Soon after the India Govt’s decision to demonetize old Rupee notes, people with old cash lying around are running frantically to convert old notes of Rs.500 and Rs.1000 to new ones. And they’re doing everything they can. But please be careful, not to do the following things to convert your old money to new denominations.
Some of these are illegal and you risk the high chance of getting caught or is being helpful to those people who are trying to convert black money to white.
1. Buy gold in bulk
A lot of people are buying huge amounts of gold and precious metals to “unpark” their old stash of Rupees. The Govt. is keeping active vigil of high value transactions and even if you manage to escape the authorities, they will trace it back from the place you did the transaction. So stay away from it.
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2. Distribute cash to relatives or friends.
Some politicians were caught distributing cash to poor people with no record. What’s their agenda? Park their cash with the poor people and ask them to give it back to them in to their bank account. (They promise 0% loans). This is illegal obviously. Distributing large amounts of cash with no proof should not be done.
3. Buy railway tickets only to cancel.
A lot of people are now frantically buying first class railway tickets to locations they are not going to. The idea is to book a ticket at what ever price it is to places like Kashmir and what not, with your old currency. Only to cancel it the next day to get new notes. Indian railway is one place which still accepts old Rupee notes.
Please avoid doing this because the authorities are only giving back amounts above 10,000 Rupees in cheques or electronically. You don’t want to end up in a trap. (Source)
4. Send cash in mail from or to overseas
Sending out cash in envelopes via mail from or outside of India is illegal. Please do not send old tender notes via mail.
5. Donate to temples
Govt. has already cracked down on temples and priests who were converting black money to white by accepting them as offers and taking commission for it.
6. Fixed Deposit in co-operative societies
There is wide spread belief that co-operative societies and banks are less regulated and hence won’t come under the radar of the Income Tax service. Well, this might have been true. But recent news indicates that Govt. is keeping strict track of all transactions in co-operative societies and banks and they are being reported to agencies in light of the de-monetization move.
So, those are some things that came to my attention, people are doing to convert their old Rupee notes to new. Please let your friends and family know about these methods. Advice them not to do these, as many people are recommending these are short term fixes. The reality is that they’re all illegal and only attracts a penalty from the Govt.
All the best!