What if someone burns Rs. 1000 note ? Will India get poor by a thousand rupee?

Rs1000/500 ban, Indian economy,

What if someone burns Rs. 1000 note ? Will India get poor by a thousand rupee?

----------------------------------------------------------------------------------------------------------------------

Short Answer : NO, India will not get poor if someone burns Rs.1000 note. The person who is burning the Rs. 1000 note will become poorer by Rs. 1000.

WARNING : Burning Indian currency is crime under Central Government Act 
Section 489E in The Indian Penal Code, 1860 

Long Answer :

Rs.1000 note

If you see Rs. 1000 note carefully it is written on note

‘ I promise to pay the bearer the sum of five hundred rupees’. - RBI Governer

It's a promise by the governor of RBI that when you hand over this note to the bank, He will pay you the equivalent of 1000 rupees.

This promise is written over notes of all denominations.

You must understand that the Note actually costs very little. It only has symbolic value. Each note made up of paper and a few other materials in minute quantities costs just about Rs. 3 to 4. The 1000 Rupees Note costs Rs 3.17 to make.

but if someone burns the Rs. 1000 note

Now, that person no longer has a note.He can no longer claim anything at the bank.

The governor no longer has to give that person the equivalent of a thousand rupees.Thus The RBI governor got richer by Rs. 1000 that means indirectly Indian govt got richer by Rs. 1000 - approx Rs. 4 (money required for note creation) = Rs. 996

If someone burns Rs. 1000 note, That person loose Rs. 1000 and Govt of India gain Rs. 996

WARNING : Burning Indian currency is crime under Central Government Act 
Section 489E in The Indian Penal Code, 1860 

Reference : 

https://goo.gl/ALJFwG

https://goo.gl/7aObvY