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Will Burning A 1000 Rupee Note Make India Poorer By Thousand Rupees?

Have you ever pondered over the issue of burning a note? How can burning a 1000 rupee note make India rich or poor by a thousand rupee? Will it affect the GDP of our country? Think, think! Well, if you're unable to find out the answer, then read on further to know the consequences of burning a note.

NOTE: Your point of view may differ from mine. I would like to know your views too. So, please don't forget to share your thoughts in the comments section below.

Recommended story: Art of investing in Indian market with TriFid Research 

Will Burning A 1000 Rupee Note Make India Poorer By Thousand Rupees?

Will Burning A 1000 Rupee Note Make India Poorer By Thousand Rupees?

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  in Desi

Have you ever observed a 1000 rupee note properly? 

Have you ever observed a 1000 rupee note properly? 

It is clearly written over the note that: 'I promise to pay the bearer the sum of thousand rupees'. 

What will happen after burning a note of 1000 rupee?

What will happen after burning a note of 1000 rupee?

Will you get your money back by the government of India? 

You must understand that any note possesses a symbolic value. 

You must understand that any note possesses a symbolic value. 

The cost of making of a 1000 rupee note is Rs 3.17. 

Burning a note will of course make you poor by a 1000 rupee. 

Burning a note will of course make you poor by a 1000 rupee. 

You can no longer claim your money back from the governor of RBI.

Did the governor of RBI just become richer after the burning of that note?

Did the governor of RBI just become richer after the burning of that note?

But governor is just an employee of the RBI. 

You have made India richer by a 1000 rupee. 

You have made India richer by a 1000 rupee. 

So, basically burning a note by you has contributed to the GDP of India. 

But there is a twist to the story.

As we know now that Rs 3.17 is the amount spent on making a 1000 rupee note. 

As we know now that Rs 3.17 is the amount spent on making a 1000 rupee note. 

Thus, India got richer by Rs 996.83 precisely. 

Your money can be utilized by the government of India. 

Your
money can be utilized by the government of India. 

It can be invested in governance, construction of roads, bridges and printing notes. 

The above scenario is shown keeping in mind that the person  has paid all his taxes. 

The above scenario is shown keeping in mind that the person  has paid all his taxes. 

Well, it is illegal to burn currency in India as mentioned under the Central Government Act Section 489E in The Indian Penal Code, 1860.

Burning a note makes the government rich in the long run. 

Burning a note makes the government rich in the long run. 

The Government asks citizens after regular time intervals to replace their old notes with new ones from the bank. The government keeps a note of printed notes and thus can easily track if the notes collected are lesser than printed ones. So, the government prints extra notes and circulate them. It is up to the government to decide the utilization of notes. 

We must not forget the concept of depreciation. 

We must not forget the concept of depreciation. 

Due to devaluation of currency, the amount will be lesser than Rs 996.83. So, it can't be said that the government will get rich by Rs 996.83. 

Also the process of replacing old notes with new ones take a lot of time. 

Also the process of replacing old notes with new ones take a
lot of time. 

If the old currency keeps circulating, then the government wouldn't be able to find out torn or burnt notes. Thus, no one will reap the benefits in case of burning a note. Instead of burning a note, you can directly donate your money to a government organization.

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Will you consider burning a note or giving it back to the government of India?

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