Ban on Rs 500 and Rs 1000: New trade opens up

The demonetized high currency notes are being exchanged at premium rates by vendors

Ban on Rs 500 and Rs 1000: New trade opens up

A new black market has opened up in the trade of the now demonetised Rs 500 and Rs 1,000 in the country barely hours after Prime Minister Narendra Modi announced the measure in a move to end black money.

The notes are being exchanged at premium rates by vendors where Rs 500 notes are being exchanged for Rs 300 or Rs 400 and Rs 1000 notes at Rs 600. The panic started last night when PM Modi announced that Rs 500 and Rs 1000 notes wouldn’t be legal tender from midnight, and all the hell broke loose. The people lined up in front of ATMs in attempts to arrange for lower denomination of notes and out on streets trying to use their higher denomination of currency notes.

In the morning, markets faced huge crackdown as Sensex fell more than 1000 points, while Nifty fell for around 300 points. The markets have improved since then, but the instability continues.

General public has been trying to utilise their currency notes, and the rows of queues outside petrol pumps pointo increasing frustration. The troubles have been increased since last night for the traders on toll roads as well, as last night witnessed a 7-km-line on the Delhi-Jaipur highway because truck drivers didn’t have lower denomination notes, and the authorities rejected the Rs 500 and Rs 1000 notes.

Interestingly, it has been claimed that the cash to be trashed is Rs 6,70,000,0000000 in 1000 Rupee Notes (i.e 6 lac70k Cr) and Rs 8,25,000,0000000 in 500 Rupee Notes (i.e 8 lac 25k Cr).

Social media has been going in a frenzy about the announcement and trolls, memes, explanations, jokes, etc have been making rounds across all the mediums.

Though the government assured that this would be a huge step towards cracking down on black money, it seems to have created a new black market.