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India Tightens Cash Deposit Rules

By smaulgld   2016 Dec 19, 6:34am   ↑ like (2)   ↓ dislike   244 views   7 comments   watch (0)   share   quote  

First they limited the amount of cash you could exchange , now the amount of cash you can put in the bank
http://in.reuters.com/article/india-modi-corruption-deposit-idINKBN1480Q8

Comments 1-7 of 7     Last »

1   Macropodia   2016 Dec 19, 6:54am  ↑ like (1)   ↓ dislike   quote  

Link is uninterpretable unless we first know the dot to rupee exchange rate...

2   Strategist   2016 Dec 19, 7:38am  ↑ like   ↓ dislike (1)   quote  

smaulgld says

First they limited the amount of cash you could exchange , now the amount of cash you can put in the bank

They are limiting the amount of old notes you can put in the bank, not the new notes. It screws the underground economy that was hoarding up with cash all these years.
Why is that bad?

3   MMR   2016 Dec 19, 9:48am  ↑ like   ↓ dislike   quote  

Strategist says

ars.

Why is that bad?

In long run it is a tough choice which will lead to better and more efficient taxation.

However, you don't see small time vendors in India handling transactions with and iPad and square, so many people who aren't doing anything wrong are being punished by policy

4   indc   2016 Dec 19, 3:56pm  ↑ like (1)   ↓ dislike   quote  

Try this from an Indian economist who understands Indian system. I think India should print lower denomination notes in future which are mostly used by small time vendors.

Who needs 500 and 1000 Rs notes. He says India will remove 2000Rs notes in future.

5   Quigley   Jan 3, 2:13pm  ↑ like   ↓ dislike   quote  

http://yournewswire.com/washington-cash-ban-india/

In early November, without any warning, the Indian government banned two of the largest denomination bills at Washington’s request.

Looks like Washington and the Obama administration were behind the India cash grab. Apparently, India was to serve as a test case for a rapid advance to cashless society.
The USAID office made all the negotiations. I'm sure many Indian diplomats were paid off in return for this little experiment.
Once again, Obama shows his true nature: elitist globalist in thrall to high financiers.

6   Patrick   Jan 3, 6:53pm  ↑ like (1)   ↓ dislike   quote  

MMR says

In long run it is a tough choice which will lead to better and more efficient taxation.

It's not as good as the best choice: taxing land values

Land cannot be hidden.
Land records are public.
Mere ownership of land is not productive in any way.

Taxing work discourages work, which is bad.
Taxing sales discourages commerce, which is bad.

The key is that the land value tax must not rise if the owner improves the land, say by building on it.

7   MMR   Jan 3, 8:53pm  ↑ like (1)   ↓ dislike   quote  

Patrick says

Land cannot be hidden.

Land records are public.

Mere ownership of land is not productive in any way.

Land records are routinely manipulated. Making claims on fraudulent land records is a cottage industry. Courts there move very slowly. I've been fighting a case for 11 years based on such chicanery

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