In what could be said the most interesting and shocking news of the day, the Prime Minister of the country Mr. Narendra Modi has declared 500 and 1000 rupees notes illegal in the country w.e.f midnight tonight.
In a live address, Modi said 1.25 lakh crores of black money has been recovered in the NDA rule till now.
So why have 500 and 1000 rupees notes been declared illegal?
In what is being seen as a method to curb black money and also fight terrorism this much needed solid step has been taken. This demand was being made by financial advisers of the RBI since long.
So what do I do to my 500 and 1000 notes?
From now on, Rs. 500 and Rs. 1000 notes will not be used. You have 50 days to turn them into banks and head post offices.
But for the initial week, you can only change 4,000 notes in a day which would be doubled to 8,000 notes 15 days later. Also, your ATM withdrawals will be limited to Rs. 2,000 a day for a few days.
Anything else I should know?
On November 9 and in some places on November 10, ATMs will not work. Banks will also be closed for public functions.
Also to avoid inconvenience to people, for the initial 72 hours, government hospitals will accept old Rs. 500 and 1000 notes till 11 November midnight.
Petrol pumps and retail outlets will also have to keep every single entry of cash transaction with 500 and 1000 notes till November 11.
Crematoriums and cemeteries will also be allowed to transact 500 and 1000 notes till November 11.
One must also note that there will be no change in any other form of currency exchange be it cheque, DD, payment via credit or debit cards etc.
What if I can’t deposit my notes in the specified time period?
If you are unable to deposit Rs. 1000, Rs. 500 notes by December 30 for some reason you can change them till March 31, 2017 by furnishing ID proof and making a declaration of the same to the RBI.
So does this mean now we only use 100 rupee notes?
No. Thankfully, notes of Rs. 2000 and Rs. 500 will be circulated soon, RBI has decided to limit the notes with higher value. However, it is expected that these new notes would be plastic currency as it is difficult and extremely expensive to forge.
Cool. But why was this announcement made suddenly?
Because the government wants to crackdown on fake currency producers on a massive scale. Making an announcement suddenly allowed the government to not let these forgers get away by bringing in the forged currency into circulation. A sudden announcement equals huge losses to these people and also to various terror outfits which can be said to be a huge victory for the country!
We’ll keep you posted on more developments!
– By Mrinaal Datt
Read more about her here