Tuesday June 25, 2019
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Rs. 5,000 note in Pakistan raises many eyebrows


By NewsGram Staff Writer

Islamabad: Mainly used by players who are extremely rich, the Rs 5,000 note has raised many eyebrows.

credits: State Bank of Pakistan


An editorial “High-denomination notes” in the Dawn on Saturday said that the Rs.5,000 currency note is “the unlikely culprit in a number of high-profile conversations in the country today, and for good reason”.

“The note, issued in 2006, plays a key role in large cash transactions mainly of a speculative or unscrupulous nature. Some quarters in the State Bank argue that the note is essential to simplify the cash management operations of banks that require large volumes of currency notes in their sprawling network of bank branches, and that cash management on this scale using smaller denominations is too cumbersome,” it said.

 Who really needs and uses the Rs. 5,000 note?

“It’s rarely seen in retail transactions. Much of the demand for the note, which circulates mostly outside the banking system once issued by a branch or ATM machine, comes from players who settle large transactions in cash on a daily basis. This should automatically raise questions about the nature of their work,” it added.

The daily said it is easy to make the case that the currency note ought to be discontinued. “Large payments should be made through the banking system, and retail customers rarely need such high-denomination currency.”

(With inputs from IANS)

Next Story

People are More Likely to Return a Lost Wallet if it Contains Money, Shows Study

Raising the financial stakes strengthens the effect

Wallets like these, with cash, a key, a grocery list and business cards, were used to determine honesty. VOA

What would you do if you found a lost wallet? New research suggests that your answer may depend on what you find inside.

In 38 out of the 40 countries studied, people were more likely to return a lost wallet if it contained money. The finding, which goes against existing models of human behavior, could help policymakers find ways to encourage people to be more honest in social and business settings.

Economic models predict that people are more likely to be dishonest if there’s money on the line. Financial self-interest isn’t the only important factor, though. The new study suggests that it’s also important for people to see themselves as honest.

Self-interest versus self-image

In order to investigate how self-interest and self-image interact in the real world, a research team led by Alain Cohn of the University of Michigan used a classic moral dilemma: finding a lost wallet.

wallets, money
The average percentage of wallets returned jumped from 61 percent to 72 percent when the amount of money was increased. Pixabay

The researchers turned in 17,303 “lost wallets” to employees at public places like banks, theaters and post offices in 355 cities spread across 40 countries. The transparent plastic showcased the contents: business cards, a grocery list and a key. In addition to those personal items, some wallets contained money, $13.45 in local currency, adjusted for the country’s purchasing power, and others contained none.

The researchers tallied the number of wallets returned and investigated whether the people who received them were less likely to return them if they contained money, as expected.

“To our surprise, the answer is overwhelmingly no,” Cohn said in a teleconference.

Money made a difference

In nearly all of the countries studied, people were more likely to return a lost wallet that contained money than one that didn’t. Participants in Switzerland and Norway were most likely to reach out to the owner, and those in China and Morocco were least likely, but the trend persisted across the globe. On average, the return rate rose from 40 percent when the wallet didn’t contain money to 51 percent when it did.

Raising the financial stakes strengthens the effect.

In the U.S., U.K. and Poland, the researchers increased the amount of money from $13.45 to $94.15. With even more to gain from dishonesty, people were more likely to return the lost wallet. The average percentage of wallets returned jumped from 61 percent to 72 percent when the amount of money was increased.

wallets, money
Financial self-interest isn’t the only important factor. Pixabay

“While the results were initially surprising to us, we were not the only ones who did not anticipate this pattern,” Cohn said.

The researchers asked economists and non-economists to predict the outcome of the study. Both groups incorrectly predicted that the more money the wallet contained, the less likely the participants would be to return it.

Although the respondents believed that people were more likely to keep lost wallets that contained money, another group surveyed felt that the more money they found in a lost wallet, the more it would feel like stealing if they kept it.

“The evidence suggests that people tend to care about the welfare of others and they have an aversion to seeing themselves as a thief,” Cohn said.

Selfless tendencies

Do people think only of themselves when considering a dishonest act, or do they think of others as well? To test this, the researchers removed the keys from some of the wallets in the U.S., U.K. and Poland and found that the average return rate was 9.2 percent higher when the wallets contained a key.

Since the key is valuable to the wallet owner but not the wallet finder, an increase in the return rate for wallets with a key shows that people consider how others may be harmed by their dishonesty.

wallets, money
“The evidence suggests that people tend to care about the welfare of others and they have an aversion to seeing themselves as a thief,” Cohn said. Pixabay

While other studies have shown that people weigh the monetary rewards against the damage done to their self-image when acting dishonestly, this is the first field study to show that this is a global phenomenon.

“It’s so much work to run a study across so many national cultures and with so many observations. This is not an easy thing to pull off and to do it in such a controlled, really well-organized way, this is really something,” said Nina Mazar, a professor of marketing at Boston University who was not involved in the study.

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In the case of a lost wallet, the right thing to do is clear. Most scenarios aren’t so obvious, though, and researcher Cohn suggests that a next step could be to study cases “where perhaps it’s less clear whether doing the wrong thing is actually being seen as wrong.”

The study underscores the importance of self-image concerns in decision making, and exploring the more nuanced situations can help researchers understand why people choose to act dishonestly, which can help policymakers encourage civic honesty around the world. (VOA)