Rs.500 and Rs.1000 notes rendered illegal: PM Modi’s surprising announcement

New Delhi: The whole nation was blind-struck by Prime Minister Modi’s announcement to demonetize the 500 and 1000 rupees notes from midnight. To curb the issues of black money, corruption, terrorism as well as counterfeit currency, such a bold move was necessary to be taken, stated the Prime Minister.

PM_ModiOn the other hand, to avoid the blow of this decision to the honest citizens of India, measures such as allowing deposition of 500 and 1000 rupee notes in the banks and post offices till 30th December, are undertaken by the Government.

The current black money market in the country majorly uses high denomination Rs.500 and Rs.1000 notes . The black money and corruption are crippling the country from within and its impact has to be borne by the poor and honest population. These problems lead to artificial price hikes and have a direct proportion to inflation. It also has a negative effect on the purchasing power of the citizens. Hence, this stern action had to be taken stated the Prime Minister. PM Modi expressed belief that the honest citizens of this country will bear the hardships arising out of this step; however, will definitely support the Government. The Prime Minister further said that this decision had to be kept secretive; hence banks and post offices were not notified earlier about it. They have also received this information just now, so they will require some time to start receiving the 500 and 1000 rupee notes, stated the Prime Minister.

To ensure the easy cash flow of Rs.100/- notes, banks will remain closed on 9th November and also at some places, ATMs will be shut till 10th November.

The bank transactions will be closed on 9th November. From 10th November up till 30th December, 2016, notes of Rs.500 and Rs.1000 can be deposited in banks and post offices. Also, the withdrawal from ATM is limited up to Rs.2000/- per day. The limit of withdrawal from the bank is extended up to Rs.10,000/- per day. However, the withdrawal is limited to Rs.20,000/- per week. In future, this limit will be extended, promised the Prime Minister. It is also made compulsory to carry an identification proof like Aadhar Card, Voting card and PAN card for exchanging the old currency. Nonetheless, the Prime Minister promised of no disturbances in the cheque, debit card, credit card as well as e-banking transactions. Even the transactions in coins of and 5, 10, 20,100 rupees notes will continue normally, assured the Prime Minister.

To minimize the inconvenience to the general population, several exceptions are introduced. These include the acceptance of 500 and 1000 rupees notes in Government hospitals. Also, these notes can be used to buy tickets while travelling.

New Notes of 2000 and 500 Rupees to be  Introduced

500-noteThe Reserve Bank of India had proposed the introduction of new notes of Rs.5000 and Rs.10000 to the Central Government. But the Central Government has rejected this proposal. The Prime Minister announced that within near future, new notes of Rs.500 and Rs.2000 will be introduced in the market. The utmost importance is that the Reserve Bank will keep a strict check on the number of new notes in circulation. Reserve bank will not issue a large denomination of these notes, stated the Prime Minister.

In the near past, the news of Rs.2000 notes coming up in the market was floating across. Nevertheless, the news of demonetization of 500 and 1000 rupees notes was kept under the wraps by the Central Government.