Government has banned all the Rs 500/- and Rs 1000/- notes!
What all you need to know about this ban?
How the ban is going to affect you?
How you can save yourself from all the inconveniences?
What the government is trying to achieve with this ban?
Is Ban going to help the country or it is just an election gimmick?
Read the article now to find the answers.
10 Highlights of PM Modi’s Ban on Rs 500/- and Rs 1000/- Notes
An announcement was made on Monday that Prime Minister Narendra Modi will address the nation on Tuesday at 8 PM.
The address was really unplanned and unscheduled therefore the entire Media and the country was taken by surprise over the PM’s address to the nation.
Here are the quick highlights of the PM Modi’s address on Tuesday.
1. All the currency notes of Rs 500/- and Rs 1000/- will be discontinued or banned or won’t be valid after the Midnight of 8th Nov. PM said “Currency notes of Rs 1000 and Rs 500 will be just paper with no value,”
2. A series of New Notes with Rs 500/- and Rs 2000/- denomination will be circulated soon. RBI has decided to limit the notes with higher values. There will be new Rs 2000/- in the market soon.
3. All the other notes with Rs 10, Rs 20, Rs 50 and Rs 100 denominations will not be affected.
4. From the Midnight of 8th Nov (from 9th Nov) and 10th Nov, many of the ATMs around the country will NOT work.
5. All Your Rs 500/- and Rs 1000/- notes in your home can be converted through banks from November 10 to December 30. Hence there are 50 days to deposit all Rs 500/- and Rs 1000/- notes in banks and post offices.
6. The rate with which old notes can be converted through banks is Rs 10,000/- per day and Rs 20,000/- per week. Limit on ATM withdrawal will be Rs 2000/- in a single day.
7. People possessing Rs 500/- and Rs 1000/- notes after December 30 can exchange it at the Reserve Bank of India by furnishing the ID proof.
8. On the Nov 9 all the banks will remain closed for all the public work.
9. There are no restrictions on Internet banking, cash and demand draft transactions.
10. PM said at least Rs 1.25 Lakh Crore worth of black money had been recovered during the last two and half years.
So these were 10 important things that you need to know about the PM’s address on Tuesday.
Why Government Has Decided to Ban Rs 500/- and Rs 1000/- Notes
Now as a common man you might be surprised to know what prompted PM Modi to suddenly ban Rs 500/- and Rs 1000/- notes.
Well here are some of the reasons explained by PM Modi himself.
The major reason for the ban is to fight corruption and give a massive blow to all black money, fake currency and other forms of corruption. In fact some are saying this is a surgical strike on black money.
The second major reason for the ban is fighting terrorism. He said “where do these terrorists get money from” So it will be difficult for terrorists to finance an act of terror.
Third reason is Pakistan is sending counterfeit notes from across the border to hit our economy. Hence the ban will stop that.
The aim is to reduce all the illicit money floating around the country. The ban will hit all the corrupt people and save law abiding poor citizens.
Currently India is ranked 76 in corruption index, due to this ban it will reduce corruption and help investors to invest in India.
All the corrupt politicians, builders, money launderers will go out of business.
Until now government has recovered Rs 1.25 Lakhs crore worth of black money and it is expected to recover even more in coming days.
So these were few reasons behind this ban.
People Friendly Measures Taken by the Government to Minimize Inconvenience
After reading the last paragraph you might be thinking the ban is really great for the country but how is it going to affect common man like you and me.
Well the government has taken people friendly measures to avoid or minimize any inconvenience. Here are some of the measures taken.
1. There is no need to panic because all your money is safe. You can deposit all your Rs 500/- and Rs 1000/- notes in the bank till Dec 30.
2. If you can’t deposit the money until Dec 30 for some reason then you are allowed to deposit even after Dec 30 by furnishing ID proofs like Voter ID, Driving License etc.
3. There is no change in other forms of currency exchange like Cheque, Demand Draft, Payment via credit card or Debit card.
4. For short time period, Hospitals will take Rs 500/- and Rs 1000/- notes for next 72 hours.
5. Petrol pumps, CNG gas stations and retail outlets will accept the notes till 11th Nov midnight.
6. Even railway stations, airports, fuel stations, crematoriums and even milk booths run by govt. will accept notes till 11th Nov midnight.
Hence you can figure out the ban is hardly going to affect ordinary people in the long run. However there might be some inconveniences for next few days.
Will the Ban Really Help the Economy? Or It is Just a Gimmick
As a concerned citizen you might be asking is the ban going to reduce corruption or it is just an election gimmick.
Let us try to look other side of the picture also.
First of all, this is not the first time when the government has banned the notes. In 1978 notes were discontinued.
The dream of cashless economy can’t be realized because digital products are limited to very small urban population and the financial market still don’t cover the majority of Indian citizens.
Moreover the ban will stretch the capabilities of the financial system which does not extend across the country.
It will depend upon authorities to make it easy to deposit the money during 50 days period.
During the interim period of 50 days you will see many attempts by the people with black money trying to convert their illicit cash into legal money. So how the government is going to plug this loophole?
Finally it may be an election gimmick ahead of elections in UP and Punjab.
Some are saying the new Rs 2000/- note will have Magalyan Mars Mission printed on it instead of Gandhi’s picture. Is the image on new note has a political message for the people of this country?
So this is all you need to know about the Rs 500/- and Rs 1000/- ban.