The Questions surrounding why Rs. 500 and Rs. 1000 is banned by Government of India and How will Rs 500 and 1000 Banned will crub Black Money?
Black Money is circulated majorly using Rs. 500 and 1000 notes in the mess of people. So, the Government of India has been thinking about solving this issue since Indian Independence. But, there were no long term solutions. Hence, Reserve Bank of India (RBI) and Indian Government came up with a solution called NGT (Nano GPS Technology), a GPS tracking technique installed in newly released Rs. 2000 notes. This will help the financial regulator to find black money circulation and fund movement across the country and globe. So, as per the expectations, black money circulation would turn impossible. Also all old currencies like Rs, 500 and 1000, which in use will be scrapped and current black money holders cannot hold any of their old cash as it is unusable after December 10, 2016.
The old currencies of Rs 500 and 1000 has to be either destroyed by black money holders or had to be surrendered to the government of India or has to be converted into foreign currency through hawala, smuggling or other loop holes available as soon as possible to save the black money they hold.
How will Rs 500 and 1000 notes will curb fake Currency after it is banned?
Fake currency currently is circulation by fake currency rackets which cannot be surrendered at banks or banks would deny fake Rs 500 and Rs 1000 notes coming from the messes. Intelligence agencies like IB, RAW, Police and CBI would get a great chance to find fake currency rackets in bulk if there is any fake currency rackets circulation currently trying to be done on or before December 10th 2016. Apart from this, new notes that are to be released soon may not be duplicated so soon as they are released now. Since, the new currency has NGT in it. If, fake currencies are circulated, those currencies can be easily identified based on the location of fake note circulated in huge and the regular fake currency finding activity will be ongoing with these to curb fake currency.
All the banks in India are helping their customers to know the latest news and also the details about Rs. 500 ands Rs. 1000 old currency exchange.
The Power, Security, Performance and Reliability of NGT in the act of Banning Rs 500 and Rs 1000 Rupee
NGT is a new technology named as Nano GPS Technology. It helps the financial regulator of India and RBI to identify black money and fake currency circulation in market. Though NGT is a new technology, the performance, security and reliability of the Nano GPS Technology is a myth only understandable by top financial officials and the ministries in India including finance ministry, RBI officials, PM, PMO (Prime Minister’s Office), the President of India and finance secretaries and bureaucrats relating to the finance ministry. Apart from this concerns about whether people’s privacy would be affected by NGT (Nano GPS Technology) is another billion question. As the notes with NGT have just been started circulating, we may not know its correct situation currently pertaining to the matters of privacy and security of the individual holding the currency.
How long can we say that Black Money is Out of India after Rs. 500 and Rs. 1000 is Banned?
There is another billion and trillion dollar question to be considered as to how long this NGT currency curb black money and fake currency issues. This topic can be answered only after a few scandals hit the government and the media in the forthcoming days pertaining to fake currency and black money. Also, if there is any policy framework or law correction are going to be made to protect whistle blowers and there are any arbitrary powers to the RBI, CBI, IB, EB and other law enforcement agencies would receive (or) entertain to prevent black money circulation in India in the mere future.
How banning of Rupee 500 and 1000 is going to affect the economy and the Market?
Economical and market changes are going to be highly affected because of Rs. 500 and Rs. 1000 ban currently imposed. Though we see these measures are to remove black money from the society. We are not so much sure as to how is Rs 1000 and 500 is going to affect the Indian economy and the India’s business market. We can expect both merits and demerits from this measure, but the only point of question is whether, GOI is ready to stabilize the economy and the market. We can also expect the worst or the best to come out as a result of Rs 500 and 1000 Ban and the existing new currency circulation.