There are people who are worried about the black money hoarders destroying the 500/1000 currency notes.
Please don’t be stressed about it, this is exactly the reason why Government did the demonetisation.
Let’s assume there are 50- 1000 notes (INR 50,000) and 100- 500 (INR 50,000) notes in India, ie total INR 100,000.
Again let’s assume INR 60,000 is the amount that is white, that means tax paid (it maybe our savings in cash or tax paid transactions by businessmen)
This INR 60,000 will be deposited in banks and will be in circulation strengthening the economy. ( Remember your grand mother storing cash she saved, that money is stale and not adding up in the growth of country, if she deposits the same in an bank account it gets into circulation, bank can lend that amount to others and levy interest for mutual benefits)
The leftover INR 40,000 is the black money, and the people holding them can’t convert it into white.
After March 2017 these notes will not be legal tender, so they will either destroy or giveaway the aforementioned amount notes.
This INR 40,000 is the actual profit for the country, as the Government can print new notes for INR 40,000 and use that in different activities, maybe constructing a new hydel power plant, or the road next to your house.
So this INR 40,000 which was hidden somewhere in pockets of black money hoarders is now out.
Also this is not the first time demonetisation has been done. In 1978 INR 1000, 5000 & 10,000 notes were withdrawn from circulation.
But at that point of time only 2% of the currency was in circulation and today “2016” over 86%.
- Right Time, Right Impact.