Very good job Modi. You have done what many of friends have been asking for. To ban 500/- and 1000/- rupee notes. But again 500/- and 2000/- notes will be issued. Hmm, now it all depends on the quantity of such new notes will be issued.

Everyone is talking about the news.
  • I got phone from my father to exchange any 500/- notes that I have by going to bank.
  • Today morning, school children are talking about the ban of big notes, while they are waiting for the school gates to open.
  • School gatekeeper was discussing with his friend “Chukkalu kanipisthayira ippudu, avunu baga chukkalu kanipisthaayi black money unna vallaki"
  • Colleges are asking did you exchange your 500/- notes?
  • Another said “Jabardhasth check."
  • Petrol bunks are asking to fill petrol for 500/- otherwise they are not accepting those notes.

You can here these words everywhere today, from everyone’s mouth, I don’t know of any past news that has spread like this one. This is unique. This change tocuhes everybody in the country. Since everyone has money to transact with.

Here are some of the contraints laid out as part of the anouncement
  • 500/- and 1000/- notes are invalid from yesterday midnight. Exchange these notes at post office or banks. (It was anounced just 6 hours before the ban, in the evening. My internet at home was not working so could not watch the historical anouncement.)
  • 2 days ATMs will not work.
  • New 500/- and 2000/- notes will be issued later this week.
  • Daily you can withdraw Rs 2000/- and in a week max Rs 10,000/-.
  • Petrol bunks and doctors can accept those notes.
  • Till december 31st you can return the current notes.

80–90% of the people in India does not need these big notes but 70–80% of the money in circlation is of big notes.

Impact on different people:
  • Majority of the transactions in Real estate are cash transactions.
  • People with marriages around this time will face problems in buying and getting money.
  • Children will see & know that the cash is essentially controlled by government.

Slowly if they can control the percentage of big notes to 10–20% of total cash available in country, it would be awesome. This is great step going forward. I wish in a long run, big notes are minimized.

First half in hindi, second half in english: https://www.youtube.com/watch?v=zmwQWe-jA_4