In a major announcement by our Honorable Prime minister Narendra Modi on Tuesday (8th November 2016), he said that Rs 500 as well as Rs 1,000 denomination notes are being withdrawn from mid-night. He also said that the currency notes of such denomination will become invalid.
However, Mr prime minister also said that all other currency notes & coins like Re1, Rs 2, Rs 5, Rs 10, Rs 20 & Rs 100 will be valid and acceptable at all places.
Why is Rs 500 & Rs 1000 Notes Banned in India ?
Ban is imposed on old currency notes as to fight against corruption, Black money & Terrorism. As of now all these three issues are the major problems in Indian economical growth. With the implementation of ban/invalidation of old 500/1000 denomination notes our government has urged people to help government in its fight against fake currency, black money & corruption.
What to do with Old Notes? Where can i Exchange it? Where can i get new 500/1000 Rs notes?
All old currency notes can be exchanged for new printed ones at your nearest banks, post offices. There are no extra charges for exchanging the the notes. This process will start on 10th November 2016 to 31st December 2016.
Here is what you can do
- Deposit old notes of rs 500 or rs 1000 in bank or post office accounts from 10th November 2016 till 30th December 2016.
- There is no limit for depositing the cash in accounts.
- There will be a limit on withdrawal of Rs 10,000 per day and Rs 20,000 per week. This limit will be increased in coming days.
- Exchange old notes of rs 500 or rs 1000 at any bank, head post office or sub post office.
- A valid government ID proof like pan card or Aadhar card is required for exchanging the notes.
- The limit for exchanging old currency notes is Rs 4000 up to 24th November 2016.
- There is No restriction of any kind of non-cash payments.
- Non-cash payments includes transactions through cheques, demand draft, electronic fund transfer, debit and credit card.
- Banks will remain close on 9th November 2016.
- ATM will remain close on 9th as well as 10th November 2016.
- In first few days there will be a limit of Rs 2000 per day per card.
- Limit will be raised to rs 4000 later.
What are the benifits of this historic step by Mr Narendra Modi
- This historic step will open up new opportunities for poor, neo middle class and middle class people.
- Real Estate prices will be slashed.
- Higher education as well as good healthcare to come within the reach of common citizens.
- Funding for illegal arms smuggling, espionage, terrorists to be choked.
- Circulation of large volume of counterfeit currency to end.
People Friendly Measures to minimize the inconvenince, for extra 72 Hours Old Rs 500 & Rs 1000 Notes will be accepted at:
- For 72 hours, government hospitals will continue to accept old Rs 500and Rs 1000 notes for payments.
- Railway ticket counters, Ticket counters of government buses and airline ticket counters at all airports will accept the old notes for purchase of tickets.
- Petrol, diesel and gas stations authorized by public sector oil companies.
- Consumer co-operative stores authorized by stare as well as central government.
- Milk Booths authorized by state governments.
- Crematoria and burial grounds.
How to exchange old invalid 500 and 1000 rupees notes
Follow the steps to exchange old currency notes of Rs 500 and 1000 rupees:
- Visit your nearest bank with old currency notes of 500 & 1000 rupees.
- Ask the bank cashier for the point of exchange or exchange counter.
- Hand over the old ban notes to the cashier.
- Show your Valid id proof.
- You will receive the new valid notes of desired denominations of Rs 10 to rs 2000.
I Have lots of cash in Lakhs or above. What shall i do ?
Are you worried because you have more cash with you. Don’t worry, as there is a solution for this problem. Now you can deposit all the cash in your own account. You can in-cash the money via atm, or other ways i.e. through cheque etc.
What are the other alternative ways of currency exchange?
There are many available modes of currency exchange like :
- Credit Card Payments
- Debit Card Payments
- Net Banking
- UPI Payments
- E-Wallet Transactions
- Online Payments
- Paytm Payments & Transfers
- Freecharge wallet payments
What are the changes in New Series Notes of Rs 500 / Rs 2000
Major changes and new features In new series bank notes of Rs 500 as well as Rs 2000 are:
- Picture of Delhi’s Red Fort
- Image of the Mangalyaan
- Color of Notes
- Denomination written in hindi.
- Swacch Bharat logo
- NGC Nano GPS Chip
Summary of the important announcement:
- Black money issue, 500 rupees and 1000 rupees banned from Midnight.
- ATM’s wouldn’t work on 9th and 10th November. Rather the withdrawal limit is Rs 2000 only.
- All Residents have option till 30th December 2016, to deposit their existing cash balance of 500 and 1000 rupees in their bank accounts.
- ATM withdrawal is limited post 11th Nov to 10000 per day, but initial few days it would be 2000 Rs. Only.
- Emergency periods like hospitals and chemist, train ticket booking and airline ticket booking, petrol pumps may accept the old notes to 11th November.
- No changes in online, card, cheque or any other plastic money transactions.
- 9th November, banks wouldn’t be available for public banking services.
- New notes of 500 rupees and 2000 rupees would bring in circulation, from 31st March 2017.
- Old notes can be exchanged with RBI till 30th December 2016.
Why RBI is issuing ₹2000 Rupees Notes
The Rs 2000 currency is designed keeping in mind to eradicate the black money issues using state of the art indigenous nano technology, every Rs. 2000 currency note is embedded with a NGC (Nano GPS Chip).
How the embedded NGC Technology Works?
The unique feature of the NGC is it doesn’t need any power source. It only acts as a signal reflector. When a Satellite sends a signal requesting location the NGC reflects back the signal from the location, giving precise location coordinates, and the serial number of the currency back to the satellite, this way every NGC embedded currency can be easily tracked & located even if it is kept 120 meters below ground level. The NGC cant be tampered with or removed without damaging the currency note.
How will this help eradicate black money menace?
Since every NGC embedded currency can be tracked. The satellite can identify the exact amount of money stored at a certain location. If a relatively high concentration of currency is found a certain location for a longer period of time at suspicious locations other than banks & other financial institutions. The information will be passed on to the Income Tax Department for further investigation.
This is Just a beginning of the end of black money in India
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