For The First Time In India, The Rich Beg The Poor To Help Them

In India the rich who have large denomination bills on hand are in a pickle. Large bills are no longer allowed to be used and they have to go somewhere. So the rich are using their hired staff to launder the money for them.

Maids, drivers, nannies, and cooks in India are experiencing unusual politeness from their employers. Beyond the work they do every day, they suddenly have another use – to launder the undeclared cash which the rich have been hoarding in steel wardrobes, under the mattress and in under-bed storage.

This sudden outbreak of niceness is the outcome of India's current crackdown on "black money" - income in the form of cash that has not been declared to the tax authorities. On November 8, the day before Sharma's employer became a lamb, Indian Prime Minister Narendra Modi scrapped 500 and 1000-rupee notes to root out corruption and force more Indians into the tax net.

With any large billed money at home the rich can't do anything with it. The banks will fink them out, and then they will have to pay penalties. The Indians have until Dec. 30th to put a small amount of large billed savings they may have stashed at home in the bank, no questions asked.
It's a mess, is it coming to a country near you?

In one fell swoop, the tens of millions of rupees that the rich kept at home in these denominations became worthless. If they deposit the money in the bank tax officials will pounce, imposing staggering penalties and taxes.

However until December 30, each Indian is allowed to deposit a smallish sum of 250,000 rupees in such defunct notes in their bank accounts without questions being asked. That is why the rich need the service of the poor.

www.smh.com.au...

That's hilarious

a reply to: MiloTheMarauder

This is a situation that is under consideration in many countries, US included.

Why Larry Summers wants to kill the $100 bill

www.marketwatch.com...

originally posted by: seasonal
a reply to: MiloTheMarauder

This is a situation that is under consideration in many countries, US included.

Why Larry Summers wants to kill the $100 bill

www.marketwatch.com...

Does anybody in the US have a lot of 100 dollar bills laying around besides criminals? I mean we got rid of large denominations in '69.

a reply to: seasonal

Invest in bitcoin if that happens

Interesting tactic, but a little extreme maybe? 1000 rupees is the equivalent of $15 USD. Are those really high denomination notes?

originally posted by: Syphon
Interesting tactic, but a little extreme maybe? 1000 rupees is the equivalent of $15 USD. Are those really high denomination notes?

Never thought of it like that lol, those must be some "black money". I don't know much about India or their tax laws.

a reply to: MiloTheMarauder

the banks don`t even have them.
I haven`t dealt with cash in at least 20 years I just use my debit card for everything.
about 6 months ago I went to the bank to withdraw $2,000 to buy a car ( the seller would only take cash no checks)
the bank gave me two $100 bills the rest was in $50 and $20 bills, I was thinking, are you kidding me?
I couldn`t even fit that many bills in my pocket I had to walk out of the bank holding it in my hand.

a reply to: Tardacus

I do have some cash, but that's my slush fund so i can buy stuff that isn't high on the WAF (wife approval factor).

a reply to: MiloTheMarauder

Regardless of the well sounding reasons all governments are great at separating an individual's money from their pocket book or stash. They want everything done on plastic so they can track your every purchase and feed the marketing gurus...not to mention it is guesstimated that over 4 billion in untaxed money flows every week in the states. Can't have that now can we... Of the Government by the government for the government...if no one is looking.

It reflects Indian reality perfectly and it will really hurt class of new rich who usually gained their wealth by very nefarious means and sustain it by bribing everyone.

For most Indians is 250.000 Rupees sum from other world and they will probably not stash it at home because of long time inflation around 8%. BTW ATM withdrawals are limited to 10.000 Rupees.

Finally India is not prepared to go cashless. IMHO it will take at least one generation. USA or Western Europe are almost ready.

Add
I read book from modern India where one of tasks of main character as driver was to collect money from ATMs around Mumbai so his boss have enough cash for bribes.

a reply to: MiloTheMarauder

What constitutes "a lot of 100 dollar bills"?

Like many people, I keep a reasonable currency reserve in cash.
Credit & ATM cards may not work overseas, while cash is the "universal constant".
Travellers checks are a giant pain in the butt to sign in reasonable denominations.

If I were hoarding money, I'd miss the McKinley, Chase & Cleveland bills, but $100 bills are sufficient.

ganjoa

a reply to: ganjoa

250K Rupees or around 3,700 dollars. Since that is how much they can deposit, no questions asked.

a reply to: MiloTheMarauder
That 3,666$

a reply to: seasonal

I'm horrible at math.

a reply to: MiloTheMarauder

I fat fingered my first reply, it's late too.

a reply to: seasonal

I must of misplaced a decimal

a reply to: MiloTheMarauder

Me too, again it's late college ball on too.

originally posted by: MiloTheMarauder

originally posted by: seasonal
a reply to: MiloTheMarauder

This is a situation that is under consideration in many countries, US included.

Why Larry Summers wants to kill the $100 bill

www.marketwatch.com...

Does anybody in the US have a lot of 100 dollar bills laying around besides criminals? I mean we got rid of large denominations in '69.

LOL Not only criminals do that. Ever heard of a "rainy day fund"? People bury or hide money all the time, and that doesn't even include the personal safes that people may own.

a reply to: enlightenedservant

Maybe safe registration is in order?