The Indian money crunch.
Nov 27th, 2016, 09:14 AM
#1
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The Indian money crunch.
As many of you know know the govt. of India abruptly decided to phase out 500 and 1000 rupee notes so now the people have to exchange them for new 500 and 2000 rupee notes. The whole idea is to flush out bribe or as its called "black" money. India is a cash economy and many people have black money that is hidden away and of course it hasn't been taxed. You can exchange only so much before the rest is taxed.
The problem is the extremely poor planning by the Modi govt. They simply failed to print enough new notes and to reconfigure ATM's to accommodate them as the 2000 rupee notes are larger. This has resulted in long lines at banks and ATM's and frequently they have run out of new notes to exchange. Frankly its a mess.
Now let me say how this has effected my in-laws there. They are running out of money and don't forget few there use credit cards as if there is fraud committed on them its the problem for the owner. He is stuck with the bill. My BIL gets money from us every month so basically he can survive and its sent to a bank by me. The problem is they don't have enough new notes so he can't get money, yes money needed to buy basic necessities. My SIL is ill with a terrible virus that can linger for months causing joint pain, swelling and high fevers and if she needs hospitalization she does not have enough to go in as cash is required first there. She is down to 10k rupees and folks that isn't much, about $153.00 USD. I read about a story where a woman's young child died because she had the old notes and the hospital refused admission. Again this is a cash based economy. So the govt. institutes a new policy to flush out black money but does not think to have enough new notes in place.
People there are in a crisis and all because of extremely poor planning by the govt. Its like sending an army to fight in January in Siberia and not equipping them with winter clothing.
I write this to try to inform of how this is effecting day to day life, to decry the govt. for such poor planning which to me should result in bringing in a new govt. for groom incompetence and to deny (I take a deep sigh as I say this).
Thank you.
The problem is the extremely poor planning by the Modi govt. They simply failed to print enough new notes and to reconfigure ATM's to accommodate them as the 2000 rupee notes are larger. This has resulted in long lines at banks and ATM's and frequently they have run out of new notes to exchange. Frankly its a mess.
Now let me say how this has effected my in-laws there. They are running out of money and don't forget few there use credit cards as if there is fraud committed on them its the problem for the owner. He is stuck with the bill. My BIL gets money from us every month so basically he can survive and its sent to a bank by me. The problem is they don't have enough new notes so he can't get money, yes money needed to buy basic necessities. My SIL is ill with a terrible virus that can linger for months causing joint pain, swelling and high fevers and if she needs hospitalization she does not have enough to go in as cash is required first there. She is down to 10k rupees and folks that isn't much, about $153.00 USD. I read about a story where a woman's young child died because she had the old notes and the hospital refused admission. Again this is a cash based economy. So the govt. institutes a new policy to flush out black money but does not think to have enough new notes in place.
People there are in a crisis and all because of extremely poor planning by the govt. Its like sending an army to fight in January in Siberia and not equipping them with winter clothing.
I write this to try to inform of how this is effecting day to day life, to decry the govt. for such poor planning which to me should result in bringing in a new govt. for groom incompetence and to deny (I take a deep sigh as I say this).
Thank you.
Nov 27th, 2016, 09:51 AM
#3
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I arrive in New Delhi on Thursday night. Hotel wifi willing I will post my experience getting cash at the airport. My understanding is that holders of foreign passports can exchange foreign currency for up to Rs 5000 once per week with a note made in the passport to keep track. The ATM limit is Rs 2000 or Rs 2500 (have seen both).
Nov 27th, 2016, 10:11 AM
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My SIL who is ill with this disease you get from mosquitos:
https://en.wikipedia.org/wiki/Chikungunya
was standing in lie for money at her local bank in Ajmer for so long she nearly fainted and by the time her turn was up there was no money.
Again to run out of new notes in a country where 99% of transactions are in cash is unthinkable. I'll the places where money is printed is not working 24/7 either.
Meant to say "gross" incompetence.
https://en.wikipedia.org/wiki/Chikungunya
was standing in lie for money at her local bank in Ajmer for so long she nearly fainted and by the time her turn was up there was no money.
Again to run out of new notes in a country where 99% of transactions are in cash is unthinkable. I'll the places where money is printed is not working 24/7 either.
Meant to say "gross" incompetence.
Nov 27th, 2016, 10:13 AM
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I am so very glad that this did not happen during my stay in India about 8 weeks ago earlier this this year. Sounds really chaotic and worrying for residents and tourists alike. I am very concerned about tour guides and drivers who may loose income when currency/notes are not available or exchangeable. For many living on the edge a longer term solution is not going to work.
Nov 27th, 2016, 10:38 AM
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Friends of ours just got back yesterday I think. I know they had a hard time while they were there but not sure how bad it was for them.
I heard on BBC radio today that the PM Modi said Indians need to switch to electronic money transactions. I have no idea how they will implement that. Most people don't want that, will continue to hide money when this crisis is over and don't trust the banking system there to begin with. Neither do I. I had a terrible, awful time with one of the supposed best banks in India, ICICI. I sent money every month to them from my Chase acct. to be couriered to my BIL. One month they failed to do this and I went thru hell with them. The CS was awful and all they ever wanted to do was do nothing for me and have me jump thru more and more hoops for them. Despite numerous calls and emails the money was never recovered to me or sent to him. Thank God Chase listened and refunded me the money due to fraudulent practices by ICICI and all it took was one call and five minutes. Go to the ICICI fb page and you will some many complaints from customers about money lost.
I heard on BBC radio today that the PM Modi said Indians need to switch to electronic money transactions. I have no idea how they will implement that. Most people don't want that, will continue to hide money when this crisis is over and don't trust the banking system there to begin with. Neither do I. I had a terrible, awful time with one of the supposed best banks in India, ICICI. I sent money every month to them from my Chase acct. to be couriered to my BIL. One month they failed to do this and I went thru hell with them. The CS was awful and all they ever wanted to do was do nothing for me and have me jump thru more and more hoops for them. Despite numerous calls and emails the money was never recovered to me or sent to him. Thank God Chase listened and refunded me the money due to fraudulent practices by ICICI and all it took was one call and five minutes. Go to the ICICI fb page and you will some many complaints from customers about money lost.
Nov 27th, 2016, 01:33 PM
#8
so sorry that your family is so affected by this decision, jacket watch. I knew something of it from the cricket commentaries on the current India v England series but of course it doesn't affect the players and commentators in anything like the way you describe.
it sounds like a terribly planned decision with little care given to the effect on ordinary people.
it sounds like a terribly planned decision with little care given to the effect on ordinary people.
Nov 28th, 2016, 04:44 AM
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Thank you. I spoke with friends last night who Indian and they said family there notes things are improving. However yes it was poorly planned. Withdrawals from ATM's were limited to 4000 rupees per week. Not much and again some ATM's were not configured for the new, larger 2000 note or simply ran out.
The purpose is to flush out black money, get much needed taxes and stop the cash economy. BBC radio reported Modi wants to shift India to a more modern electronic money system. What a task that will be!
Some travelers love touring India and so be it but do be aware corruption there is massive. I could write volumes on how many times I've been faced with cheating there and thru on line Indian businesses and even their huge bank ICICI. A friend of ours here bought a condo in Delhi. What a nightmare! He faced massive delays, increased costs, tons of red tape and they even sent him a letter saying if he did not come to Delhi for a final closing w/I a week he would forfeit the property!
I'll just say one more thing. My niece there tried to get a passport for a year. No go. Her uncle in DC wanted to bring her here for a visit and was able to be sure she could get a visa from his contacts in DC. He bought the tickets so now she needs the passport. She had to pay a 10000 rupee "fee" to expedite this process on going for a year already!
The purpose is to flush out black money, get much needed taxes and stop the cash economy. BBC radio reported Modi wants to shift India to a more modern electronic money system. What a task that will be!
Some travelers love touring India and so be it but do be aware corruption there is massive. I could write volumes on how many times I've been faced with cheating there and thru on line Indian businesses and even their huge bank ICICI. A friend of ours here bought a condo in Delhi. What a nightmare! He faced massive delays, increased costs, tons of red tape and they even sent him a letter saying if he did not come to Delhi for a final closing w/I a week he would forfeit the property!
I'll just say one more thing. My niece there tried to get a passport for a year. No go. Her uncle in DC wanted to bring her here for a visit and was able to be sure she could get a visa from his contacts in DC. He bought the tickets so now she needs the passport. She had to pay a 10000 rupee "fee" to expedite this process on going for a year already!
Nov 28th, 2016, 07:10 PM
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this article summarizes the chaos--which changes in nature from hour to hour apparently:
http://www.nzherald.co.nz/business/n...ectid=11755540
http://www.nzherald.co.nz/business/n...ectid=11755540
Nov 28th, 2016, 11:13 PM
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Sorry to interrupt you, but I want to correct you here about few facts. Of course Indian Govt. took a very brave step to end corruption. Indian Govt try to give the first chance to foreigners or tourists to exchange their 500, 1000 denominations.
Nov 29th, 2016, 03:16 AM
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http://www.bbc.com/news/world-asia-india-37972634
Do you have anything to cite to show that tourists are getting preferential treatment? I read this article and others and no one is getting special lines. Read the article. A British couple stood in line with everyone else and then the bank ran out of money.
In addition a girl I know just got back a few days ago and she said no special treatment for tourists.
Do you have anything to cite to show that tourists are getting preferential treatment? I read this article and others and no one is getting special lines. Read the article. A British couple stood in line with everyone else and then the bank ran out of money.
In addition a girl I know just got back a few days ago and she said no special treatment for tourists.
.
Dec 3rd, 2016, 06:10 AM
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Follow up. My wife just spoke to her sister in Ajmer. Still having problems there getting money. Its the same issues, long lines, long waits and not enough new cash. Her niece is coming from Delhi to give her new money until this mess is straightened out. Astounding.
Dec 3rd, 2016, 07:30 AM
#17
I've been following this government decision which seems so arbitrary and has so badly affected so many people.
Like others have said, I'm sorry, too, to hear about the effects on your family. I hope this will be resolved soon.
Like others have said, I'm sorry, too, to hear about the effects on your family. I hope this will be resolved soon.
Dec 21st, 2016, 07:31 AM
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My wife spoke to her sister in Delhi today so heres what happened.She went to the bank for some money but they had none. This was at 0800 and they told her to wait, that it was coming. By 1600 the money arrived but they were able to give her a mere 2000 rupees which is like peanuts. They told her to get a credit card which is what the central govt. want most people to do. However the small markets many use are not cc ready.
So its till problematic to get money.
.
So its till problematic to get money.
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