- Banks to remain closed on November 9
- New Notes of Rs. 500 and Rs. 2,000 to be issued from November 10
- Current Rs. 500 and Rs. 1,000 no longer Legal Tender
- Citizens have 50 days (November 9 till December 30) to deposit available Rs. 500 and Rs. 1,000 Currency Notes in their Bank Accounts
- Upto Rs. 4,000 can be deposited each day
- Exempted: Government Hospitals, Railway Stations, Airports, Petrol Pump till November 11
- ATMs will be unavailable on 9th and 10th November
Prime Minister Narendra Modi has announced another Surgical Strike, this time internally, on Black Money.
Beginning 00:00HRS of 9th November, Currency Notes of Rs. 500 and Rs. 1,000 will no longer be allowed as Legal Tender.
To further add control on the announcement, Modi announced that ATMs will remain closed across the country on November 9, 2016 and in selected cities even on 10th November 2016.
Tightening the noose on black money and terrorist funding, Narendra Modi has probably made the biggest announcement of any government, so far.
Other highlights of Modi’s announcement summarized below:
- The limit of depositing Rs. 500 and Rs. 1,000 will be enhanced after November 24, 2016
- Online Third Party transactions not affected
- Withdrawl limit from ATM to be kept at Rs. 2,000 per day
- Bank withdrawl to be Rs. 10,000 per day upto Rs. 20,000 per week
- Rs 500 and Rs 1000 Currency notes to be deposited only in Banks and Post Offices till 30 December
- Rs. 100 and downwards currency still legal tender
- Petrol Pumps and Retail Outlets will need to keep record of all cash transactions involving Rs. 500 and Rs. 1,000 till November 11
- Those unable to deposit Rs. 500 and Rs. 1,000 till December 30 will be able tot do so at selected RBI offices by showing ID proof and a declaration form
- Crematorium and Cemetary to accept Rs 500 and Rs 1000 till November 11
- No change in any other form of currency exchange be it cheque, DD, payment via credit or debit cards etc.
In his address to the nation an hour ago, Modi said that till date, the efforts of the government to recover black money has resulted in Rs. 1,25 Lack Crore of Black money to be recovered. He added that the rationale for this decision is based on the governments stand against terrorism and black money. He said that terrorist funding from within the nation, fake currency notes generation from across the border to fund terrorism will now be curbed following this decision.
He further added that other methods of recovering black money is also paying dividends. People are voluntarily disclosing black money and a special investigation team is set up to identify those who are transferring money abroad.
In the RBI Press Conference, addressed by the Governor of Reserve Bank of India said that the terror funding and fake notes business was a major concern with the Government and RBI alike, leading to such an announcement.
The Governor said that new legal tender currency printing of Rs. 500 and Rs. 2,000 is being worked on at the government mints. This will be escalated to counter the need for the replacement of existing volumes. New Currency notes will be available from 10th November.
RBI further said that the black and parallel economy has been a problem for the real economy. So for the real economy to grow, it is important that the shadow economy be struck down.
On being asked how the new notes image was circulated on social media, RBI said that the printing has been in place for quite some time and a photo might have leaked, to which RBI will look into.
It is being established that this will be a massive blow to terror funding, havala and smuggling business.
We will keep you updated on the developments related to this information…