Comment by photochemsyn | Hacker News Reader

Comment by photochemsyn | Hacker News Reader

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India outlawed the usage of any bill larger than the equivalent of a $US 5 (500-rupee and up) in 2016, which was intended to force people into the digital payments system. This is much more coercive than the Euro-US approach. For an overview and pro/con arguments in the global government-led war on cash:

https://www.investopedia.com/articles/investing/021816/why-g...

It's also an attempt to collect a percentage of all transactions, which will be funneled to the usual suspects, here's what led to this:

> "NEW YORK, September 19, 2012 — The Bill & Melinda Gates Foundation, Citi, Ford Foundation, Omidyar Network, U.N. Capital Development Fund (UNCDF), U. S. Agency for International Development (USAID), and Visa Inc. announced today the launch of the Better Than Cash Alliance. The new initiative will call on governments, the development community and the private sector to adopt the use of electronic payments..."

Please do remember that the 500 and 1000 rupee notes were promptly replaced with a new 500 and 2000 rupee note series.

Moreover, it was not made illegal, rather it was no longer considered legal tender. A far cry from making it illegal.

There are on the other hand limits on the size of cash only transactions without a PAN Card (tax documentation)

Recently, the reserve bank has announced that it is going to withdraw the 2000 rupee note. That means that it will no longer print or issue via banks 2000 rupee notes.

They will still remain legal tender.

> They will still remain legal tender.

Until Sept 30th 2023. An individual may exchange up to 10 notes (INR 20,000 per day) for cash between now and Sept 30th or deposit it into their account (no limit -- but be prepared to answer the taxman if there are enquiries next year on your tax return seeking the source of funds for the deposit).

How is "illegal" and "no longer considered legal tender" different?

Regardless of the intentions, I don't see how banning people from using currency notes that they legally owned is not dictatorial. Why is using cash deemed guilty before even having any evidence.

Illegal: you get arrested for possession.

Not legal tender: you cannot pay taxes with it, and generally cannot use in monetary transactions.

Agree with the definitions. I guess the OP meant it like "not allowed to use" rather than actually getting arrested for possession.

Indian rupees arent even a convertible currency...

Wrong. An older series of currency notes were replaced by newer notes. Nothing was outlawed.

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