Prime Minister bans 500 and 1000 notes starting 8 November midnight

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By the time you are reading this news, RS 500 and 1000 notes currency notes are already void in the Indian market.

Prime Minister shocked the nation by announcing that Rs 500 and 1000 notes will be banned starting 8 November midnight. It is without a doubt the boldest step Narendra Modi government has taken till date. From midnight Rs 500 and 1000 note will just be a simple piece of paper with no value. The government has taken this big decision to curb black money and to counter the issue of fake currency.

However, all petrol pumps and CNG gas stations will accept old notes of 500 and 1000 until 11 November midnight. Government hospitals and international airports will accept these notes for the next 72 hours.

Noncash transactions will not be affected by this rule.

This decision was taken to maintain the economic growth of the country.

What will happen to the existing notes of 500 and 1000?

Don’t worry if you have old 500 and 1000 notes already. The government has given 50 days time to submit old notes in bank and post office. You can deposit your 500 and 1000 notes in your bank account or post office by 30 December 2016. It will be added to your account and you will not lose any of your money. You can return the notes by showing your valid ID proof like Adhaar card, Pan cards or voter ID cards.

There is a limit of the amount of money you can deposit in bank daily. You can deposit a maximum of Rs 4000 daily in the bank account or post office.

For those who are not able to return the notes to bank or post office by 30th November, will be given a final chance by the government. They can change the notes in banks by 31st March 2017 by showing ID proof.

ATM’S will remain close for 2 days

ATM’S will remain close on 9th and 10th November. After the new notes are issued, the initially withdrawn limit will be Rs 2000 per day. It will be increased slowly.

Also, the cash withdrawn limit from the bank will be Rs 10,000 per day and RS 20,000 per week for a short period of time. It will be increased later.

Banks will remain closed on 9th November 2016.

INDIA TO GET NEW NOTES OF Rs 500 and Rs 2000 from 10th November

Reserve Bank will release new currency notes of Rs 500 and Rs 1000 from 10th November. RBI showed the specimen copy of new notes in a live press conference.

The government had maintained full secrecy about the decision. Even the banks were not aware of the decision. This move has destroyed the fake money racket in the country entirely.

Why was this decision taken?

The government had considered all the pros and ex-cons of the decisions. The main reason behind the decision is to curb the black money. Also, it will shut down the market of fake currency completely. Drugs Racket, Hawala and terror funding networks will also be adversely affected by this decision.

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