This will be big blow to Real Estate industry.

MUMBAI: 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.




Source:Currency notes issued before 2005 to be withdrawn post March 31: RBI - The Economic Times
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  • Ye Sahi hua. Raajan babu ki jay.


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  • Originally Posted by yogeshrajaji
    This will be big blow to Real Estate industry.

    MUMBAI: 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.




    Source:Currency notes issued before 2005 to be withdrawn post March 31: RBI - The Economic Times


    Exchanging more than Rs10,000 (ten thousand) requires to furnish PAN card. It means next 6 months black transaction will stop unless people find some loophole. :bab (59):
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  • Politician will be more worried :bab (59):
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  • good going!!!
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  • Imagine this - you do a property deal with 1 crore in black - now you not only have to count each of 10,000 notes of thousand - or 20,000 notes of 500 - you have to check every note for its validity ! Those cash counting machines used in transactions will no longer be enough

    I am laughing - those black money bags will go crazy pretty soon.

    I'm loving this - hats off to RR. The more I see, the cleverer he seems to be getting
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  • People have 3 months window to dump old notes at banks without giving identity. Why? People have six months of window to dump old notes in RE.
    It doesn't look like to curb black money but just to remove fake notes from circulation. Black money, people have been given enough window. Bank like HSBC, Citibank and other private bank will do exchange for big clients, politicians before July 31.

    People have not been asked for PAN. How tough it is to get a fake identity and residence proof for politicians?
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  • Originally Posted by Venkytalks
    Imagine this - you do a property deal with 1 crore in black - now you not only have to count each of 10,000 notes of thousand - or 20,000 notes of 500 - you have to check every note for its validity ! Those cash counting machines used in transactions will no longer be enough

    I am laughing - those black money bags will go crazy pretty soon.

    I'm loving this - hats off to RR. The more I see, the cleverer he seems to be getting
    __________________


    This has only increased manpower use to isolate these notes. These notes can be dumped easily at bank till jun 30.
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  • But if you receive 10,000 notes - wouldnt you need to check each to ensure that they are genuine?

    Or do black money bags dont care about it?
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  • wait....for draw backs...
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  • I think politicians are not going to suffer. Please remember elections are going to come. So politicians who have black money or big bags will spend these notes in public during election.
    Moral of the Story: So who will suffer end user/Public.. :bab (15):
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  • Originally Posted by Venkytalks
    But if you receive 10,000 notes - wouldnt you need to check each to ensure that they are genuine?

    Or do black money bags dont care about it?


    That is what I said it is just about man power (or to say hassle) to check notes is increased but that you have to do even today also as lot of fake notes are in circulation.
    Not much a difference.

    Many of these transaction either involve trust between parties or somebody with power who sort-out things when anything goes wrong.

    At worst what can happen you get some lacs in old notes which you can exchange from bank without giving any identity before Jun 30.
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  • Just read the fine-print of the news:
    Asking people not to panic and cooperate in the withdrawal process, the central bank said old notes would continue to be legal and could be exchanged at any bank after April 1. “…banks are required to exchange the notes for their customers as well as for non-customers. From July 01, 2014, however, to exchange more than 10 pieces of Rs. 500 and Rs. 1000 notes, non-customers will have to furnish proof of identity and residence to the bank branch in which they want to exchange the notes,” the advisory read.


    These notes can be exchanged from bank before Jun 30 as non-customer without giving any identity proof. 3 months window is enough to change black money to new currency notes.

    Why this 3 moth window?
    You can see why it doesn't matter. Sad but true.

    Whole exercise is to remove some fake notes from circulation as it was easy to fake those notes as they had less security features.
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  • Guys,

    Think about those builders who took black money from the investors or from end user.
    Is this three months is good time for those builders to convert their blank money to white money or Is it the bad time for those builders who have huge bags of black money.

    RBI strategy is to remove all the fake currency notes or duplicate notes from the economy or it is strategy to bring pressure on builders to bring down prices as RBI know that in real estate has more black money.
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  • Originally Posted by yogeshrajaji
    Guys,

    Think about those builders who took black money from the investors or from end user.
    Is this three months is good time for those builders to convert their blank money to white money or Is it the bad time for those builders who have huge bags of black money.

    RBI strategy is to remove all the fake currency notes or duplicate notes from the economy or it is strategy to bring pressure on builders to bring down prices as RBI know that in real estate has more black money.


    most of builders are not cash rich and on lot of mortgage. most of cash generated is spent very soon ( for bribes, promoter's payment/expenses, land etc.).
    Even if they have cash, private banks, corrupt bank officials will help them. Do you think they will stand in queues to exchange notes?

    One more thing RBI is taking out these notes from circulation (through banks) from long time. Most notes are now with hoarders and not in market circulation. Have anybody checked how many such notes he has.
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  • Order on notes not an attempt at demonetisation: Raghuram Rajan

    NEW DELHI: Reserve Bank Governor Raghuram Rajan today said the order withdrawing all currency notes printed before 2005 was not an attempt at demonetisation or had anything to do with the general elections.

    He also made it clear that the pre-2005 notes will continue to be legal tender.

    "This is not an attempt to demonetise. It is an attempt to replace less effective notes with more effective notes. I understand people are making a different interpretations. Unfortunately that should not be the interpretation," he said.

    Rajan was answering a question on the RBI's last night decision to withdraw all currency notes printed before 2005, after he delivered the 8th R N Kao Memorial Lecture here.

    CBI Director Ranjit Sinha had asked him about the significance of the decision coming before the general elections.

    "I have to say that it (withdrawal of notes) has nothing to do with elections which certainly is not the objective," Rajan said.

    He said there has been a long standing demand that these notes have unfortunately become less secure. The notes after 2005 have greater security features and the Finance Ministry sought withdrawal of the pre-2005 notes.

    RBI had yesterday said that after March 31, 2014, it 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.



    RBI Governor Raghuram Rajan was answering a question on the RBI's last night decision to withdraw all currency notes printed before 2005.

    Source:Order on notes not an attempt at demonetisation: Raghuram Rajan - The Economic Times
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