The Rs.500 and Rs.1000 currency ban has become a talk of the town. Whether it’s offices or homes or dinner tables or hangouts with friends; everywhere people are just talking about this ban, what will happen next and are debating on this move of the Modi government. So in this article I’ll be throwing light on what will be the impact of this bold move in next 10 days.
What you might see in next 10 Days
Hue and Cry
For a next few days there will be a lot of hue and cry as suddenly the highest denomination currency has been scrapped which people possessed in huge quantity and have been using for almost all their transactions.
Due to minimal usage of digital payment methods both by the customers and vendors we might see a slowdown in businesses especially in entertainment or luxury sectors such as hotels, tourism, clothing, beauty etc. as majority of transactions in these industries were cash driven.
We have already started witnessing long queues outside the banks and ATM’s. Well, let me tell you friends that banks will accept the old currency notes till 30th December, 2016. Hence don’t bother yourself standing these queues as you have a lot of time to do that. But if you are depositing this money so that you can withdraw the new currency; then please note that you will be able to withdraw only Rs.10000 at a time in a week and maximum Rs.20000 in aggregate upto 24th November,2016.
Reduced Cash Flow in the Economy
For next few days we will see a cash crunch in the economy as people will not have enough money to make transactions and we might see extreme slowdown in transactions as well.
8th November, 2016 speech was a nightmare for people with a huge pile of unaccounted cash and they’ll be having a lot of sleepless nights ahead. Chances are they might reach out to people with low income groups and seek their help in depositing the cash in banks.
All the banks and ATM transactions are under strong surveillance of Income Tax Department and RBI officers. All high value transactions i.e. above Rs.2.5 lacs are being reported to Income Tax Departments on which immediate actions are being taken. For instance if the deposit is found to be unusual then be ready to welcome the IT officers at your homes and offices.
The above views are based on what’s happening around and are totally my views. No offense to anyone. But in the end I would urge all the readers to make the right move and not indulge in any activity that might land you in troubles. Stay tuned for my thoughts on impact in 10 months and 10 years. Will be sharing with you all soon.