When I left for home from office, it was a calm evening. When I reached home, there were 450 messages on my Whatsapp! Effective tonite (Nov 8, 2016), Rs 500 and Rs 1000 will no longer be valid – they will be just a piece of paper.
How will this impact in coming day? Very difficult to say, but here are 5 things that I can think of
Real estate prices might come down
Lot of real estate transactions run on cash – either to cover up black money or to avoid paying high registration costs. While in cities like Bangalore, all transactions happen through cheque, cash rules in lot of other cities. Now that paper money is worthless, these transactions might not happen. And if they happen, will happen at lower price.
Stock markets might get more volatile in next few days
There are equal number of arguments floating around whether stock markets will fall or rise. This definitely means that they are going to be volatile for next few days.
Anxiety among people holding cash
People holding cash (in lacs) will surely be worrying about how to deal with paper currency lying around. Indian businesses work on cash – be it black or white – there would be anxiety among people to convert it to valid money.
Impact on daily wage earners
Blue collar workers or daily wage earners get paid in Cash. With so much confusion floating around, there will be lot of inconvenience. How will they be paid?
People with black money will start finding hacks to deal with it
Last but not the least, people dealing in black money will have sleepless nights. There are already lot of whatsapp messages floating around on what should people do with black money – well India is a land of Jugaad. And now there will be lot of innovations on that front.
If you are still struggling to figure out what just happened, do read this summary – All you need to know about void/ban on existing Rs 500 and Rs 1,000 notes