PM modi banned Rs 500 and Rs 1000 currency notes and here is what to know all about it

November 8, 2016

Rs 500 and 1000 currency notes to be banned

500 and 1000 RS currency note officially will be banned from mid night 8th November 2016. One of the most dynamic announcement by PM. However present currency can be deposited in banks and post office from 10th November to 31 December 2016

~Prime Minister Narendra Modi

Social media has flooded with such messages and perhaps you also got such message on whatsapp; after PM Narendra Modi said in his 40 mins of address to the nation.

Here is what we have to know all about it:

Why banning such currency notes ?

The move was announced in a sudden address at 8 pm that was televised across all news channels when the frenzy was otherwise with the US presidential polls.


The demonetisation of Rs 1,000 and Rs 500 notes is a major assault on black money hoarders, fake currency, and corruption.


In his 40-minute address, first in Hindi and later in English, the Prime Minister said the notes of Rs 500 and RsĀ 1,000 “will not be legal tender from midnight tonight” and these will be “just worthless piece of paper.”


However, he said that all notes in lower denomination of Rs 100, Rs 50, Rs 20, Rs 10, Rs 5, Rs 2 and Re 1 and all coins will continue to be valid.


He also announced that new notes of Rs 2000 and Rs 500 will be introduced.


ATM withdrawals will be restricted to Rs 2,000 per day and withdrawals from bank accounts will be limited to Rs 10,000 a day and Rs 20,000 a week.


Banks will remain closed on Thursday and ATMs will also not function tomorrow and day after, Modi said.


He expressed confidence that the staff of banks and post offices will rise to the occasion to introduce the new order within the available time.


He also expressed confidence that political parties, workers, social organisations and the media will go further
than the government in making it a success.


The prime minister saidĀ that black money and corruption have not only been affecting the Indian economy but has also helped finance terror activities been helping finance terrorist activities, and the new rule will help bring down both.


Modi, however, clarified that the citizens will be able to deposit old currency notes of Rs 500 and Rs 1,000 at post offices and banks of their choice.


“The public will have 50 days time between 10 November and 30 December to deposit old notes of Rs 500 and Rs 1,000 after showing a proof of identity,” he said. The accepted POI documents include Pan Card, Aadhaar Card, Voters ID Card, Driver’s License and Passport.


The exchange of old notes, however, will be limited to Rs 2,000 between 10 and 24 November, and it will be increased up to Rs 4,000 between 25 November to 30 December.


However, government hospitals, pharmacies in government hospitals, airline ticket counters, bus ticket counters, railway ticket counters and petrol pumps will accept old notes for the next 72 hours, ie, till midnight 11 November.


Besides depositing money in bank accounts, the Rs 500 and Rs 1,000 currency notes can also be exchanged with lower denomination currency notes at designated banks and post offices on production of va id government identity cards like PAN, Aadhaar and Election Card from 10 to 24 November with a daily limit of Rs 4000.


Those unable to deposit Rs 1,000 and Rs 500 notes till December 30 this year can do so in designated RBI offices till 31 March next year after filling a declaration form along with proof and reasons, the Prime Minister said.


Rs 500 and Rs 1,000 notes will be valid for transactions related to booking of air tickets, railway bookings,
government bus ticket counters and hospitals till the midnight of 11 and 12 November


Here’s what you can do with your Rs 500, Rs 1000 currency notes:

1) Deposit old notes of Rs 500 and 1000 in banks or post offices between November 10 and December 30, 2016.
2) Those who are unable to, can exchange notes till March 31, 2017 at specified RBI offices after furnishing proper declaration.
3) There will be an initial limit of Rs 10,000 per day and Rs 20,000 per week on withdrawal of money. This limit is to be increased soon.
4) Exchange of old notes for cash upto a limit of Rs 4000 possible at any bank or post office by producing valid ID proof.
5) Rs 500, Rs 1000 notes will be accepted at hospitals, drug stores till Nov 12.
6) Arrangements have been made at airports so that travellers entering/leaving the country are not inconvenienced.
7) The notes can also be used at designated fuelling stations till Nov 12.
8) Petrol pumps and retail outlets will have to keep every single entry of cash transaction with Rs 500 and 1000 notes till November 11.
9) ATMs will not function on Nov 09 and at some places on Nov 10 as well.
10) No restriction on non-cash payments including transactions by cheques, demand drafts, electronic fund transfers, debit and credit cards.

Modi band Rs 500 and Rs 1000 currency notes

Source of Information: Times of India