Narendra Modi Led Central Government Scraps 500 and 1000 Rupees Notes.

Narendra Modi, the Indian Prime Minister on Tuesday, announced the scrapping of Rs 500 and Rs 1000 notes. The notes will become obsolete from Tuesday midnight and from 9th November, their value will be equal to the value of the paper they are made of.

This astonishing step was taken in the wake of the recent increase in black money. Earlier, the Modi Government gave an ultimatum to the people holding black money to disclose their hidden income by 30 September.

The proposal of issuing new 500 and 2000 rupees notes has also been cleared by the Reserve Bank of India. RBI Officials stated that the Indian economy has increased by 30% since 2012 and the 1000 rupees notes were not enough to satisfy the demand of Indian currency in the domestic market. They also said that the demand for 1000 rupees notes increased drastically in the same period.

The size of the new notes will be smaller than the old ones and there will be no change in any other mode of transaction such as cheques, DDs, credit or debit cards etc.

Here is what everybody should do with 500 and 1000 rupees notes:

You have to deposit all the 500 and 1000 rupees notes in your bank account and the Government has issued a deposit limit of Rs4000 per day till 25 November and the limit will increase after that and the process will go on until 30th December.

There is an option to exchange these notes with the new ones from banks and the same can be done in Post Offices.

You will need to carry your Aadhaar Card and PAN(Permanent Account Number) while depositing the old currency notes and the depositors will also be under the surveillance of CCTV.

If someone is unable to deposit these currency notes till 30th December, he can go and deposit them at RBI headquarters with the above-mentioned identity proofs. He will also have to submit a declaration form citing the reason for not depositing the currency till 30th December.

The process will start from 10th November as all the banks and ATMs will stay closed on 9th November. However, all the petrol pumps and hospitals will accept the notes until 11th November.

ATM withdrawal limit is also restricted to Rs2000 for some days.

08 November 2016
Rohan Jaitly