The Indian PM NarenderModi had announced the ban on the Rs.500 and Rs.1000 currency notes. It is one of the major breaking news since the year 2014, the year when we people together elected our new government. This announcement might have shattered a lot of people in India, especially the black money holders. This news has brought a storm in India. Though the Rs500 and Rs.1000 currency notes are banned in India from now onwards, yet the government has managed to take few important steps in order to help its citizens. The notes can be easily changed from the post offices and banks.
First of all, I would like to talk about the highlights of our Indian PM Modi’s speech about the ban on Rs.500 and Rs.1000 currency notes. When we elected our new government in the year 2014, the whole world talked about our Indian’s shaky economic condition. But, PM Modi has managed to bring our country India among one of the brightest economic stars in the world.
Highlights of PM Modi’s Speech
- ‘Sab kaSarkar, sab kaVikas’ is the motto of our Indian Government. It means ‘Governance and Progress for all.’ Our Indian Government is majorly focusing on the empowerment of the poor.
- Corruption and black money in India have been one of the major obstacles to the economic growth of the country.
- India ranks on the top of the list under Global Corruption despite having one of the fastest-growing economies.
- The innocent people are suffered during the terrorist attacks. The terrorists are funded by the cross-border enemies through the fake currencies.
- The measures which our Indian Government taking in order to catch hold the black money and their holders are finally paying off. Even the voluntary disclosure scheme has received a great response.
- By now, the Government has managed to recover around 1.25 lakh crores of black money. And the ban on Rs.500, Rs.1000 currency notes will help us all in fighting against corruption and black money.
- People have around 50 days to deposit their money to post offices or their bank accounts. Or you can even exchange maximum Rs.4000 per day till 24th November 2016.
- Till the 11th November midnight, all the consumer courts, government hospitals, crematories, petrol pumps and few others are allowed to accept the Rs.500, Rs.1000 notes. But they have to keep all the transaction records.
- There is no change in any other form of currency exchange including DD, credit/debit cards, cheque, etc.
- Those who will fail to deposit their money by 30th December 2016 can change by showing valid ID proof at RBI latest by 31st March 2017.
- The high currency notes by RBI will be circulated soon in a form of new Rs.2000, Rs.500 notes.
Why India Banned Rs.500, Rs.1000 Notes?
99% of the people are searching for the methods to exchange their Rs.500 and Rs.1000 notes, but the major question which arises is ‘why India banned Rs.500, Rs.1000 notes?’ Obviously, the genuine white money people won’t be affected, but what is the reason behind this sudden step by our Indian Government?
The fake Indian currency has seen higher denomination in the past few years and this is one of the major reasons behind this drastic step of Indian Government.
- Hoarding the black money
- Getting rid of fake currency notes
- Reducing anti-national as well as illegal activities
- Fake currency misused by the terrorists
India banned Rs.500, Rs.1000 notes in order to fight against corruption and black money.
How to change Rs.500 and Rs.1000 note in Bank?
- Show your valid ID proof like Aadhaar card, Driving license, PAN card
- You can only exchange Rs.4000 per day and Rs.10000 per week till 24th November 2016 and after that, the limit would be increased
- You can exchange the notes from any bank or bank branch through electronic transfer
There is no limit to deposit your money to your bank account. The Rs.4000 per day, Rs.10000 per week till 24th November 2016 followed by Rs.20000 per week is only applicable on notes exchange.
Where the Rs.500, Rs.1000 notes will be accepted?
- Authorized milk Booths by the State Government
- Government Hospitals
- Crematoriums, burial grounds, and cemeteries
- Bus, airplane and railway ticketing booths
- Consumer co-operative stores by State or Central Government
How will the ban affect the common man?
Those who have earned legally have to deposit the money in their banks. This will help the banks with a subsequent increase in the margin. It will also help the banks with an increase in the lending activity, more the deposits, more the lending. Even the interest rates will come down and the credit loans will become easy. But all of this will happen with time slowly, don’t expect it to happen overnight. Only heavy deflation will happen overnight. Because those people who have earned illegally would be scared to deposit the money in the bank.
The Indian Government even assured the citizens that the entire value of their money would be given to them through the banks, post offices or RBI offices. The ban on Rs.500, Rs.1000 currency notes is significantly one of the most powerful, bold and a decisive step by the Indian Government.