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SarahBell

India currency thing - about hidden money

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http://www.bbc.co.uk/news/world-asia-india-37974423

 

The size of this shadow economy is reckoned to be as much as 20% of India's entire GDP.

Mr Modi's demonetisation is designed to drive black money out of the shadows.

At the moment you can exchange up to 4,500 (£48) of the old rupees in cash for new 500 (£6) and 2,000 (£24) rupee notes.

There is no limit to the amount that can be deposited in bank accounts until the end of December, but the government has warned that the tax authorities will be investigating any deposits above 250,000 rupees (£2,962).

 

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11 minutes ago, fru-gal said:

This is why Bitcoin is the future...

Yes the PTB would stamp out Bitcoin type stuff in a heartbeat if they didn't like it. Bitcoin will be used to get us to accept what comes later ie no cash.

I guess they should have put money in PM's instead. Actually I think Indian gold confiscation act is coming in the future?

 

 

 

 

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7 hours ago, SarahBell said:

http://www.bbc.co.uk/news/world-asia-india-37974423

 

The size of this shadow economy is reckoned to be as much as 20% of India's entire GDP.

Mr Modi's demonetisation is designed to drive black money out of the shadows.

At the moment you can exchange up to 4,500 (£48) of the old rupees in cash for new 500 (£6) and 2,000 (£24) rupee notes.

There is no limit to the amount that can be deposited in bank accounts until the end of December, but the government has warned that the tax authorities will be investigating any deposits above 250,000 rupees (£2,962).

 

I feel that is underestimated....20% is probably an underestimate even in in this country....who are these people with their ignorance...?...were the BBC not placing staff on questionable contracts to avoid tax recently.....BBC ...jokers supreme..don't get it ...only losers were us the taxpayers.......:rolleyes:

Edited by South Lorne

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On 17/11/2016 at 5:51 PM, SarahBell said:

http://www.bbc.co.uk/news/world-asia-india-37974423

 

The size of this shadow economy is reckoned to be as much as 20% of India's entire GDP.

Mr Modi's demonetisation is designed to drive black money out of the shadows.

At the moment you can exchange up to 4,500 (£48) of the old rupees in cash for new 500 (£6) and 2,000 (£24) rupee notes.

There is no limit to the amount that can be deposited in bank accounts until the end of December, but the government has warned that the tax authorities will be investigating any deposits above 250,000 rupees (£2,962).

 

People are buying gold. Price was over $3000 an ounce a few days ago.

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1 hour ago, Saving For a Space Ship said:

I read the article with interest until the last few lines when he talks about gold. The cynic in me thinks he has vested interest in gold.

 

 

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I was in Nepal at the end of Nov, and it was big news there as well. Their currency is pegged to the indian rupee. Lots of Nepalese migrant workers left holding now invalid 500 & 1000 rupee notes.

The counterfeiting of Indian and Nepalese currency is widely reckoned to be rampant though. And I didn't use a single metal coin in over 3 weeks of being there - even down to 5 rupee is issued as notes (worth about ~3.5p).

If they loved gold before, they are fanatical about it now!

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On 17/11/2016 at 8:40 PM, interestrateripoff said:

How do the poor access the banking system?

They can't, but do the influential and powerful who are forcing changes care about that? ;)

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On 17/11/2016 at 10:33 PM, Errol said:

Gold demand gone crazy as well. Price over $2000+ equivalent in India.

So how do the people holding real gold spend it?.....do they shave a few grams off to buy their weekly shop until it is gone? are they getting paid gold in their wage packets?......like anything it all eventually ends up in a few hands, so the few who end up holding it end up trading amongst themselves......that is no help to the majority who hold no gold and never have, so will end up trading/bartering/swapping with what they do have to offer that others need. ;)

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9 minutes ago, Errol said:

All levels of society in India hold gold. And yes, they do trade gold for services/goods.

Yes we know that, but only the relatively few hold any of  it....so they trade at the top, they hoard it in places like 'safe' deposit boxes and use it for dowries, on special occasions such as weddings and as future security when money does not work for them......;)

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