In a bold move to curb the circulation of black money, Prime Minister Narendra Modi has scrapped the circulation of 500, 1000 Indian Rupee notes starting today. With the announcement, you’ll not be able to use the 500 and 1000 rupee notes starting today, unless you exchange the notes at your nearest bank and post offices.
Since the announcement came in less than three hours of the immediate effect, it has created a lot of confusion and panic among general public and this post is to help them to know everything about the government announcement and its impact.
Government is trying to put an end to the black money and most importantly to eliminate the circulation of fake notes that are being brought from Pakistan, Bangladesh and other neighboring countries.. The government has said Rs 500, 1000 Indian rupee notes are merely a useless paper starting today (November 9, 2016) until you exchange or deposit them at your nearest banks and post offices.
We see a lot of confusion among in the general public and people should not panic at this moment. Even the black money holders are not need to be panic, as they can deposit as much as they have to banks and file proper income tax reports. The government of India is fighting corruption and black money, so people should stand by the government side.
Things People Should Know
RBI has withdrawn the 500, 2000 Indian currency notes from circulation and will not no longer valid starting today November 9, 2016.
This movie is to convert the entire black money to white money and to curb the circulation of fake 500, 1000 Indian rupee notes.
Banks will be closed today (November 9, 2016), to load the new 500, 2000 Indian rupee notes in the respective motes.
All banks will work on Saturday and Sunday (November 12 & 13).
All banks ATMs will be closed today and tomorrow that is November 9 and November 10 to load all ATMs with the new 500, 2000 Indian rupee notes.
New 500, 2000 currency notes will be brought into circulation from November 10, 2016.
Your daily withdrawal limit is restricted to Rs. 10,000 and the weekly limit to Rs. 20,000. There are no restrictions on internet banking, cash, and demand draft transactions.
Government has announced that the scrapped 500, 1000 currency notes will be valid in Government Hospitals and Pharmacies for the next 72 hours of immediate effect. They will be a legal tender till midnight of November 11, 2016.
You can use your 500 and 1000 rupee notes till November 11 at the following places:
- Government Hospitals and Pharmacies
- Petrol Bunks
- Railway, Airline, and Government Bus Ticket Booking Counters.
- Consumer Co-operative stores of State and Central Government.
- Stat Government authorized Milk Booths
- Crematoriums and Burial Grounds
How to exchange 500, 1000 rupee notes that you have
Starting tomorrow (November 10), you can deposit you 500 and 1000 rupee notes at your nearest banks and post offices till December 30 for which you don’t need to produce any valid id cards unless you need a PAN card for deposits above Rs. 50,000.
There’s no limit or restriction for the deposits. You can deposit as larger the volume is.
If you want to exchange your 500, 1000 currency notes, you can exchange them at banks and post offices till November 24th, however the exchange limit is Rs. 4000 only.
You need to produce Aadhaar card and PAN card to exchange your 500 and 1000 rupee notes.
After December 30, you can deposit your 500 and 1000 rupee notes only at the Reserve Banks with declaration.
Tourists who visit India can exchange the amount at the respective airports.
- Reserve Bank (RBI) Issues New Rs 500, 2000 Currency Notes in India
- A Look back to 1946 and 1978’s Demonetization Measures That Pulled Currency Notes from Circulation