Prime Minister Narendra Modi has taken a historic decision by banning Rs 500 and Rs 1000 note from tonight for curbing black money. General public will not be able to use these notes after 12am of 8th November 2016.
This is a great move taken by the PM Modi to kill corruption and black money monster. People can make the payments through online and cheque. It is a major problem for those who have lots of black money in cash because they will have to submit PAN card or Adhaar card in the Banks and Post offices to exchange the Rs 500 and Rs 1000 notes.
For next two days Banks will be closed and ATMs will also not be functioning as the Government needs to put the fresh notes in them.
Soon fresh notes of Rs 2000 will be available in the Banks but till then people will have to manage with Rs 1000 notes. Once Rs 2000 notes are available in the market situation will become normal.
Rs 500 and 1000 notes can be used in Government hospitals, medical shops, Railway stations, Bus stands and Airports till 11th November so that people do not face problems at these places.
There is no problem in using the coins and you can very well use them but it will be difficult if you want to do bigger transactions in the market. RBI told that the circulation of Rs 1000 note had increased up to 109% which shows that fake notes of Rs 500 and Rs 1000 were in maximum circulation.
One more important thing in this move taken by the Central Government is that one person cannot exchange more than Rs 4000 per day and that too after providing PAN card or Adhaar card.
Reserve Bank of India has told in the press conference that they are prepared and they will be releasing new currency notes with new features and look and new notes will be officially available from 10th November.
The new Rs 500 note will have Red Fort picture with Mahatma Gandhi photo and the New Rs 2000 note will have a Mangal Yaan photo on it.
RBI feels that It is great dent on black money as people who have accumulated black money will not be able to exchange the cash money because when they will go for exchanging the money Government will know that it is a black money which is not claimed in the bank statements.
Currently there is panic situation in the market and people do not know what exactly to do.
However the News TV channels have stated that money can be exchanged till 30th December. Further for some days ATMS will also not have more than ten lakh rupees as these will only have hundred rupees notes and that will take more space/volume.
This surgical strike on black money will definitely help the Indian Government to curb the use of black money and fake currency. For few days one can only withdraw Rs 2000 cash and this limit will be increased to Rs 4000 per day from the ATMs.