Prime Minister Narendra Modi announced today about the demonetization of Rs 500 and 1000 currency notes with effect from midnight of Wednesday, November 9,2016. The move is aimed to clamp down on rampant corruption and circulation of black money.
Here is what you need to know:
- People can deposit currently used notes of Rs 500 and Rs 1000 in post office accounts or banks between November 10 and December 30, 2016. There will be no limit on the deposit amounts.
- People can exchange old notes of Rs 500 and Rs 1000 at any bank, head post office or sub post office by showing ID proofs like Aadhar card, PAN card or voters ID card. The limit for this transaction is Rs 4000 up to November 24.
- ATMs will not be operational on 9th and 10th November. Banks and post offices will also be closed on November 9, 2016.
- From November 11 onwards, there will be a limit of Rs. 2000 on cash withdrawals from ATMs. This limit will be raised to Rs. 4000 after few days and ultimately, the limit will be fixed at Rs. 10,000 per day and Rs. 20,000 per week.
- Government hospitals, public-sector run petrol pumps, and burial grounds will continue to accept Rs. 500 and Rs. 1000 notes till November 11. Even airline and railway bookings will be able to accept these notes till midnight of November 11.
- Post December 30 2016, the notes can be exchanged only with the RBI after making a declaration.
- RBI will start full circulation of new notes of denomination Rs. 500 and Rs. 2000, tentatively from next financial year. This will ensure that the number of these notes is kept to a lower value, so that black money cannot be stashed as cash.
The Logical Indian welcomes this bold initiative by the government to tackle the menace of black money and corruption, which, as PM Modi highlighted, fans inflation and terror activities in the country. We urge people to follow government guidelines to dispose of their Rs. 500 and Rs. 1000 notes within the stipulated time.