On Tuesday (8th November 2016), the Indian Government, PM Narender Modi had announced in his speech that it would be illegal to use the Rs.500 and Rs.1000 currency notes from 9th November 2016 onwards. This announcement has been made to fight against black money, corruption, and fake currency. When the announcement was made by the Indian PM, the RBI came up with their ready reckoner.
Reasons to Have This Scheme
With the increasing higher denomination of the fake Indian Currency is the major reason behind this scheme.
- Fake currency notes seem to be genuine ones to ordinary people
- Used for illegal and anti-national activities
- Hoarding black money
- Misused by the terrorists
The scheme to withdraw the use of Rs.500 and Rs.1000 currency notes have been introduced to fight against black money and fake notes.
Highlights of the Modi’s Speech
In this section of the article, we will be sharing about some of the serious and important issues. In the year 2014, when people elected their government, the whole world talked about the India’s shaky economic condition. But now, even the World Bank and the IMF said that India is one among the economic stars.
- The motto of the PM Modi’s Government is the ‘Sab ka Sarkar, sab ka Vikas’ which means ‘Governance and Progress for all.’ The major focus of the government is the Empowerment of the Poor. This government is significantly for the Indian farmers because most of the schemes have been introduced in support to poor people.
- The major obstacles to the success of Indian Economy are the black money and corruption which are the roots of the country.
- India is one among the fastest-growing economies but tops the list under global corruption rankings.
- There are terror attacks on the innocent people and they are funded by the cross border enemies through the dodgy funds and fake currencies.
- The measures which the Indian government is taking to check the black money are finally paying off quite well. The voluntary disclosure scheme which was introduced for checking the undeclared money received a good response. The Special Investigating Team is making efforts for identifying the people who sent their money off to abroad.
- Indian Government has recovered black money around 1.25 lakh crores. And thus, we have taken a solid step to fight against black money. From now on, the use Rs.500 and Rs.1000 currency notes will be illegal. The people have 50 days to return or exchange the money from post offices or banks.
- On November 9 and 10, the ATMs won’t work.
- For the initial 72 hours that is until the midnight of November 11 the government hospitals, petrol pumps, consumer courts and few others will accept the old Rs.500 and Rs.1000 currency notes.
- The retail outlets, as well as the petrol pumps, have to keep up with all the cash transaction records till 11th November.
- The cemeteries and crematoriums will be allowed to accept the notes until 11th November.
- No change in any other form of currency exchange including debit, credit cards, cheque, DD, etc.
- People who fail to deposit their Rs.500 and Rs.1000 currency notes by 30th December 2016 can change till 31st March 2017 by showing the valid ID proof.
- The RBI has decided to limit the high currency notes which will be circulated soon in the form of new Rs.500 and Rs.2000 currency notes.
Places where the Rs.500 and Rs.1000 notes will be accepted
- Government hospitals
- Petrol pumps
- Ticketing Booths
- Central or State’s government consumer co-operative stores
- State Governments authorized milk booths
- Burial grounds, cemeteries, and crematoriums
What to do with the Rs.500 and Rs.1000 currency notes?
- Deposit the money at post office or bank from 10th November to 30th December
- Exchange the money from the post office or bank until 24th November and the limit is Rs.4000
- For exchanging the notes, you have to show your valid ID proof like PAN card or Aadhaar Card
- After 30th December 2016, the money will only be deposited at RBI with a declaration
- The notes can be changed at the airports by the tourists
People will get the entire value of their volume of notes which will be tendered at the RBI offices or banks. Every person can get Rs.4000 in cash and if you have to pay for other requirements, then you can pay through other forms like online using debit or credit card or through a cheque. It is not compulsory to visit the same bank branch where you hold your account. But if you manage to deposit from any other bank branch or bank, then you have to show a valid ID proof for electronic transfer.
To fight black money, the ban on Rs.500 and Rs.1000 currency notes is a decisive, bold and a very powerful step.