Concepts and Ideas

Why Not Ban all Denominations Above 500 Rupees?

While I welcome the ban on the existing Rs. 500 & Rs. 1000 rupee notes by the Govt of India as I think this move will bring accountability to cash transactions in the future, I am not sure why NEW Rs. 2000 notes are needed?

Chandrababu Naidu is right. We need to rethink if higher denomination currencies are needed.

A new Rs. 2000 currency note will make it easier for people who want to indulge in corruption and black money hoarding. No?

Why not abolish 1000 and 2000 rupee denominations altogether?

BTW, here is the RBI’s Frequently Asked Questions (and Answers) on depositing/exchanging your old currency notes. And here is a useful graphic that explains it in short.

 

 

Destination Infinity

BTW, there is a rumour going around that the new Rs. 2000 notes will have nano-GPS tracking enabled. Interesting rumour, don’t you think?

And I am not sure how they are going to manage the operational hassles of such a large project, esp. given the inefficiencies of our system.

What do you all think about this bold move?

14 Comments

  • Jeevan

    Indeed great move and sure to block lot of black money. But releasing 2000 notes will only worse in future and could be double the amount of hoarding

    • Rajesh K

      Exactly. That’s why I am sceptical about how black money is going to be perturbed in the future with such a large denomination as 2000 rupees!

      Destination Infinity

  • SG

    In my view, all transactions above Rs.10,000 should be either by check or credit/debit cards. Some people may ask “what about poor people”. In India, poor people are so poor they do not buy stuff worth more than Rs.10,000 frequently.

  • Sandhya Kumar

    Just 500 Rupee notes are enough. 2000 will help people to hoard notes again.

    But now, my maid is finding it very difficult to change her notes, she got as salary for buying ration. I had to give her change which is difficult for me too with so much crowd in the banks.

    • Rajesh K

      Fortunately, I got some hundred and two thousand rupee notes yesterday. That solves the problem temporarily. I wonder when the ATMs will start giving new 500 rupee notes freely and why it is not already doing so. Yes, the 2000 rupee notes should have not been introduced if they want to curtail black money is what I feel.

      Destination Infinity

  • Manogna

    Even I have Indian currency with me which I saved for spending when I return to India. Now I will have to exchange it or send it to India through some friend.

    The new Indian 2000 rupee note looks a lot like Australian 5 Dollar note to me,which is the same colour and is made of plastic and doesn’t crease easily.

    Releasing a higher denomination looks like a bad move, but the officials must have thought it out before releasing it. I hope RBI officials must have discussed it with Modi. Lets hope everything works out well.
    😀

    • Rajesh K

      I guess it will be difficult for many Indians living abroad to exchange or even deposit their currencies. Wonder if the authorities thought through this before deciding to implement such a large scheme.

      Destination Infinity

  • Avada Kedavra

    If we just had 500 Rupee notes, imagine how many notes must be printed. And also the cost involved in printing so many bills. I think there is nothing wrong with having 2000 rupee notes. It will make transactions easier.