While I hope and pray that the PM's exercise bears the much needed fruits, I agree with Shri Sarabjit that there is a process for remonetization, that is followed in developed countries. Sweden is currently under remonetization and have clearly spelled the schedule. You can send the bank the old money by post for exchange, which they do deducting some adminstrative expenses.
Counterfeit notes is a serious problem which the remonetization move in the country can solve, but I sure it will restart soon, if our new currency notes do not have adequate security built in, which, from what I read in the news, is the case. I would like to be assured that I am wrong on this.
Money earned for which tax has not been paid, also known as 'unaccounted money' is present in all economies, though the percent varies. In India, it is large because of our attitude to not pay taxes, and our traditional cash based economy. In this context, unaccounted money will resurface in a very short while.
The cash based economy has also exists because we don't like to pay our dues in time, persons who issue bouncing-cheques are not punished promptly. I doubt if this attitude will go with one remonetization! We may need regular demonetization. In that case currency with an expiry date may be a solution so that no one will hoard it. All this anxiety, long queues, man-hours lost .
Sent: Friday, November 25, 2016 11:25:57 AM
Subject: Re: [IAC#RG] Public Query on Demonetisation of Rs. 500 and Rs. 1000 OHD
Incidentally, we have about 2,000 CAs (also about 5,000 doctors, 3,000 engineers/scientists, 5,000 'faujis', 2,000 media persons) on this mailing list, so we very greatly value contributions of subject experts.
When IAC had approached RBI on 6.April 2015 (and even earlier also) requesting demonetisation of Rs. 500 notes and Rs. 1,000 notes of Mahatma Gandhi series, we did so because for FICN menace and for no other reason. We were promptly assured (repeatedly) by RBI that our demand was being seriously considered.
Thanks for your reply, I have not impugn your honesty/ integrity/ patriotism, however I admire you for your good work and salute you.
What forced me to write you that legally its correct and right that RBI has to pay to the bearer of the HDN, however if any person goes to RBI with 100 Cr, and ask for exchange or pay then also RBI will give, however he/ she has to give their identify / proof so that later various department can ask them, about how they received these currency, whether income tax was paid ? whether it was generated from illegal means etc... so its logic about it,
Yes, law is very much right that RBI has to pay, however I am not with you in this matter, whereby you wrote that you will not give your identify as it will motivate the people, who are having black money and they can move to the court, so I write you not to raise such issue
Thanks with Best Regards
CA Chitranjan Bharadia