500 And 1000 Rs Notes Banned: Everything You Need To Know About It

Don't panic!

PM Modi, RBI, Banks, ATMs, New Notes, Fake Currency, Demonetization

PM Narendra Modi address (08/11/2016):

PM Modi, in his address earlier today, declared on national television: “ 500 and 1000 rupee notes will not be a legal tender after midnight today.” Now this caused a fair amount of confusion among many so let us try to find the ‘hows’ and ‘whys’ of this -

Reason of the ban:

India’s security establishments have a doubt that Pakistani spy agencies were pumping fare notes of Rs 500 and Rs 1000. The total value of these fake notes in 2010 was around 1,600 crore. So it is clear that PM Modi has decided to impose a ban to put a stop on black money and corruption.

What to do with the 500 and 1000 Rupee notes?

People can deposit their money in bank accounts and post offices within 50 days from November 10 to December 30. You can also exchange your notes at the banks and post office from November 10 to November 24 by showing your valid identity card like Aadhaar card, PAN card, etc. In the transition period one can only withdraw 4000 Rs per day. If anyone is unable to deposit their money till December 30, they can visit the designated RBI office till March 31 and do the needful.

What is the Government’s next step?

New notes of Rs 500 and Rs 2000 will be introduced soon.

What about the ATMs and Banks?

Banks will be closed for public today. Withdrawals from ATMs will also be restricted today.

Old notes are valid at some places:

1.  Old notes will be valid and accepted at the Government hospitals and Pharmacies for three days.
2. Railways and airways booking counters and also government buses.
3. Petrol stations like Indian oil, Hindustan Petroleum, ec.
4. Government authorised consumer stores and milk booths.
5. Morgues and Burial grounds

How to access the new notes:

People can withdraw new notes of Rs 500 and Rs 2000 from the bank accounts and post offices, with a limit of 10,000 Rs in a day and 20,000 Rs in a week. You can also withdraw from ATMs, with a temporary limit of Rs 2000-4000 per day.

Title image: globalexpressnews

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Vinam Pachkhede (WRITER)

Vinam Pachkhede is a history and psychology student. An amateur writer, she is currently associated with Reacho and contributes as a content writer. She is a great fan of stand-up comedy. Also a Foodie, Potterhead, Cumberbitch and Marathi Mulgi.