Rs 500, Rs 1000 notes banned
In a move that has startled the nation, Prime Minister Narendra Modi on Tuesday abolished Rs 500 and Rs 1,000 notes effective midnight. The move, aimed at tackling fake notes and the black money economy, is expected to have a huge impact on the economy, equivalent to a substantial withdrawal of money or a significant hike in the interest rates. He expressed confidence that the staff of banks and post offices will rise to the occasion to introduce the new order within the available time.
From November 10 till December 30 you can deposit the old notes at your nearest bank or post office accounts without any limit. But withdrawals from banks are capped at Rs 10,000 per day and Rs 20,000 per week. This limit will be increased in the coming days.
You can also exchange Rs 500 and Rs 1000 notes for lower denomination at banks, head post offices and sub-post offices. However, the exchange limit has been capped at Rs 4,000, and you can exchange till November 24. One must produce a valid government identity cards like PAN, Aadhaar and Election Card.
Banks will remain closed on November 9th.
There is no restriction of any kind on non-cash payments by cheques, DDs, debit or credit cards and electronic fund transfer.
ATMs will not work on November 9 and in some places on November 10. But from November 11, you can withdraw money and ATMs will stop dispensing the existing Rs 500 and 1000 notes. For the first few days, these withdrawals are being restricted to Rs 2,000 per card per day.
Till November 11, the following government-authorized places and institutions will continue to accept Rs 500 and Rs 1000 notes for payment:
- hospitals
-Railway, airline, bus ticket booking counters
-Petrol, diesel and gas stations authorized by public sector oil companies
-Consumer co-operative stores
-Milk booths
-Crematoriums and burial grounds
RBI will issue new currency notes of Rs 500 and 2000 from November 10 onwards with new design.
News Posted: 8 November, 2016
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