All You Need To Know About The Latest Change In Indian Currency

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. Old notes can be exchanged with RBI (Reserve Bank Of India) from 1st January till 31st March 2017.

Starting from midnight today, Rs.500 and Rs.1000 notes stacked up in your wallet will carry the same worth and value as those papers lying in your trash. In a new initiative to curb corruption and invalidate the black money that is stacked up in these denominations, Prime Minister of India, Mr. Narendra Modi has announced the demonetization of these two currency notes in India.

The holders of these currencies can deposit them in banks and post offices starting from November 10, 2016, to December 30, 2016, by submitting a valid ID proof. The introduction of new Rs.500 and Rs.2000currency notes and the exchange are said to take place shortly. If unable to deposit the notes by December 30 for any reason they can exchange them till March 31, 2017, by furnishing filling proof and reasons.

The valid currencies that are currently in circulation are Rs.100, Rs.50, Rs.20, Rs.10, Rs.5, Rs.2 and Re 1. The Prime Minister also added that there will be no restrictions on non-cash payment methods like cheque, DD, payment via credit or debit cards or any other form of currency exchange.

new-currency

Restriction on the withdrawal limit has also been placed, only a maximum of Rs.10,000 daily and Rs.20,000 weekly from the account is allowed from banks and only Rs.2000 can be withdrawn from ATMs in a day.

Mr. Modi said that the government had been in a constant struggle to stop black money and corruption. He asked for people’s help in fighting against corruption and helping the poor. Targeting cross-border terrorism is another important issue that the Prime Minister focused on. He said that the “terror across borders” are funded and allowed to take place due to the use of fake currencies and dodgy funds.

It has been announced that through Voluntary Deposition Scheme nearly 1.25 Crores of black money has been recovered. A special investigation team is also formed to monitor the cross-country transactions.

The RBI’s decision to limit the notes of higher value also supplements the fight against corruption. Pictures of the new 2000 and 500 notes are now going viral on the media and have been confirmed by RBI that they are indeed the leaked photos of the new notes. These new notes are also said to have chipset tracking devices which will track the notes and help the income tax department in maintaining better records.

To facilitate the change, all Banks will remain closed in the country on November 9th. Some ATMs are also not expected to work until 10th of November. However, until then, all Government hospitals, crematoriums, cemeteries, international airports, government authorized consumer co-operative stores and public sector oil petrol bunks will continue to accept the old notes until November 11. Meanwhile, the petrol pumps and retail stores are expected to maintain a clean record of every single note of the transactions that take place.