[legolas2412]

You really think that the Low/Middle class is the target here? Are the people hoarding crores in cash low/middle class?

Low/Middle class is indeed saving 30p per rupee. But they aren't storing them in 1000 rs notes, they are spending that to better their lives. This is really against Medium to big businesses, and rich people like jewellers, goldsmiths and builders.

[wav-part]

> You really think that the Low/Middle class is the target here? Are the people hoarding crores in cash low/middle class?

Earning Rs 21,000/mo even in 2nd-tier cities are not uncommon. Your local small nookad shop (mom & pop shop) can easily clear that in one month. And most of them are not in system. So guess who just had their saving (hoarding? lol) evaporated ?

Those who have too much money, has money to hire tax experts. So IDK this really looks like anus-f__king at scale.

[intended]

I think the intended target doesn't matter, because the collateral damage is much larger.

I am genuinely unsure as to how this will play out - I see the good intentions and the executional hazards.

Facts about the economy - it's largely unorganized. Meaning builders and jeweler are not as large as the people doing labor and other mom/pop transactions.

Being unorganized they don't have bank accounts (also ,exams that wealth is stored in assets like gold).

M1 money, is 27 trillion. If 60% of that is in 500/1000s that's 16 trillion. Which has become useless over night, and will disproportionately affect those unorganized people who aren't on the Internet or HN.

The other effect is that yes, people are going to be unable to do black real estate transactions. But this has happened before and it didn't end those particular transactions.

I'm guessing this will be a windfall gain for PSU banks and the exchequer.