Government of India Bans Rs. 500 & 1000 Rs Notes in India Rs 500, Rs 1000 to be illegal starting midnight in India Narendra Modi, Economy, News
Government Discontinues The Uses Of Rs 500 And Rs 1000 Notes
News has being circulating about Rs 500 and Rs 1000 notes and its ends of its usage. Our Prime Minister Narendra Modi has took a serious decision in eliminating the black currency in India. As a part of it there was a new plan being implemented by the Government of India.
Narendra Modi has now announced a statement saying that from today midnight that is 9th November 2016 on wards there will be an end for Rs 500 and Rs 1000 notes completely. It is clearly mention that Rs 500 Rs 1000 notes must be deposited at post office of banks by the end of December 31st 2016.
The main motto of doing this is to eliminate black money India. In this two years of continuous struggle from the government aiming in the last two-and-half years, India has made its presence felt in the global economy.
This decision is considered to be one of the biggest decision by Narendra Modi. Which completely aimed in stopping the circulation of illegal currency in the country. Since this has become a part of the Bharatiya Janata Party’s poll manifesto in 2014.
One of the main reason behind this new circular is seriously intended in issues of shares. Indian government has focused on empowerment of the poor people. The income tax department has also been collating data on property deals, a source of rampant black money transactions.
To eliminate corruption and black currency completely from India and get rid of it. It is found that 1.2 lakh crore of black money has been recovered during by the government in recent days. And the government took the responsibility in eliminating black money and corruption.
Sab ka sarkaar, sab ka vikas which means that the governance and progress for all is our motto. The government is strictly focused on empowerment of the poor.
It is officially announced that on November 9th and in some places on November 10th the ATM will not be working due to this issue of eliminating Rs 500 and Rs 1000 notes completely. 72 hours from November 8 midnight the government hospitals and pharmacies will accept these notes and after 72 hours they will not accept them.
There will be no restrictions on internet banking, cash, demand draft transactions. From ATM’s a maximum of Rs 10,000 can be withdrawal and Rs 20,000 weekly cash withdrawal limit is announced. They are some some exemptions for Government hospitals and international airports.
Rs 500 Rs 1000 can be exchanged in the banks and head post offices and sub post office within December 30, 2016, by providing a valid identity proof such as Aadhaar, PAN card or voter ID card. Mr. Modi mentioned various schemes which are launched by NDA government.
Modi said the government was taking this step due to the threat of fake currency and black money being used to fund terrorism.
About 64,275 people revealed assets under the IDS, which allowed people to legitimize concealed income by paying 45% tax. All the 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 through out India.
- Starting midnight on November 8, Rs 500 and Rs 1,000 notes will no longer be legal tender.
- Other currency notes – Rs 100, Rs 50, Rs 20 and Rs 10 – are still valid, as are all coins.
- All cashless transactions, such as cheques, cards and demand drafts, will continue as usual.
- ATMs across the country will be closed on November 9, and they will not function in parts of the country on November 10.
- For the first few days after ATMs start working, there will be a withdrawal limit of Rs 2,000 per card. This will be raised to Rs 4,000 later.
- Banks will remain closed on November 9.
Cases of exceptions
There are few exceptional cases in which Rs 500 and Rs 1,000 notes will be accepted. And there is an exception only till midnight on November 11 in public interest.
The exceptional cases are:
- Government pharmacies
- Government bus stations and railway ticket counters
- Crematoria and burial grounds will also be allowed to transact 500 and 1000 notes till November 11.
- Milk booths
- Consumer co-operative stores authorized by state or central government.
- Petrol, diesel and CNG stations
- booking of air tickets and hospitals
New notes of Rs 2,000 and Rs 500 will be circulated soon. And Modi has announced that these notes will have limited circulation all over India. The new Rs 2000 notes are designed by using the state of the art indigenous nano technology keeping eradication of black money in mind. Every Rs 2000 currency note is embedded with a Nano GPS Chip (NGC).
The RBI has increased the production and they are continuously trying to provide new currency notes as soon as possible for the people all over the state.
About the past economy of Rs 500 and Rs 1000 notes
It was found that between 2011 to 2016, the circulation of Rs. 500 notes has been raised to a very great extend. And the rate of increase of the usage of the note is up to 76% and similarly the usage of Rs. 1000 has been increased to 109%.
During 2012-13, the detection of these notes in the denomination of 1000 increased by 18.2 percent. And when coming to the detection of Rs 500 and Rs 100 notes have been eventually decreased by 6.8 percent and 12.3 percent, respectively for both the notes as per evaluated by the economy of India, in comparison with the previous year.
This is considered to be a serious issue and has an immense impact on Indian economy.Even though all these changes have took place but the economy has only expanded by 30%. So it is very illegal to exchange cash even after there this. So get exchange your Rs 500 and Rs 1000 notes and get ready to use new currency notes.
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