Banks

RBS share drop accelerates on stress test flop

Stressed. Shares in Royal Bank of Scotland have accelerated their losses this morning, falling over 4.5 per cent after the state-backed lender came in bottom of the heap in the Bank of England’s latest stress tests. RBS failed the toughest ever stress tests carried out by the BoE, with results this morning showing the lender’s […]

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Currencies

Renminbi strengthens further despite gains by dollar

The renminbi on track for a fourth day of firming against the dollar on Wednesday after China’s central bank once again pushed the currency’s trading band (marginally) stronger. The onshore exchange rate (CNY) for the reniminbi was 0.28 per cent stronger at Rmb6.8855 in afternoon trade, bringing it 0.53 per cent firmer since it last […]

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Financial

Sales in Rocket Internet’s portfolio companies rise 30%

Revenues at Rocket Internet rose strongly at its portfolio companies in the first nine months of the year as the German tech group said it was making strides on the “path towards profitability”. Sales at its main companies increased 30.6 per cent to €1.58bn while losses narrowed. Rocket said the adjusted margin for earnings before […]

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Property

Spanish construction rebuilds after market collapse

Property developer Olivier Crambade founded Therus Invest in Madrid in 2004 to build offices and retail space. For five years business went quite well, and Therus developed and sold more than €300m of properties. Then Spain’s economy imploded, taking property with it, and Mr Crambade spent six years tending to Dhamma Energy, a solar energy […]

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Currencies

Nomura rounds up markets’ biggest misses in 2016

Forecasting markets a year in advance is never easy, but with “year-ahead investment themes” season well underway, Nomura has provided a handy reminder of quite how difficult it is, with an overview of markets’ biggest hits and misses (OK, mostly misses) from the start of 2016. The biggest miss among analysts, according to Nomura’s Sam […]

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Categorized | Currencies

A cut out and keep guide to laundering those near-useless old rupee notes


Posted on November 25, 2016

Following the Indian government’s shock decision to withdraw 86 per cent of India’s currency from circulation there were some fun options available for those who wanted to swap out their old notes without attracting official attention — you know, the kind of attention that was the reason for the move in the first place.

Screen Shot 2016-11-25 at 12.14.34

Of course, you can go too far:

Some Indians are being too clever by half. A divorced man who had defied the courts by refusing alimony to his wife was seized with a new respect for the law and offered to pay her the arrears – in the banned currency notes. The judge threw him in jail until he paid in the new notes.

But even if you stay within the bounds of laundering sanity, your window to take up some of the less ludicrous options has basically shut since the government is saying that over-the-counter exchanges are closed for now. You can still swap your notes at the central bank up to a value of Rs2000, or deposit them in your account until the end of the year, but we reckon the willingness of people to take these notes even at a discount to face value or via a premium for the product they’re selling must be starting to fall.

Still though, we may be wrong and, heck, maybe you can still squeeze more into poorer people’s bank accounts on your behalf. From CLSA:

Screen Shot 2016-11-25 at 12.29.22

Note, Bitcoin isn’t mentioned. And it probably should be.

While here are the limited number of places you can still use the Rs500 note for transactions until Dec 15.

Very related links:
For the first time in India, the rich beg the poor to help them – SMH
Demonetisation: Last fortnight, over 30 times surge in Jan Dhan deposits; maximum from Bengal and Karnataka – Indian Express

p.s. the featured image on the this post, visible on home page, is from the RBI’s now slightly out of date currency jigsaw game. We assume they’ll update it once they stop accepting the old notes?

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