Rs 500 And Rs 1000 Notes Scrapped: Everything You Need To Know!

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In an historic attempt to help keep black money holders’ intentions in check, PM Narendra Modi about an hour ago declared that 500 and 1000 rupee notes will become legally invalid, with effect from midnight November 8th, 2016. This game changing move came as a surprise to the entire nation. Black money, currently one of the biggest problems in the Indian Economy, fuels both corruption and terrorism and the Prime Minister has unleashed a war against both by initiating this historic step. Some things that you undoubtedly need to know about this massive change:

1)      All 500 and 1000 rupee notes will cease to be legal tender from midnight tonight. Therefore, these high denomination notes cannot be used for transaction from November 9th, 2016.

2)      For humanitarian reasons and for convenience of the public, a 72 hour leniency will be exhibited. These notes can be used at chemists, bus stands, fuel stations, government hospitals and railway stations till November 11th, 2016.

3)      The existing notes with the public will be exchangeable within the next 50 days at all banks and all post offices i.e. till December 30th, 2016. If, however, due to some unavoidable reasons, these haven’t been exchanged till then, they are still exchangeable at select special RBI branches up till March 31st, 2017. The exchange can only be done by show of any identity– PAN Card, AADHAR Card or Ration card.

4)      No ATMs or banks will work on November 9th, 2016 to bring this change into effect, since they will need time to incorporate this entirely into their systems. The ATM limit will be Rs. 2000 per card per day which will later on be increased to Rs. 4000.

5)      This doesn’t put any restrictions on cheque payments, online transfers, RTGS or electronic fund transfers. Non cash transactions shall take place without any changes.

6)      For people at the airports, necessary arrangements will be made.

7)      The move will only affect people with illegitimate cash.

8)      The Reserve bank of India is introducing new design currency notes of the denominations ₹500 and ₹2000. The base colour of the ₹2000 note will be magenta. The ₹500 note’s base colour will be stone grey. Both the notes will have the Swacch Bharat logo and the denomination numeral in the Devanagari script.

9)   Special measures have been taken for the visually impaired in the form of raised printing of Mahatma Gandhi’s photo, identity mark and Ashok Pillar emblem on the new ₹500 note as well as the new ₹2000 note.

This massive an attempt to help the poor (since it will have a direct effect on the purchasing power of the poor), will help keep inflation under the scanner, since the circulation of high denomination notes will be reduced. The effort to fight corruption and terrorism has never been this extensive. It’s being called ‘The PM’s masterstroke’ and as being the ‘delivery of the knockout punch’.

According to Sh. Narendra Modi, ‘the secrecy was the essence of this action’, since it really hasn’t left the black money holders with any time to think, forget acting upon it.

For those who are panicking a little, you don’t need to. Your money will remain yours- As long as it’s legal.

And if it’s not, well, game’s over!

About the Author:

Nimrat (Dept. of Economics, PU Campus)

Nimrat
(Dept. of English, PU Campus)

Honest, lighthearted and compassionate. All about happiness and positivity. Overtly enthusiastic about Bullets, badminton and soulful conversations. Prefers humor over boring.

 

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