10 Facts about demonetization of 500 and 1000 Currency Notes.

INDIA: Rs500 & Rs1000 old notes have been banned. The notes which don’t have any dates written at the back have been banned. You can deposit the same at your bank from 10th November to 30th December. Starting next year we are gonna have new notes probably. PM Modi Government is also working on issuing of 2000 Currency Notes which will be available in market from 2017 itself.

Deposit old notes and take new ones. That’s the new mantra of our Prime Minister, Shri Narendra Modi to maintain checks and curb black money. Here are the some facts which you need to know immediately.

1. Black money issue,  500 rupees and 1000 rupees banned from Midnight i.e. 8th Nov 2016.

2. ATM’s 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 means all Indian banks will be OFF on Wednesday.

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.

10. After 31st Dec, may be Govt. will charge some small amount for replacing the currency notes of 500 and 1000.

Deposit old notes of 500 or 1000 in bank or post office accounts from 10th Nov till 30th Dec 2016 without any limit. There will be a limit on Withdrawl of Rs 10000 per day and Rs 20000 per week. This limit will be increased in the coming days. Exchange olf notes of 500 and 1000 at any bank, head post office or sub post office while showing ID proof. The limit for this is 4000 upto 24th Nov.

No Restriction of any kind on non-cash payments by cheques, demand drafts, debit or credit cards and electronic fund transfer. On 9th Nov and in some places on 10th Nov also, ATMs will not work. In the first few days, there will be a limit of 2000 per day per card. This will be raised to Rs 4000 later.

For 72 hours, Govt Hospitals will continue to accept old Rs 500 and 1000 notes for payment.

For 72 hours, railway ticket booking counters, ticket counters of govt buses and airline ticket counters at airports will accept the old notes for purchase of tickets.

For 72 hours, old 500 and 1000 notes will be accepted at
– Petrol, Diesel and Gas stations authorised by public sector oil companies.
– Consumer co-operative stores authorised by state or central government.
– Milk booths authorised by state governments.
– Crematoria and Burial grounds.

The problem of black money is not one of 500 and 1000 notes but the loads of money stashed in Swiss banks. For lack of political will to bring back the money stashed away, this gimmick of declaring 500 and 1000 as not legal tender overnight and limiting transactions. Will the money held by politicians and corporates be affected? Are they going to go and stand in ATMs and banks in queue? This move will only affect the general public.

Comment here, if you really thinks that it will reduce the graph of Corruption & Black Money.