In a move to curtail Black money, terrorist financing, fake currency Prime Minister Modi has declared 500, 1000 notes to be considered as Illegal for any transaction beginning midnight 9 November.
Important Points from PM’s Speech:
- From midnight of November 8, 2016, Rs. 500 and Rs.1000 will cease to be legal tender.
- Government hospitals, international airports, bus ticket window, train ticket window will continue use of these notes till 11 November.
- There is no restrictions on internet banking, cash, demand draft transactions.
- Banks will be closed on November 9. ATM’s would not work on November 9 & 10.
- The currency notes can be exchanged in banks and head post offices and sub post office from November 10 till December 30, 2016, by providing a valid identity proof such as Aadhaar, PAN card or voter ID card.
- People who possess Rs.500 or Rs. 1000 currency notes after December 30 can exchange it at Reserve Bank of India by providing a declaration, till March 31, 2017.
- A new series of Rs. 500 currency notes and Rs. 2000 currency notes will be brought into circulation.
How will this help:
As all the 500 & 1000 notes have been declared illegal, the move will help to:
- Curtail Black money,
- Terrorist financing,
- Fake currency.
- Improving election process in coming State elections in UP etc as the illicit cash flow will now be curtailed.