A revolutionary news coming in from the Speech of Prime Minister of India, Narendra Modi which began at 8 PM today. Maybe you people would have already heard the news, however we decided to let everyone know about this important declaration by Government according to which Rs 500 and Rs 1000 notes will become completely invalid for usage, with effect from midnight i.e. from 9th November 2016.
You can visit http://finmin.nic.in/ for more documents on this move.
Yes, you hear it all right. It seemed to us a fake message at first like the ones circulating on Social Media but this time it is something serious. What this simply means - You cannot use Rs 500 and Rs 1000 notes for any transactions from 9th Nov 2016. There are a few exceptions however - Government hospitals, pharmacies at such hospitals, railway ticket counters, petrol pumps and few other places will accept the notes till 11th Nov 2016 for the respite of people.
What will happen to the Rs 500 and Rs 1000 notes then ?
Well ! This is the question doing rounds in your mind. Isn't it ? Well, you do not need to worry as you can get your notes exchanged from the bank and the post offices till 30th December 2016.
You can exchange old notes of Rs 500 and Rs 1000 at any bank, head post office or sub post office by showing them an ID proof such as Aadhar Card etc. The limit for this is however Rs 4000 upto Nov 24. Also there’ll be a limit on withdrawal of Rs 10,000 per day and Rs 20,000 per week. This limit will be increased in the coming days. There would be no restrictions of any kind on non-cash payments by cheques, demand drafts, debit or credit cards and electronic fund transfers.
There is no restriction of depositing your legal Rs. 500, Rs. 1000 notes for exchange if you meet KYC norms in bank account else there will be Rs 50,000 limit. Banks will take extra precaution. and share info with Income Tax dept. as required.
Not only you can exchange the money but also deposit it in the bank account and there is no limit on that. However, make sure all money you deposit is white money as otherwise it can land you in a big problem
Banks will have cameras for all transactions. So people should be careful while exchanging or depositing legal cash.
Also, if due to some reasons people are not able to get their notes exchanged or deposit till 30th December, they can do the same in RBI Bank by showing income declaration and proof of identity till 31st March 2017.
What steps you should take to get legal notes ?
- Collect all the currency notes kept in your wallet or safes or anywhere else in house. If you have notes in Bank Lockers, then they can be collected after Nov 9 as banks will be closed on 9th.
- Separate all the Rs 500 and Rs 1000 notes from these currency notes. Count them all and make bundles of Rs 4000 total value ideally as this is what is allowed per day to be exchanged. If you are looking to deposit, then there is no limit as such.
- Now go to your nearest banks and stand in long queues from 10th November to get your notes exchanged or deposited. You will need to take ID Card such as AADHAR with you.
- As a precaution, also keep a list of serial numbers of notes you exchange or deposit as RBI will keep track of the same and income tax department will look at how much is one dealing with.
Why this move has been taken by Modi Government ?
India has been trying to develop from long and curb various issues like Poverty, Corruption, Iliteracy, Terrorism etc. However, after analysis - The Government has come to the conclusion that Black Money is the one that is holding India back from what it is looking to achieve. Modi, earlier had announced that people can declare their income by September 30 and no action will be taken against them and as a result of that, 1.5 Lakh Crores were recovered by the Govt.
However, this move of demonetization of Rs 500 and Rs 1000 notes has been taken to deal with the remaining black money and the fake currency. Terrorism activities are usually sponsored by this money as terrorists from across the border spread counterfeit currency notes.
After this move, people having illegal money will have no option but to see their black money turning into useless paper and counterfeit notes of fake notes will also be eradicated from the country which will lead to a rapid reduction in Black Money and Terrorism. This is the reason, this is a bold and good move by the Government.
Benefits of this move
- This historic step will open up new opportunities for poor, neo middle class and middle class
- Real Estate Prices, Higher prices, healthcare to come within the reach of common citizens
- Funding for arms smuggling, espionage, terrorists to be choked
- Circulation of large volume of counterfeit currency to end
Will all high value items be bought with Rs 100 notes then ?
A good question, that is. You will surely be wondering that what if you want to buy a Rs 10,000 worth TV ? Will you be paying a full bundle of Rs 100 worth notes ? Well, the answer is NO ! The Government has announced that it will be launching new designed Rs 500 and Rs 2000 notes and they will be brought into the circulation soon.
The notes look like below -
Visit here to see Rs 500 note in more detail
Visit here to see Rs 2000 note in more detail
They look good. Don't they ? The new notes will be called Mahatma Gandhi's series of bank notes and carry a picture of Delhi's Red Fort. The 2000 rupee note that is being introduced carries an image of the Mangalyaan to celebrate India's Mars mission.
Important Keypoints
- Rs 500 and Rs 1000 currency notes will be invalid for use from 9th Nov 2016
- For people's convenience, the notes will be accepted till 11th Nov at Govt. Hospitals and the pharmacies in there, railway ticket counters, petrol pumps, Airline Counters, Govt Bus Counters, consumer co-operative stores authorised by Central & State Government, Milk booths authorised by State Govts crematoria & burial grounds.
- New notes of Rs 500 and Rs 2000 denomination with new design will be circulated soon in the market
- People can get their old notes exchanged from or deposited to Banks or Post Offices till 30th Dec by showing Proof of Identity and from 30th Dec to 31st March by showing an additional Declaration of Income.
- There will be a limit of Rs 4000 per day till 24th Nov which will be increased gradually
- Banks will remain closed on 9th Nov for public work
- Withdrawal from Automatic Teller Machines (hereinafter referred to as ATMs) shall be restricted to Rs.2,000 per day per card up to 18th November, 2016 and the limit shall be raised to Rs.4,000 per day per card from 19th November, 2016
If you got any more questions on this topic or have any doubts, you can leave a comment and we will get back to you asap. Also, share your views on how you feel about this decision.
Time for a laugh
Well, the internet these days spares nothing. A new topic - Flood of new jokes is what follows. There are various memes and funny tweets made on this new decision of the Indian Government headed by Narendra Modi. Lets have a look at few of them -
https://twitter.com/Psilosophy/status/796012212225601537
https://twitter.com/thebobbydeoll/status/796032914278535169
https://twitter.com/Babu_Bhaiyaa/status/796031948342718465