Only 5 lakh of your deposit is insured in a bank by rbi, i just checked.
Exactly lol. When I buy momos or Pani Puri the bhai tells me âPhonepe kardhoâ when I hand them cash. They donât have change at all as everyone pays via UPI. Once I even had to leave without change and come back next day for change.
Wait a minute⌠Now I get it. Buy gold with kaccha bill in cash . Only legends will understand this 
. Btw is that true though ?
Even if itâs true, you think somebody will tell you on this forum.
Does a big jeweller like Tanishq allow to buy on kachcha bill. Small retailer can do that
What is katcha bill. Tried searching but did not find anything. Need to understand this concept
Well itâs a shady stuff, but i am quite sure this is still there and is still revolving around.
Itâs quite simple, you want to buy a piece of jewelry but you donât want to pay GST, excise duty and other taxes. The seller also doesnât wants record this into official ledger, wants to hide it in his books. He would discount you the jewelry because it helps him keep cash in black. So here is the deal.
You pay him in cash for jewelry and he provides a bill, usually amount is negotiated and he records in his secret books, this sale hasnât officially happened. So the benefit is you get discounted no tax jewelry and the seller doesnât record profit . Frankly itâs black money if thatâs what you are thinking.
The downside is since itâs kacha bill, I mean not official you canât go to court if you get cheated or if there is dispute. The biggest con is since itâs not recorded anywhere and if tmrw income tax officers question where did this jewelry come from and how did you pay, then i donât know what answer you would give? (People usually say itâs ancestral jewells). Second important is if this gold or jewel gets stolen then itâs very hard to recover. Police will play a game here. They would ask you to show bill as proof and most of the times they know itâs kacha bill, very illegal, so if they recover your gold or jewel from thief, informally you pay a bribe. Or if they canât recover they wonât bother because you officially didnât buy from govt eyes.
@neha1101 :- where are you from? I mean I thought you are from kerala. Like I thought you would know because they buy physical gold like crazy
Used to be a time back in 2009 where here in big jewellers you can openly ask kacha bill. Believe me or not they actually give you an option to choose kacha or pucca bill. I remember going to GRT jewellers with my mom and they used to tell you can save this much money nd all. This was during congress times. Not being political, but frankly during congress time , a lot of this was running around and they had very dumb ppl in ITD. I donât know about now since we moved to paper assets but do know ever since modi came , digitalization things are lot different but still people always find a way. Very hard to say if big jewellers do that or not (havenât stepped into jewellery shop since 2013) but small jewellers, yeah everyone their great activities including police whom they have cordial relationship by paying complimentary fees(shhh saying itâs a bribe ).
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Donât mean to start on a political debate⌠but important to set the record right⌠digitisation started way before mudiji came to power in 2014 âŚ
bringing the post office schemes under digitisation & getting all the post offices in India on the network & linking them was started during Congressâs tenure. Aadhar was started by congress. DBT was started by Congress. A lot of other reforms were also done.
Understood. Thank you for a detailed message. I did not know there was a katcha bill. In our place this is quite rampant, only thing is seller asks if i need a bill or no. If i say no, the goods is given and no bill is given. If the seller is well known there is a implicit understanding and if the product bought is really bad he will give replacement. However if it carries a guarantee period seller will advise to take the same with a bill. Example water motor recently bought. Had the option of taking it without bill. But the seller advised to take the bill because it had warranty.
They dont give any kind of katcha bill concept.
This is mainly for small ticket items like u want to buy a electrical item or plumbing thing. Not sure if this is great in buying jewellery as u need a bill in case of sale. Maybe this katcha bill is more in north india.
Gold is always bought from well known retailers and with bill. This is because too much cheating happen with small retaikers as gold content will be lower and copper or impurities will be more. So cant trust them. For that matter u cant trust the big retailers too but they say they have bis hallmark.
Its just like selecting a broker for investment. Will u choose a small time broker or a reputed one.
Do people really buy jewellery or gold using this katcha bill? High ticket purchases without any recourse.
I suppose itâs the easier option to hide money from your government, since electronic is easily traceable and cash can be made worthless on a whim.
At least at my place they do. And not only people with black money but also the ones who have white money. Because making charges are less at small retailers. Plus you get to save on taxes.
Regarding purity, even the smallest retailers have karatmeter these days
Yes this is easy to transport and store than cash. Many people i am not blaming or pointing fingers but many people who run establishment where cash is handled they do this.
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Itâs there everywhere. May be you are not exposed to such markets.
I am also from South.
Why donât you come down to my place? Not sure about Pabbas but I will definitely show you 2000 note. 
Alright - Sep 30 is the date till which it will remain a legal tender.
It sends out a wrong message, not to the black money hoarders but to international community.
Just take the example of $100 bill, the majority of these are outside of USA. The strength USD has because more people outside of US are depending on it eg: Argentina.
When we stop a high priced denomination, it sends a wrong message to HNIs, FIIs and other foreign investors even like VCs.
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rbi has clarified this?