New Rs. 500 and 2000 Notes and how will these curb black money
In a very surprising move, PM Narendra Modi announced that India will be demonetizing Rs. 500 and Rs. 1000 notes. While this announcement did send a shockwave through the length and breadth of this nation, PM Modi also quoted the reasons for which such a decision was made. Analysts and experts all over India have welcomed this move. The current Governor of RBI or Reserve Bank of India, Mr. Urijit Patel said that it was not only a bold but also a necessary move to cure the disease of black money and corruption in India.
Yes, the reasons that PM Modi quoted were black money and corruption. However, Modi did not leave terrorism aside. He was quoted saying during his speech that was broadcast on television that the counterfeit currency notes of Rs. 500 and Rs. 1000 are used for spreading terrorism as the terrorist organizations across the border make use of these fake notes to fund their activities in India.
Quick highlights of the speech given by PM Modi:
- India is fastest growing economy but is plagued by corruption and black money. Black money helps to promote terrorism.
- Counterfeit notes of Rs. 500 and Rs. 1000 are commonly used for all these activities.
- These notes will no longer be considered as legal tender starting midnight of November 8.
- Banks will remain closed on November 9.
- ATMs will remain closed on November 9 and 10.
- Bank withdrawal limits will be Rs. 10,000 per day and Rs. 20,000 per week.
- ATM withdrawal limits will be Rs. 2000 per day per card for now and Rs. 4000 per day per card later.
- People can deposit the existing Rs. 500 and Rs. 1000 notes at banks and post offices.
- People can exchange the existing Rs. 500 and Rs. 1000 notes at banks and post offices. The maximum amount that can be exchanged is Rs. 4000.
- For 72 hours from the time of ban, these currency notes will be accepted in few selected places like railway ticket booking counters, government bus booking counters, airport ticket booking counters, government hospitals etc.
New Rs. 500 and Rs. 2000 notes to be issued:
It was also announced during the speech that new notes of denomination Rs. 500 and Rs. 2000 will be circulated in market from November 10. New designs have already been revealed by RBI. The new notes of denomination 500 are known as Mahatama Gandhi series of bank notes. These notes will have a picture of the Red Fort of Delhi. The new notes of denomination 2000 will have the image of Mangalyaan – the satellite that was sent to Mars by India. The image of the Mangalyaan will be on the back side of the note. No further information is available about these new notes that will be circulated. However, the only information that is available so far is that these notes will go through a controlled release in market to minimize any kind of negative impact on the economy.
We will keep updating this article as soon as we get some new information. Until then, roll up your sleeves for you may face some difficulty in the next few days ahead. Don’t curse the government or RBI because just remember that this move is for our benefits only.
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