Surgical Strike on Black Money – Rs 1000 and Rs 500 notes will no longer be legal from Nov 8 midnight
In a major step to check black money, the prime minister announced demonetization of Rs 500 and 100 currency notes with effect from midnight, making these notes invalid in a major assault on black money, fake currency and corruption. In his televised address to the nation, Modi said people holding notes of Rs 500 and Rs 1000 can deposit the same in their bank and post office accounts from November 10 till December 30.
Modi said the notes of Rs 500 and Rs 1000 “will not be legal tender from midnight tonight” and these will be “just worthless piece of paper.” However, he said that all notes in lower denomination of Rs 100, Rs 50, Rs 20, Rs 10, Rs 5, Rs 2 and Re 1 and all coins will continue to be valid.
Also PM Modi said that withdrawal limit will be restricted to Rs 2000 per day and withdrawals from bank accounts will be limited to Rs 10,000 a day and Rs 20,000 a week.
He said the government has been fighting the menace of black money and corruption ever since it assumed power two years ago. He also urged people to help government in its fight against fake currency and black money.
The prime minister expressed confidence that the staff of banks and post offices will rise to the occasion to introduce the new order within the available time. He said he is hopeful that political parties, workers, social organizations and the media will go further than the government in making it a success.
Prime Minister Narendra Modi while addressing the nation said, “We are fighting corruption. (Therefore) old notes of Rupees 500 and Rupees 1000 notes won’t be valid from midnight of tonight. Corruption and black money is something we have fought for immediately after assuming office.
PM Modi also said that new notes of Rs 2000 and Rs 500 will be circulated soon as Reserve Bank of India has decided to limit the notes with higher value. On Wednesday, November 9, all banks will remain closed for public works. Also PM Modi said on November 9 and November 10 at some places, ATMs will not work.
Prime Minister Narendra Modi said that, “There will be no change in any other form of currency exchange be it cheque, DD, payment via credit or debit cards etc”.
Summary of the important announcement :
1. Black money issue, 500 rupees and 1000 rupees banned from Midnight.
2. ATM’s wouldn’t wouldn’t work on 9th and 10th November. Rather the withdrawal limit is Rs. 2000 only.
3. All Residents have option till 30th December 2016, to deposit their existing cash balance of 500 and 1000 rupees in their bank accounts.
4. ATM withdrawal is limited post 11th Nov to 10000 per day, but initial few days it would be 2000 Rs. Only.
5. Emergency periods like hospitals and chemist, train ticket booking and airline ticket booking, petrol pumps may accept the old notes to 11th November.
6. No changes in online, card, cheque or any other plastic money transactions.
7. 9th November, banks wouldn’t be available for public banking services.
8. New notes of 500 rupees and 2000 rupees would bring in circulation, mostly from 31st March 2017.
9. This one is not clear, but old notes can be exchanged with RBI till 31st March 2017. I guess post 30th December.