This comes up as a surprise to the nation when the Prime Minister of India on November 8, 2016, announced scrapping the Rs.500 & Rs.1000 Notes in India with immediate effect from today midnight. This move will make these notes invalid in one of the major mugging on black money which arises due to corruption. He clearly mentioned that these notes will now become mere paper.
Individuals who possess these currency notes can exchange these in the post offices – sub and head and in the banks from 10th November to 30th December, by producing a valid ID proof like voters ID Card, PAN Card, and Aadhaar Card. After 30th December, these notes will be accepted by the RBI – Reserve Bank of India only, that too after a declaration is submitted.
Main points of the speech made by PM
- When Modi government came into being in 2014, the whole world spoke about India having an economy that wasn’t consistent. But in present situation – India is recognized as an economic star by the World Bank and IMF.
- The main motto of Modi government is governance and progress for every Indian. The entire government has always focused on empowering the poor and for this, numerous schemes have been introduced.
- Black money and corruption are strong diseases that are deeply rooted in the nation. They are big hurdles to country’s success.
- Even though our nation is one of the fastest-growing nations of the world in terms of economies, it is not far left behind in global corruption.
- Government’s measures to check on the black money is paying off well. For this, a voluntary disclosure scheme for the undeclared money was introduced which experienced good response.
- Till now 1.25 lakh crore money which is termed as black money has been identified and recovered.
- The fight for black money is still on. India’s people have 50 days to exchange the notes of Rs. 500 and Rs. 1000 from the banks and post offices.
The need to ban Rs. 500 and Rs. 1000 Notes in India
There are lots of occurrences of fake Indian currency notes in a higher denomination like Rs.500 and Rs.1000. High denomination notes have been misused by terrorists and for hoarding black money. Most of the criminal activities involve using these fake notes. India remains a cash-based economy, hence the circulation of Fake Indian Currency Notes continues to be a menace. In order to contain the rising incidence of fake notes and black money, the scheme to withdraw has been introduced.
So what is next?
If you are concerned about how this will impact you, then these highlights are the answer:
- The banks are to remain closed for the public work on 9th November 2016.
- If you have the notes of Rs. 500 and Rs. 1000 then you must deposit them in banks or post office accounts latest by December 30, 2016. There shall be no limit levied on deposit amount by any bank.
- You can also exchange the old notes at the nearest post office or bank by producing a valid ID proof and limit for such transactions is Rs. 4000 up to November 24, 2016.
- This announcement doesn’t impact electronic funds transfers, credit or debit cards, demand drafts or payment by cheque.
- ATMs will not work on November 9 and 10
- Some of the institutions have been allowed to accept the notes of Rs. 500 and 1000 for 72 hours. These are – burial grounds and crematoria, government authorized milk booths, central and state government approved consumer co-operative stores, gas, diesel and petrol stations, airline, buses and railway ticket counters , from where tickets are purchased and government hospitals and medical stores