it is a step against corruption
And, government surveillance for online transactions should be similar what is being done in western countries ;)
2: Try getting that ₹2000 changed with any shop on street.
3. I have yet to see any of the ₹500 in any ATM in Bangalore, it still not well circulated
4. If anyone thinks ppl keep bulk of their ill gotten wealth in cash they are idiots, sure this affect few % of the wealth of rich corrupt people that was in cash, however it impacts the poor 100x more. I can't pay my maid's salary because I don't have the any kind of notes, while I can manage fine using cards, she doesn't even have a bank account, remember > 50% of India is not banked.
You are partially correct but govt has to start from somewhere. As you know they are also going to attack "Benami" property.
http://indianexpress.com/article/india/india-news-india/blac...
http://timesofindia.indiatimes.com/city/meerut/Sedan-caught-...
http://economictimes.indiatimes.com/wealth/whip-cracked-on-b...
> it impacts the poor 100x more
I will not consider anyone poor if he spends more than Rs. 500 per day. This figure is correct on weekly basis. Rs. 500 per week. Poor people earn at most Rs. 250 per day. keep that in mind. Having a fixed deposit of bank account is better for them anyway, because they don't have to worry about income tax dept asking for tax from them. I know they aren't educated enough to do the paper work. But trust in Banks is good thing because it will cut down middle man and they will directy get benefite from the schemees which means less scams irrespective of who is in govt.
Street vendors see Rs 500/1000 note once in a while.
Plus, Average Indian Spends $1.8 Every Day.
https://en.wikipedia.org/wiki/Poverty_in_India
https://www.saddahaq.com/average-indian-spends-18-every-day-...
http://www.hindustantimes.com/india/family-day-how-indian-fa...
http://timesofindia.indiatimes.com/india/Spend-Rs-32-a-day-G...
You should also understand that opposition is trying to create panic, so people protest againt current govt.
> she doesn't even have a bank account
Help her create a bank account + tempt her with interest she will be getting + there is no risk of anyone robbing her savings
Yes!, that's why they shouldn't be focusing in disturbing people's lives and increasing banks and government power and surveillance!
As it turns out, they are replacing those denominations with equal or higher currency values.
By people dealing in cash to avoid paying tax.
Is it good for them tomorrow, likely not but what about six months from now? you get side benefit of being able to track transactions and tax avoidance.
A lot of good people would consider that to be the opposite of a benefit.
The whole thing seems like a clear win to me.
Hold on, let me spend time walking 10 miles to a bank and sign up for electronic payments instead of tending my field and barely making enough to survive on. Yeah, while this is great for India's banking industry to get some growth, I hardly see the benefit for the significant rural population that does not have easy access to a bank nor any of the supporting infrastructure that is required to support electronic payments.