Demonetization Question. Why 2000 instead of 1000?
We all are clear and just appreciate and support the master stroke by our beloved PM on the demonetization project. However one puzzle that common people like us and dumb cry babies like (you know who) find difficult to understand is "How come having new 2K notes instead of 1K notes help in catching black money?" CA Mehul Shah has a probable answer. Though there may be better answers from the master visionary called NaMo. Let's Simply take 2 Scenarios to understand the funda ! Scenario A : If as per your suggestion , Rs. 2000 Note are not issued but only New Rs. 1000 Notes are issued. Lets say , for example Mr. X has Rs. 1,00,000/- black money in 100 Old Notes of Rs. 1000 each. Mr. X divides those Rs. 1,00,000/- into 10 Equal Bundles, each comprising of 10 Old Notes of Rs. 1000 each and puts each Stack on a Table. On Day 1 , in the morning Mr. X would deposit the first Bundle i.e. 10 Old Notes of Rs. 1000 valued at Rs. 10,000 into the bank and ...