India Has Banned Rs.500 and Rs.1000 Currency Notes Effective Midnight Today

9:08 pm 8 Nov, 2016


The Narendra Modi led government at the Centre has imposed an immediate ban on currency notes of Rs.500 and Rs.1000 denominations effective midnight of November 8.

The surprise decision was announced by the Prime Minister himself in an address to the country. While he praised India’s economic growth, the Prime Minister dropped a bomb by announcing a ban on the currency notes.

 

Modi

 

Modi declared that the currency notes of the said denominations shall not be used anymore.

Here are the finer details:

  • Those having the currency notes of old Rs.500 and Rs.1000 denominations can exchange or deposit the notes for lower denominations at post offices and banks.
  • Exchanges are valid till December 31 but upto Rs.4000.
  • A time frame from November 10 to December 30 has been set to deposit the money in the financial institutions.
  • Banks will remain closed for the public on November 9.
  • All ATMs will remain closed on November 9 and 10.
  • To avoid panic and rush, the PM announced that government hospitals, petrol stations, crematoriums, milk booths, and railway/airline/bus counters will accept the notes of the said denominations till midnight November 11.
  • And those unable to exchange or deposit the currencies by the deadline date of December 30 will be able to do so at a later date set by the RBI and at RBI offices after furnishing necessary documentation.
 

But do not worry. The Rs.500 denomination is not going anywhere. The RBI will  soon be issuing new Rs.500 currency notes.

 


There will be no new Rs.1000 notes. RBI will be issuing notes of Rs.2000 denomination for the first time ever.

 


PM Modi also called for the cooperation of the people and said that he understands the difficulty citizens of the country will be having for some time due to this otherwise necessary move.

 


The decision has been taken to block the flow of black money and to counter the huge fake currency racket being run from across the border in Pakistan.

 

Following the PM’s speech, RBI Governor Urijit Patel addressed the media and pointed at the fake currency notes problem.

 


He added that the RBI has stepped on the gas to increase the issue of new currency notes as soon as possible.

Praise for the government’s decision to curb black money is coming from across quarters.

 

 


Social media is hailing this as a surgical strike by the government because of the shroud of secrecy the decision was covered in. It is indeed commendable that the government succeeded in keeping this decision under wraps because a leak could have helped those having black money.

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