PM Narendra Modi in his address to the nation Tuesday night announced the government decision to scrap Rs500 and Rs1000 notes from midnight November 08, 2016. This is a major step taken by the government to stop the spread of counterfeit money and black money laundering. The counterfeit currencies have been traced to big time terror activities funding from across the border. Recently two people were held with fake currency in Greater Noida. In October this year a coin-minting factory was busted in Bawana. It’s been reported that four in every 1,000 currency notes in circulation in India are fake. Fake currency can destabilize nation’s economy in a major way if unchecked. This path breaking decision will also render useless the black money hoarded. With the 500 and 1000 rupee notes banned, these notes will only be worth the paper they are printed on.
RBI Governor in the press conference later shed light on the government decision to scrap 500 and 1000 rupee notes.The governor informed about new Rs500 and Rs2000 notes that will go into circulation from November 10. The new 500 rupee note will have Red Fort while 2000 rupee note will sport ‘Mangal Yaan’ informed the RBI guv. Subsequently Rs 10, Rs100 and other denomination currency would also be printed added the Governor.
What you need to do with your current stash of 500 and 1000 rupee notes.
- Deposit them at the bank or post office from November 10 to December 30, 2016, a window of 50 days
- You can exchange them from a bank or post office till 24 November. However, the limit for exchange is Rs. 4000
- Remember to take Aadhaar card and PAN Card when you go to exchange notes
- After December 30, these can be deposited at select Reserve Bank Offices till March 31, 2017 by filing a declaration form citing reasons and proof
Your 500 and 1000 rupee notes will be accepted till November 11 (now extended to November 14) at
- Petrol Pumps and government hospitals
- Railway, airline, government bus ticket booking counters
- Consumer co-operative stores run by state or central government
- Milk booths authorized by state governments
- Crematoriums and burial grounds
Don’t Panic! You can pay by Cheque, DD, Netbanking, Mobile Banking and Plastic Money
Additionally, there will be no change in any other form of monetary exchange – cheque, DD, payment via credit or debit cards. This move will kick in use of plastic money and cashless transactions in a big way. We hope the security aspect of such transactions is taken care of by stringent rules and other checks and balances. We feel rising fraud cases in cashless transactions, besides lack of awareness, is the main reason people desist from going the clicking way. This all seems set to change now. Times are ripe for trash the cash!
Rs2000 denomination is big for mango people. I for one has never felt comfortable carrying Rs1000 note in my purse generally. And specifically due to problems it pose of getting the balance change. The same issue of change is predicted to occur over next couple of days as ATMs will stop dispensing.
How much Can you Withdraw
Post Offices and Banking for public would be shut on November 09. ATMs will not function on November 9 and at some places even on Nov 10. ATM withdrawals will be restricted to Rs 2000 per day and withdrawals from bank accounts will be limited to Rs 10,000 a day and Rs 20,000 a week from November 10. This, however, seems inadequate to meet the daily needs for a common household.
People making a beeline at ATMs and petrol pumps is expected around the country in a panic reaction. Some retailers like Future Group’s Big Bazaar capitalized on this opportunity and kept their stores open till midnight informing customers via SMSes. It would, however, had been great if the replacement money (Rs2000 notes at least) in the system would have been made available to the public. Then transition would cause much less panic and chaos. We are hopeful government will inform about the steps they will take to ease off the panic and chaos.
The limit of old and now defunct Rs.500 and Rs.1,000 notes that can be exchanged for freshly minted Rs.2,000 and new Rs.500 notes increased from Rs.4,000 to Rs.4,500 per day.
Cash withdrawal limit at ATMs hiked to Rs.2,500 from Rs.2,000 a day. The weekly limit of Rs.20,000 for withdrawal from bank counters has been increased to Rs.24,000. The maximum limit of Rs.10,000 per day on such withdrawals has been removed
PM Modi’s surgical strike on black money
This move has certainly taken the general public by surprise. But if we get past the teething troubles India is going to have a cleaner slate as black money and fake currency in the system would be flushed out. It is reported that 12 thousand crore fake currency racket has been operational in the system. Recently India’s global ranking on corruption had moved only to 76th position from 100th earlier. This revolutionary move by the government will wipe off fake currency and black money from the system in one sweep. Swachchh Bharat!
Please share your views on how this move has affected you and your experience while exchanging the notes and in the comments section. Alternatively, write to us through our Contact page or through this button
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