It is estimated that normalcy may not be restored until March 2017.

http://www.indiatimes.com/news/india/demonetisation-took-out-currency-worth-rs-14-lakh-crore-in-value-new-notes-in-circulation-worth-only-rs-1-5-lakh-crore-266271.html

New black money is now getting generated in existing/new notes since demonetization does not really address the source of corruption and tax evasion.

Since the government knows that the process is going to take months, now they are now talking about cashless transactions, payment through mobile apps and such. There are a lot of unorganized businesses running in India, which are cash based and your daily life depends on them like milk man, vegetable vendor, dhabas, transportation like rikshaw/autorickshaw, etc. It will be hard to convince them to adopt to digital payments.

Also there is entire agricultural sector which is predominantly cash based. Transport industry is also mostly cash based.

Rs. 2000 notes seems to have been printed because of the cash crunch since printing new Rs. 500 to replace existing currency would have taken way too long. Even with Rs. 2000 notes, banks are unable to meet the Rs. 24,000 withdrawal limit of savings account and Rs. 50,000 limit for current account a week. After things settle down, they will have to demonetize or replace the Rs. 2000 notes with lower denominations as well.

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Give free food http://www.thehungersite.com ||

see this article:

How Modi’s currency ban is helping Chinese fintech investors in India

By Indrajit Basu
26 Nov 2016


Chinese e-payment players could be the biggest beneficiaries of New Delhi’s sudden move to ban high denomination banknotes as harried Indians desperately seek cashless options.

Alibaba is already the biggest backer of two of the top e-wallets, Paytm and Snapdeal-owned Freecharge, while the other two biggest players, MobiKwik and Oxigen, claim they are on the verge of landing Chinese investment as well.

According to a chief executive of an Indian e-wallet player currently “in negotiations” with Chinese investors who was reluctant to be identified, the currency ban has opened up huge opportunities for e-wallets and almost every other player is wooing investors, especially from China.

In the world’s most sweeping currency policy change in decades, Prime Minister Narendra Modi on November 8 announced all 500 and 1000 rupee notes would be taken out of circulation, sending hundreds of thousands of Indians queuing up at banks to deposit idle cash or replace them with new notes.

Since the move invalidated 86 per cent of the total currency in circulation, an unprecedented cash crunch has ensued, prompting more and more Indians to seek succour in e-wallets.

Paytm, thought to be the market leader in India, says its new users have grown over 1,000 per cent since the announcement, with the company clocking up over 7 million transactions worth Rs1.2 billion (US$17.5 million) a day. Others say their turnover has similarly spiked in past weeks.

Alibaba, which also owns the South China Morning Post, has identified e-wallet as an important strategic segment in India and is the largest shareholder in One97 Communications, the holding company of Paytm, with investments amounting to US$680 million – about 40 per cent stake.

Why Modi’s Indian banknote bombshell has shades of North Korea’s currency disaster

“Demonitsation has forced Indians to use and adopt digital money as an alternative to cash,” said Bipin Preet Singh, founder-CEO and director of MobiKwik, an e-wallet firm that has reported a “7,000 per cent increase in bank transfers”since the announcement. Mobikwik is backed by Hong Kong and Taiwan-based investors and is currently in talks with mainland Chinese investors.





full article at:

http://www.scmp.com/week-asia/business/article/2049322/how-modis-currency-ban-helping-chinese-fintech-investors-india

Quote:

---

Originally posted by rajcanada

It is estimated that normalcy may not be restored until March 2017.

http://www.indiatimes.com/news/india/demonetisation-took-out-currency-worth-rs-14-lakh-crore-in-value-new-notes-in-circulation-worth-only-rs-1-5-lakh-crore-266271.html

New black money is now getting generated in existing/new notes since demonetization does not really address the source of corruption and tax evasion.

Since the government knows that the process is going to take months, now they are now talking about cashless transactions, payment through mobile apps and such. There are a lot of unorganized businesses running in India, which are cash based and your daily life depends on them like milk man, vegetable vendor, dhabas, transportation like rikshaw/autorickshaw, etc. It will be hard to convince them to adopt to digital payments.

Also there is entire agricultural sector which is predominantly cash based. Transport industry is also mostly cash based.

Rs. 2000 notes seems to have been printed because of the cash crunch since printing new Rs. 500 to replace existing currency would have taken way too long. Even with Rs. 2000 notes, banks are unable to meet the Rs. 24,000 withdrawal limit of savings account and Rs. 50,000 limit for current account a week. After things settle down, they will have to demonetize or replace the Rs. 2000 notes with lower denominations as well.

---

Has Indian govt offered any help to NRIs to exchange old currency?
Anything at all?

On the 8th of November 2016 Government of India demonetized high value currency notes of Rs. 500/- and Rs. 1000/- (Specified Cash Currency) with an intention of curbing fake currency which were used for anti-national and illegal activities by terrorists and also to curb hoarding of black money for illegal activities. This demonetization of Indian currency notes will surely have repercussions not only for Indians residing in India but it will also pinch a few Indians residing abroad and hold a few rupees on them.

It is quite normal for NRIs to leave India with a few 1,000/- and 500/- unspent Indian Rupee specified currency notes after a tiring spree of shopping and left with a small change in their pockets or purses, which they surely can use whenever they return back for a visit.

A lot of us do carry a few specified cash currencies in the following denominations of Rs. 500/- and Rs. 1000/- being withdrawn from Banks for a celebration, or distributions for marriages, etc. and not having deposited in the Bank for lack of time and carried it as an NRI to overseas locations..

THIS specified cash currency notes of Rs. 500/- and Rs. 1000/- should not cause a great worry as the Indian Government and Reserve Bank of India (RBI) have addressed such issues allowing NRIs to freely deposit any amount of legitimate holdings of Rs. 500/- and Rs. 1,000/- of these specified currency notes in their Non Resident Ordinary (NRO) account.

Although the Government has not defined what a legitimate balance IS, the same will include balances of or out of the withdrawals of Currency notes taken out from a Bank account during visits to India. Currency notes of large denominations, withdrawn by Power of Attorney Holder to meet domestic expenses and disbursements, with ID and the proof there of.. and also a gift received during visit to India from close relatives e.g. Diwali Gifts to children by Uncles and Aunts, etc., plus currency notes received from the sale of miscellaneous assets such as second hand electronics, such as TV's, fixtures, used motor car, etc. Also the currency notes received on sale of foreign currency to a Bank or Authorized Money Changer etc in their travels.

The Reserve Bank of India has clarified that an NRIs can deposit currency notes in NRO accounts and the Finance Ministry has also clarified that cash currency deposit to the extent of Rs.2,50,000/- by Housewives and others with joint accounts will not be reported to Tax Authorities. This should not be taken casually and even for deposit of amount below Rs.2,50,000/- supporting evidences should be shown or retained for withdrawal will be called for if and when necessary.

If one does not have such evidence that is called for for verification, you can request the Bank for certificate of withdrawal at a later date . The withdrawal will be reflected in the Bank's passbook or statements or records of transactions maintained. Please do remember the date and the sum.

If possible, the NRI himself should visit India and deposit the cash currency in his NRO account. Lot of us who live far away locations do not have the convenience to travel and so can authorize any person to deposit such currency in his NRO account, with the available proof. An Authority Letter in original should ideally be notarized or should be signed in presence of Overseas Banker/Notary who should affix with a seal.

This specified cash currency is stored in India, then, the NRI's problem can be solved by visiting India within the allotted time or alternately authorizing an Indian Resident to the deposit. If the specified cash currency is overseas then, bringing the same into India can create entry problems. The Law of Foreign Exchange Management Act, of 1999 (FEMA) and the Indian Customs provide a limit of carrying of Indian currencies outside India up to Rs. 25,000/- only, for a resident of India. So bear that in mind it is per person. Therefore traveling by an NRI himself for depositing an amount of Rs. 25,000/- or less will be a very costly travel and may not cover the cost of travel which will be much more than such a balance. On the other hand presently there are no specific provisions for import of currency into India by an Ordinary Indian i.e. a person other than NRI.

with large balances and sums of THIS specified cash currency abroad is going to be a challenge for quite few NRIs who needs answers to their problems needs to be addressed and the Government of India should allow an Authorized Representative who are into specific businesses, to travel with an NRI's, and with these specified cash currency for depositing into NRO account, as soon as they can.

The Reserve Bank of India has clarified this issue, if one cannot deposit the currency before 31st December 2016 will be given an opportunity to deposit and exchange the same at Reserve Bank of India's Offices up till such a time, as will be notified by Reserve Bank of India from time to time.

https://www.rbi.org.in/Scripts/FAQView.aspx?Id=119

Copied and pasted from various Government sites and modified to suit Canadian Desi website and posted for our guidance.

Hope this helps.

FH.


---

Quote:

---

Originally posted by Chamgadad

Has Indian govt offered any help to NRIs to exchange old currency?
Anything at all?

---

I understand that few of NRI's may be having few thousands of rupees in the demonetized currency notes which they cannot exchange to the new currency. They may be feeling upset because Indian Govt. is not able to provide them any easy means for conversion. I can feel their pain but at the same time, if they think about millions of those who live in rural areas, are illiterate, have no easy access to the bank, saved few thousands of rupees for rainy days and now they have lost their life time saving. So, just think about those people and your pain will disappear. Take it as collateral damage and suck it up.

Another thought – when the Pradhan Sewak is encouraging the country to move towards cashless transactions (which I personally think is the best approach and a must for development), I expect he will also encourage all political parties to follow the same advice. All political parties should also pledge to take all donations electronically and abolish the cash component altogether.

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A Delhite in Toronto

That is the agenda of the global elite.

see some points as noted here:

http://canadiandesi.com/read.php?TID=37158&page=5

Once they have digital money, next step is negative interest rates. Where savers have to pay banks to stash money. After QE failed, they will move to negative interest rates. All this will they hold countless summits (remember the fake lakes created by Harper in G20 or how Trudeau spends $1300+ on meals).

We work. They enjoy.


The key thing here is money is a store of value. With negative interest rates (digital money), the elite (and central banks) want to destroy this.

Quote:

---

Originally posted by Delhite

I understand that few of NRI's may be having few thousands of rupees in the demonetized currency notes which they cannot exchange to the new currency. They may be feeling upset because Indian Govt. is not able to provide them any easy means for conversion. I can feel their pain but at the same time, if they think about millions of those who live in rural areas, are illiterate, have no easy access to the bank, saved few thousands of rupees for rainy days and now they have lost their life time saving. So, just think about those people and your pain will disappear. Take it as collateral damage and suck it up.

Another thought – when the Pradhan Sewak is encouraging the country to move towards cashless transactions (which I personally think is the best approach and a must for development), I expect he will also encourage all political parties to follow the same advice. All political parties should also pledge to take all donations electronically and abolish the cash component altogether.

---

AMNESTY or Are they providing a way out to all the Indians?

Demonetisation: Income-Tax Amendment Bill tabled in LS. Lok Sabha.

Proposes 30% tax, 10% penalty, 33% surcharge on undisclosed income, for late comers.

NEW DELHI, NOV 28:
The Modi-led Government on Monday sought to bring to tax all unaccounted money that was flowing into the banking system following the demonetization announcement on November 8.

Finance Minister Arun Jaitley introduced a Bill in Lok Sabha for this purpose.

The Centre has now come out with Pradhan Mantri Garib Kalyan Yojana 2016 to enable people with undisclosed income to come clean.

However, they would have to fork out a tax of 30 per cent and penalty of 10 per cent. A surcharge in the form of cess of 33 per cent will have to be paid on the tax.

In addition to tax, surcharge and penalty, the declarant will have to deposit 25 per cent of undisclosed income in a deposit scheme to be notified by the Centre in consultation with the RBI.

This amount is proposed to be utilised for programmes of irrigation, housing, toilets, infrastructure, primary education, primary health, livelihood etc, so that there is justice and equality.

A 75 per cent tax and 10 per cent penalty in case Income Tax authorities detect undisclosed wealth deposited post demonetization.

The current provisions of penalty on under-reporting of income at 50 per cent of the tax, and misreporting (200 per cent of tax) will remain and no changes are being made to them.

Under-reporting/misreporting income is normally difference between returned income and assessed income.

The Taxation Laws (Second Amendment) Bill, 2016 proposes to amend Section 115BBE of the Income Tax Act to provide for a punitive tax, surcharge and penalty on unexplained credit, investment, cash and other assets.

The Hindu. : Hope the website works.

thehindubusinessline.com/economy/policy/demonetisation-jaitley-introduces-bill-to-tax-unaccounted-money-flowing-into-banking-system/article9394332.ece

EDIT.: http://www.thehindubusinessline.com/economy/policy/demonetisation-jaitley-introduces-bill-to-tax-unaccounted-money-flowing-into-banking-system/article9394332.ece


Good to know.

Hope this helps a few rich people.

FH.