Rs 1000 and Rs 500 notes cease to be legal tender

[fiby41]

Rs 1000 and Rs 500 notes cease tobbe legal tender.

Gold up, Sensex down.

[Solvent]

Some commentary.

So, as I understand it, the notes are freely convertible to new notes that are being introduced. Doesn't seem like a big deal?
Unless you're holding a massive stash of notes for some reason. Now, I'm sure if you are that's a bit inconvenient. And there are probably good reasons for some people to hold large amounts of currency. But there might be more people who are trying to stay in a cash-only economy for not-particularly-good reasons.

[fiby41]

Yes, this is another step towards a cash less economy which the Fin Min hinted at.

First was the Jan Dhan Yojana which was first undertaking of the govt as soon as it was formed in 2014. This scheme made it to the Guinness World Records for starting new bank accounts of 11.5 crore (115 million) people in 5 months.

Then there was the option to launder your black money at 45% tax rate. if you declared it.

Then a convertible to cash gold saving certificate scheme was launched.

And finally this.

[fiby41]

Long lines of depositors outside every bank branch that I saw on my way to college. And the bank's weren't even open at that time.

The queues grew only bigger on my way back.

[JamesR]

Progress!