to change it if they would like to put it to use.

After July 1st, nobody will want to deal with currencies before 2005. My take is that black money operators are going to try and unload their cash hoard. I would expect Real Estate to shoot through the roof between now and July - especially high end properties. This might create a "trickle down" wealth effect and stock markets might see a significant spike.

Prepare for Sensex, Gold, USD, Swiss Franc, and Real Estate to rise. Black Market operators might offload their hoard and convert into alternate currencies, so prepare for INR to drop.

[swami]

RBI satiya gaya hi,its not that easy and I am sure banks will be opposing this move.
31st March is too early a deadline.

[kalidas]

Originally Posted by swami

RBI satiya gaya hi,its not that easy and I am sure banks will be opposing this move.
31st March is too early a deadline.

This is going to be an interesting story to follow. This should make money laundering difficult, so I'm curious to see how the cards unfold.

[Gr8_Hindustani]

Originally Posted by kalidas

This is going to be an interesting story to follow. This should make money laundering difficult, so I'm curious to see how the cards unfold.

I thought you only laundry your cloths

[swami]

I think something similar was started by the then PM Morarji Desai but the currency notes then in circulation was just a fraction of what it is today and Rs.1000 notes were only with the rich then.
Today 1000 and 500 notes are so common,yes blame it on the inflation that exchanging them would not be possible in such a short notice and is RBI ready with the new notes to give in exchange of the pre 2005 notes ?

[sgars]

Originally Posted by swami

Indian politics is now unpredictable

Another twist here.
Baba Ramdev says he may support Congress in Lok Sabha polls

India Today Online New Delhi, January 20, 2014 | UPDATED 09:29 IST



Yoga Guru Baba Ramdev said on Monday that he may support Congress in the upcoming Lok Sabha polls provided the party supports his proposal to replace all taxes with single tax on banking transactions.

"..If Congress accepts our proposal of single window taxation and single tax we will support it... we give Congress support but first they take initiative," Ramdev told reporters on the sidelines of a conference organised by the Institute of Chartered Accountants of India.

Ramdev has proposed a single Banking Transaction Tax (BTT) to replace all direct and indirect taxes.







Read on here
Now, this Banking tax is surely going to shift all the tax burden to the 'Service Class'. All the Bijness men would bypass the banks and go for the cash transactions.

[khaski_khopari]

Just curious what exactly is a Swiss bank account ? Is it a kinda locker where you can put your INR currency or what?

Anyone here has first hand experience of it ?

[swami]

Originally Posted by khaski_khopari

Just curious what exactly is a Swiss bank account ? Is it a kinda locker where you can put your INR currency or what?

Anyone here has first hand experience of it ?

Maybe thats what RBI thinks

[marvelous]

The Feku's party outsourced currency printing to foreign countries in 1998. Then they stashed away black money. Now when RBI ending all notes before 2005...
This type of decisions called a real political decision. Only congress can do this. India is safe under congress only that's why people do support congress.

In Gujarat the Feku got 44% of vote share in 2012 it means that still 56% Gujjus are rejecting the Feku.

[sgars]

Originally Posted by khaski_khopari

Just curious what exactly is a Swiss bank account ? Is it a kinda locker where you can put your INR currency or what?

Anyone here has first hand experience of it ?

It is like a bank account, but swiss have tough secrecy laws and if someone has an account there, no one knows about it easily.

No, not a first hand experience - i could only dream of being 1% as rich as those who may be have accounts in swiss banks

A piece from a Jeffrey Archer novel -


Ignatius Agarbi is the new Financial Minister of Nigeria. He begins a sweep on corruption and makes a name for himself. He is extremely honest, even insisting that his family vacations be billed to himself and not to his ministry. He is entrusted by his President to find out how many Nigerians have stashed their bribes in Switzerland.
He arrives at the Swiss Bank with a briefcase. Despite his greatest persuasion, the Swiss refuse to break their code of privacy. In the end, Ignatius places a gun to the head of the Swiss banker and threatens to kill him. Still the banker refuses to divulge any confidential information.
Ignatius, who is actually extremely corrupt, was only checking to find out if the Swiss Banks would actually reveal the name of an account holder. Delighted with their secrecy, Ignatius invests nearly $5 Million in cash which he has skimmed during his period as Financial Minister.

[sgars]

Originally Posted by khaski_khopari

Is it a kinda locker where you can put your INR currency or what?
?

The amounts that are being talked about will not fit in any locker

[sarv_shaktimaan]

Originally Posted by sgars

Another twist here.
Baba Ramdev says he may support Congress in Lok Sabha polls

India Today Online New Delhi, January 20, 2014 | UPDATED 09:29 IST



Yoga Guru Baba Ramdev said on Monday that he may support Congress in the upcoming Lok Sabha polls provided the party supports his proposal to replace all taxes with single tax on banking transactions.

"..If Congress accepts our proposal of single window taxation and single tax we will support it... we give Congress support but first they take initiative," Ramdev told reporters on the sidelines of a conference organised by the Institute of Chartered Accountants of India.

Ramdev has proposed a single Banking Transaction Tax (BTT) to replace all direct and indirect taxes.

this is good news for BJP.. now they can take his expenses out of their election spending.

[AmthaLal]

Originally Posted by kalidas

This may sound like a trivial exercise, but it is going to impact black money hoarders big time. Imagine having Rs 5 crores locked up in a foreign bank. Now, they will be forced to change it if they would like to put it to use.

You mean to say locked up in safe deposit vault? In "foreign" bank? 5 crores? How?

Originally Posted by kalidas

This is going to be an interesting story to follow. This should make money laundering difficult, so I'm curious to see how the cards unfold.

Agree with you.

[GpeL]

Originally Posted by kalidas

Imagine having Rs 5 crores locked up in a foreign bank. Now, they will be forced to change it if they would like to put it to use.

Kallu and his gullak theory!! Bhai tu purush nahi hai.. tu to...