The news that has taken the nation by surprise- Prime Minister Narendra Modi announced the demonetisation of Rs. 1,000 and Rs. 500 notes with effect from midnight, making these notes invalid. This is a very big move against black money, fake currency and corruption.
Here are 5 things you must know about the ban on Rs. 500 and Rs. 1,000:
1. ATMs won’t work on 9th and 10th November.
You can however withdraw money Friday onwards, 11th November. ATM withdrawals will be restricted to Rs. 2,000 per day till November 11, after which this limit may be increased gradually.
2. Where can you still use Rs. 500 and Rs. 1,000 notes?
Emergency needs and services like the following will accept old notes till 11th November:
- Government hospitals
- Train, airline and bus ticket bookings
- Petrol, diesel and gas stations authorised by public sector oil companies
- Milk booths authorised by state government
There is no restriction of any kind on non-cash payments by cheques, demand drafts, debit or credit cards and electronic fund transfer.
3. Banks will not be available for public banking services on 9th November
As the RBI stocks banks and ATM machines with lower denomination notes. “Banks will be closed tomorrow. It will cause some hardship to you….Let us ignore these hardships… In country’s history, there comes a moment when people will want to participate in the nation building and reconstruction. Very few such moments come in life,” Modi said.
New notes of Rs.500 and Rs.2000 will be in circulation from 31st March 2017.
4. All Residents have option till 30th December 2016, to deposit their existing cash balance of Rs.500 and Rs.1,000 in their bank accounts.
Those unable to deposit Rs. 1,000 and Rs. 500 notes till December 30 this year can do so in designated RBI offices till March 31 next year after filling a declaration form along with proof and reasons.
5. Why is the RBI issuing Rs. 2,000 Notes?
The Rs. 2,000 currency is designed to put at end to the black money in India using nano technology. Every Rs. 2000 note is embedded with a NGC (Nano GPS Chip). The chip acts as a signal reflector. When a Satellite sends a signal requesting location the NGC reflects back the signal from the location, giving precise location coordinates, and the serial number of the currency back to the satellite. This way every NGC embedded currency can be easily tracked & located even if it is kept 120 meters below ground level. The NGC cant be tampered with or removed without damaging the currency note.
How does this help? If a relatively high concentration of currency is found a certain location for a longer period of time at suspicious locations other than banks & other financial institutions. The information will be passed on to the Income Tax Department for further investigation.
Do you think this is a good move to curb black money? Share with us your thoughts in the comments below.