Prime Minister Narendra Modi Banned Rs.500 and Rs.1000 Indian Rupees

Banned Rs.500 & Rs.1000

The Reserve Bank of India said the most important reason for the ban was the abnormal rise in fake currencies of higher denomination, and also the higher incidence of black money in the system, but assured the public that a person who changed his higher value cash will get exactly the equal amount in lower denominations.

Demonetisation of Rs.500 and Rs. 1000: Who says what....

The government's decision to declare Rs. 500 and Rs. 1000 rupee notes has evoked positive response from economists and industrialists. The decision to scrap Rs. 500 and Rs. 1,000 notes is very good to combat black money, said Justice (Retd) M.B. Shah, Chairman of SIT on blackmoney. Those holding untaxed assets, income despite opportunity to declare will suffer, he added.

• SBI chairman Arundhati Bhattacharya said that tomorrow banks will be closed for withdrawing these notes from counters & ATMs. We will work round the clock to ensure that customers have a smooth experience .
• President Pranab Mukherjee called upon people not to panic and follow Govt guidelines for exchange of Rs 1000/500 notes. He welcomed bold step of Government of India which will help unearth unaccounted money & counterfeit currency
• Terror strikes at the innocent. Who funds these terrorists? Across the border, our enemy uses fake currency and dodgy funds to sponsor terror – this has been proven repeatedly. Corruption and black money are diseases rooted in this country, they are obstacles to our success.
• "There is a need for a decisive war against the menace of corruption, black money and terrorism... Corruption, black money and terrorism are festering wounds which make the country hollow from within," he said, adding such activities hold back the nation's progress.
• Without naming Pakistan, the Prime Minister made a pointed reference to cross-border terror which was being funded by forged currency notes. “In the country’s history of development, there comes a moment where powerful and decisive decisions are needed,” Mr. Modi said.
• Once the ATMs start functioning, there will be a withdrawal limit of Rs. 2,000 per debit card, which will be increased to Rs. 4,000 later, Mr. Modi said in a 40-minute televised address to the nation. There will, however, be an overall limit on withdrawal from banks of Rs. 10,000 per day and Rs. 20,000 per week, which will be increased in the coming days.

What is this scheme?

The legal tender character of the notes in denominations of Rs 500 and Rs1000 stands withdrawn . In consequence thereof withdrawn old high denomination (OHD) notes cannot be used for transacting business and/or store of value for future usage. The OHD notes can be exchanged for value at any of the 19 offices of the Reserve Bank of India or at any of the bank branches or at any Head Post Office or Sub-Post Office..

The importance of the scheme Abot the Band Notes:

• the RBI said the legal tender character of the notes in denominations of Rs 500 and Rs 1,000 stands withdrawn. In consequence, the withdrawn old high denomination notes cannot be used for transacting business and/or store of value for future usage.The old notes can be exchanged for value at any of the 19 offices of the Reserve Bank, any of the bank branches or at any head post offices or sub-post offices.
• A person with no personal account of her own can avail of this exchange facility via a relative/friend's account with written permission. But while exchanging, one should provide the evidence of permission given by the account holder and own valid identity proof.
• Even cash withdrawal through cheque/withdrawal slips is subject to a ceiling of Rs 10,000 in a day within an overall limit of Rs 20,000 in a week (including withdrawals from ATMs) for the first fortnight-up to 24 November.
• Higher value notes can be deposited/withdrawn through ATMs, cash deposit machines and cash recyclers. But electronic transactions (NEFT/RTGS/IMPS/ online banking/mobile banking etc) can be done with no limits.
• The scheme closes on 30 December, 2016 until then one can exchange the banned notes at the branches of commercial banks, regional rural banks, urban cooperative banks, state cooperative banks and special RBI counters. And those who failed to do will be offered a limited opportunity at specified offices of the RBI, along with necessary documentation as may be specified by the central bank.
• Those who are outside the country can get their exchanges done by authorising in writing another person in the country to deposit the notes into your bank account with the authority letter and identity proof such as Aadhaar card, driving licence, voter ID card, passport, NREGA card, PAN card etc.In case of emergencies like hospitalisation, travel, life saving drugs, one can use the old notes to pay for hospitalisation at government hospitals, to purchase bus tickets at government bus stands for travel by state or state PSU buses, train tickets and air tickets within 72 hrs after the notification.

What you Can Do With Old Rs.500, Rs.1000 Currency Notes???

1. Exchange Rs500, Rs 1,000 Notes Showing ID Proof Exchange Rs500, Rs 1,000 Notes Showing ID Proof.
2. Deposite Old Rs500, Rs 1,000 Notes in Banks, Post Offices Accounts.
3. Can Exchange notes between November 10 and December 30
4. No Restriction On Card Payment, Cheque, DD, Electronic Funds Transfer.
5. Rs. 10,000 withdeawal per day, Rs 20,000 withdrawal per week.

Indian Announces 2000 Rupee Note Circulation

• Currency notes of Rs 500 and Rs 1000 denominations will not be legal beginning November 9
• New notes of Rs 500 and Rs 2,000 would be released and circulated from November 10
• People can deposit notes of Rs 1000 and Rs 500 in their banks from November 10 till December 30, 2016
• ATMs will not work on November 9, and at some places on November 10 as well
Those unable to deposit Rs 1000, Rs 500 notes by December 30 for some reason, can change them till March 31, 2017 by furnishing ID proof
• Rs 20,000 weekly cap on exchange of Rs 500 & Rs 1,000 notes
• We are among fastest-growing economies, but we also rank so high in global corruption rankings.
• When you elected this government in 2014, world was talking about India being shaky economically. But India is now an economic star – this is what IMF and World Bank are saying.

What do Industry veterans have to say after PM Modi’s demonetization move?

Currencies, inflation, deflation, payments and banking is a very interesting subject for me and I have read a lot of books on this topic. This is just my opinion, but I am bold enough to share this in the public domain. However, I may be wrong. Let's see how this pans out. Today is an iconic day in India's journey. History in the making. Nov 8th 2016! This would be a day to remember.

Can I get all in cash?

No. You will get upto Rs 4000 per person in cash irrespective of the size of tender and anything over and above that will be receivable by way of credit to bank account.