Historic PM Modi Discontinues Bans Rs. 500 and 1000 Notes

Historic PM Modi Discontinues Bans Rs. 500 and 1000 Notes

In a historical move that will add record strength in the fight against black money and counterfeit notes, the Government of India has decided that the five hundred and one thousand rupee notes will no longer be legal tender from midnight, 8th November 2016.

The Government has accepted the recommendations of the RBI to issue Two thousand rupee notes and new notes of Five hundred rupees will also be placed in circulation.

Notes of one hundred, fifty, twenty, ten, five, two and one rupee will remain legal tender and will remain unaffected by the decision today.

Government of India vide their Notification no. 2652 dated November 8, 2016 have withdrawn the Legal Tender status of ₹ 500 and ₹ 1,000 denominations of banknotes of the Mahatma Gandhi Series issued by the Reserve Bank of India till November 8, 2016.

Starting from November 10, 2016, members of public/corporates, business firms, societies, trusts, etc., holding these notes can tender them at any office of the Reserve Bank or any bank branch and obtain value thereof by credit into their respective bank accounts.

For their immediate cash needs, these notes of value up to ₹ 4,000 per person can be exchanged for cash over the counter of these bank branches.

Public are advised to present a valid proof of identity for availing this exchange facility.

Value credited to their bank accounts can be freely used by issue of cheques or by remitting through various electronic modes of transfer like NEFT, RTGS, IMPS, mobile banking, internet banking etc. Cash withdrawals from bank accounts, over the bank counters, will be restricted to a limited amount of ₹ 10,000 per day subject to an overall limit of ₹ 20,000 a week from November 9, 2016 till end of business on November 24, 2016. The limits will be reviewed after this.

All ATMs and other cash machines will remain shut on November 9, 2016 to facilitate recalibration. When ready, they will be reactivated and cash drawals from ATMs will be restricted to ₹ 2,000 per day per card up to November 18, 2016 and the limits shall be raised to ₹ 4000 per day per card from November 19, 2016.

Any person who is unable to exchange or deposit the specified banknotes in their bank accounts on or before December 30, 2016 shall be given an opportunity to do so at specified offices of the Reserve Bank or such other facility until a later date as may be specified by the Reserve Bank.

PM Narendra Modi in his speech said following from now on, Rs 500 and Rs 1000 notes will not be used. Have 50 days to turn them into banks and post offices.

On November 9 and in some places on November 10, ATMs will not work.

Respite for people for the initial 72 hours, government hospitals will accept old Rs 500 and 1000 notes till 11 November midnight.

Petrol pumps and retail outlets will have to keep every single entry of cash transaction with 500 and 1000 notes till November 11.

Crematoriums and cemeteries will also be allowed to transact 500 and 1000 notes till November 11.

There will be no change in any other form of currency exchange be it cheque, DD, payment via credit or debit cards etc.

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

Notes of Rs 2000 and Rs 500 will be circulated soon, RBI has decided to limit the notes with higher value

Below is the photo of new Rs. 500 and Rs. 2000 currency notes

Photo source - ANI 

Suggested Reading –

Reasons to Ban and Effects of Ban on Currency Notes of Rs. 500 and 1000

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Tuesday, November 8, 2016

Tags – Black Money Rs. 500 Rs.1000 Banned