Rs 500 Rs 1000 Notes Discontinued
- Prime Minister Narendra Modi has made a surprise announcement of discontinuing Rs. 1000 and Rs. 500 denomination notes. These notes will cease to be legal tender from the midnight of November 8, 2016.
Objectives behind discontinuing Rs. 500 and Rs. 1000 notes
- This move has been made to fight against corruption and money laundering
- PM Modi has also touted the move as an anti-terrorism measure, saying that “enemies across the border have run their operations using fake currency notes”
What should you do if you have Rs. 500 and Rs. 1000 Notes
- People holding notes of Rs. 500 and Rs. 1000 can deposit the same (without any limit) in their bank and post office accounts from 10th November 2016 till 30th December 2016.
- Such notes can also be exchanged across the bank counter, head post office or sub post office by showing government-issued ID proof. The limit for this is Rs. 4000/- up to 24th November 2016
- Post 30th December 2016, these notes will be accepted only by the Reserve Bank of India after submitting a declaration
Important Points to be noted
- For initial few days, ATM withdrawals will be restricted to Rs 2000 per day.
- Withdrawals from bank accounts will be limited to Rs 10,000 a day and Rs 20,000 a week
- However government hospitals, Counters for railway, bus and air tickets, petrol stations authorised by public sector oil companies, milk booths, crematoria and burial grounds have been allowed to accept Rs. 500 and Rs. 1000 notes till 11th November 2016
What Next? – The Way Ahead
- Post this announcement, Reserve Bank of India officials have announced in a press briefing that new series notes of Rs 2000 and Rs 500 with more advanced security features will be brought into circulation soon