Only a few could’ve seen this coming: Indian Prime Minister Narendra Modi announced the government’s decision to scrap ₹500 and ₹1000 currency notes late in the evening on Tuesday. A few first took it to be yet another internet hoax and terrible constructed WhatsApp forwards before they realised that this actually happening for real.
By the move that came into effect by midnight on 9th November, ₹1000 and ₹500 notes will not be legit money and are invalid for any transactions. The move is to bring out the black money, thereby striking a killer blow to corruption and corrupt crorepatis.
Modi, in what was his first televised address to the nation, informed that citizens can deposit the currency notes in their bank and post office accounts starting from November 10 till December 30.
Once the process is completed, new ₹500 notes will be granted to the citizens alongside the new launch – ₹2,000 notes. The move that is seen as a historic event in Indian history, if really processed in the right manner, will give exceptional rewards in improving the economy of the country, experts say.
Points to be aware of
– All ATMs will remain closed on November 9 and 10.
– Banks have declared holiday on November 9.
– People can deposit ₹500, ₹1000 notes at their nearest banks, post office starting from November 10. The limit for this is ₹4,000 upto 24th November.
– People can get their equivalent money by showing an ID proof.
– Those unable to deposit ₹1000, ₹500 notes by December 30 for some reason, can change them till March 31, 2017 by furnishing ID proof.
– For 72 hours, Government hospitals will continue to accept old ₹500, ₹1000 notes.
– For 72 hours, citizens can spend their ₹500 and ₹1000 notes for railway tickets, travel in government buses and airlines.
– For 72 hours, petrol, diesel and gas stations under public sector oil companies are authorised to accept these currencies.
– Co-operative stores authorised by State, Central Governments and milk booths authorised by state governments, and burial grounds will accept the same.
– Withdrawal limit at the banks will be ₹10,000 per day and ₹20,000 per week between November 10-December 30.
– All payments by checks, demand drafts, debit or credit cards and electronic fund transfers can be exercised without any restriction.
– Once the ATMs are active on November 11, there’ll be a withdrawal limit of ₹2,000 per day per card and ₹4,000 later on.
– Personal visit to the branch is preferable. In case it is not possible for you to visit the branch, you may send your representative with an express mandate, i.e. a written authorisation. The representative should produce authority letter and his/her valid identity proof while tendering the notes.
Multiple reasons are being said and the utmost priority is to curb the manace of black money.
– “Enemies from across the border run their operations using fake currency notes,” as in the words of Modi.
– “There comes a time in the history of a country’s development when a need is felt for a strong and decisive step. For years, this country has felt that corruption, black money and terrorism are festering sores, holding us back in the race towards development.”
Panic from citizens
The move sparked off a rage from various sections of the nation and the working force that wanted to have a few hundreds in their wallet. This resulted in a lot of crowded ATM centres and the fuel stations refused to accept money in some areas, resulting in a few road protests in the late hours of Tuesday.
Requesting support from the people at this time, Modi called for fight against corruption and black money.
The above image shows the new ₹500 and ₹2000 currencies.
Read Narendra Modi’s complete speech in text: http://www.narendramodi.in/text-of-prime-minister-s-address-to-the-nation-533024
Further information is available on RBI website (www.rbi.org.in) and the website of the finance ministry (www.finmin.nic.in). Contact the control room of RBI on the telephone: 022 22602201/022 22602944.