Tuesday , September 18 2018

PM Modi Bans 500 and 1000 Rupee Notes

PM Modi Bans 500 and 1000 Rupee Notes

Starting November 8 midnight, Rs. 500 and Rs. 1000 notes will be banned in India. Notes of these two denominations will no longer be legal tender. Starting tomorrow (November 9, 2016), currency notes of these two denominations will be reduced to the stature of useless papers. But why this sudden decision? Why this harsh decision?

PM Modi Bans 500 and 1000 Rupee Notes

This decision of PM Narendra Modi is a well thought out decision in a crusade against black money that has plagued the world’s greatest democracy for countless decades in the past. PM Modi stepped out to the public in the first televised broadcast to the nation stating that cross border terrorism is one of the darkest sides of black money and in order to fight this menace, Rs. 500 and Rs. 1000 notes will no longer be used as legal tender.

This sudden decision came after Pakistan violated ceasefire agreements in the troubled state of Jammu and Kashmir. Mr. Modi met with the chiefs of Army, Navy and Airforce and then addressed the nation. He is currently delivering the speech both in Hindi and English. Those of you who have missed the speech so far or will not get a chance to catch the whole speech live, here are some of the highlights of the historic address PM Modi made to this nation:

Highlights of the Narendra Modi speech on banning Rs. 500 and Rs. 1000 notes:

Time Most Important Points Speech Highlights
8:00 PM   PM Modi started delivering the speech.
8:01 PM   When the current BJP government came into power in 2014, the “I” of the BRICS nations was shaky economically.
8:02 PM   India is today a strong and powerful economy as per reports of World Bank and IMF.
8:03 PM   The BPJ government has been dedicated towards the upliftment of the poor people in this country and the government will continue to do so.
8:04 PM   Various schemes that were launched by the Modi government were highlighted by PM with special mention of Jan Dhan Yojana.
8:05 PM   Modi stated that India’s development is hindered by black money and corruption and that every citizen should stand up and fight against these evils.
8:06 PM   He gives examples of common people being honest while only a powerful few take the route of corruption and cause troubles for this country.
8:07 PM   Modi states that the terrorists from across India’s borders are the people who are spreading imitation currency notes.
8:10 PM   Terrorism, black money and corruption together hinders the robust economic growth that India can achieve.
8:11 PM   Modi clearly states that the current legal tenders of Rs. 500 and Rs. 1000 are the ones that are mostly used for black money and terrorism.
8:15 PM 500 and 1000 rupee notes will be Discontinued from Midnight. He states that starting from MIDNIGHT of November 8, 2016, the currency notes of Rs. 500 and Rs. 1000 will become illegal and that they will be nothing more that useless papers starting tomorrow.
8:20 PM How to change old Note PM Modi stated that people in possession of these currency notes should immediately get them exchanged from banks and sub and head post offices. The last date of getting them exchanged will be December 30, 2016. A person needs to provide a valid identity proof if he or she wants the notes to be exchanged. The accepted identity proofs will be Voter ID Card, PAN Card or Aadhaar Card.
8:21 PM People who fail to have the Rs. 500 and Rs. 1000 notes exchanged by December 30, 2016 will be given a second chance. They will have to give a declaration and then get the notes exchanged at Reserve Bank of India by March 31, 2017.
8:22 PM ATM will be closed on 9th and 10th November All ATMs will cease to operate till November 9, 2016. Some may remain dysfunctional till November 10, 2016.
8:25 PM   International airports and government hospitals will continue to accept these currency notes till November 11, 2016 midnight. Retail outlets and petrol pumps will have to keep records of every cash transactions involving Rs. 500 and Rs. 1000 notes till midnight of November 11, 2016.
8:27 PM ATM and Bank Cash Withdrawal Limit The limit for daily cash withdrawal from bank will be INR 10,000 while the limit for weekly cash withdrawal will be INR 20,000. While this limit for ATM will be Rs. 2000 per day per card for now and later it will be increased to Rs. 4000 per day per card.
8:30 PM   Internet banking, demand drafts and cash transactions will all stay functional.
8:31 PM Banks will be closed on 9th November Banks will not operate on November 9, 2016.
8:32 PM   RBI will start circulating a new series of Rs. 500 and Rs. 2000 notes.
8:34 PM   PM Modi says that this is one great opportunity for every Indian citizen to fight against corruption.
8:53 PM   Starting midnight of November 8, 2016, the existing Rs. 500 and Rs. 1000 notes will be accepted in all government hospitals as well as in all pharmacies that are present in hospitals.
9:10 PM   Urijit Patel, the current governor of RBI stated that black money is a big concern for Indian economy.
9:15 PM   Shaktikanta Das, Economic Affairs Secretary stated that this move by the government is a big and bold move. Das stated that imitation notes are mostly used for financing cross-border terrorism and that the BJP government has taken several steps to combat terrorism in the last two years of its rule. This bold step is going to take the fight a long way. He stated that fake currency notes corrode the economy and that they should be stopped.
9:20 PM New Rs 500 Note and New Rs 2000 Notes New currency notes will go into circulation starting November 10 and a new denomination of Rs. 2000 will be introduced in market. The new notes of Rs. 500 and Rs. 2000 will have new designs and the Rs. 2000 notes will have Mangalyan logo.
9:21 PM   New control rooms have been formed in RBI in Mumbai. The numbers for these control rooms are 022 22602201 and 022 22602944. These control rooms will start operating from morning 8 Am of November 9, 2016.
9:22 PM   All transactions in banks will be put under video camera surveillance and that people should be very careful while they are exchanging legal cash, says Shaktikanta Das.
9:25 PM   Specimen of new designs of Rs. 500 and Rs. 2000 have been shown by RBI.

As the speech is currently in progress, let us take a quick look at the places where the current Rs. 500 and Rs. 1000 notes that are in circulation will be accepted for next 72 hours starting midnight of November 8, 2016:

  • Government hospitals.
  • Pharmacies in hospitals.
  • Booking counters for railway tickets.
  • Booking counters for government buses.
  • Booking counters for airlines in airports.
  • Gas, diesel and petrol stations that have been authorized by oil companies in public sector.
  • Central Government or State Government authorized consumer cooperative stores.
  • State Government authorized milk booths.
  • Burial grounds and crematoria.

In his historic speech, PM Modi stated that all currency notes of denominations 100, 50 and 10 will stay as legal tenders and that all coins of all denominations that are currently under use will also continue to exist. In his speech, Modi stated that during the government’s 2.5 years of rule, a total of Rs. 1.25 lakh crore of black money has been extracted from the economy and that this move will help to strengthen India’s already strong economy.

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