In a major step to check black money, India’s Prime Minister Narendra Modi on Tuesday announced demonetization of Rs 500 and 1000 currency notes with immediate effect from midnight.
Thus making these two currency notes invalid in a major assault on black money, fake currency and corruption.
In his televised address to the nation, Modi said people holding notes of Rs 500 and Rs 1000 can deposit the same in their bank and post office accounts from 10 November till 30 December 2016.
Modi said from today onward these will be “just worthless piece of paper.”
He also said that all notes in lower denomination of Rs 100, Rs 50, Rs 20, Rs 10, Rs 5, Rs 2 and Re 1 and all coins will continue to be valid.
He also announced that new notes of Rs 2000 and Rs 500 will be introduced.
Here’s all you need to know about this sudden shift:
Where can a person exchange/ deposit his/her Rs 500 and Rs 1000 notes in India?
- From November 10 till December 30 you can deposit the old notes at your nearest bank or post office accounts without any limit.
- Withdrawals from banks are capped at Rs 10,000 per day and Rs 20,000 per week.
- You can also exchange Rs 500 and Rs 1000 notes for lower denomination at banks, head post offices and sub-post offices. However, the exchange limit has been capped at Rs 4,000, and you can exchange till November 24. One must produce a valid government identity cards like PAN, Aadhaar and Election Card.
- Banks will remain closed on November 9 allowing them time to cope with the new directive.
- There is no restriction of any kind on non-cash payments by cheques, DDs, debit or credit cards and electronic fund transfer.
What are the restrictions on ATM withdrawals?
- ATMs will not work on November 9 and in some places on November 10.
- From November 11, you can withdraw money and ATMs will stop dispensing the existing Rs 500 and 1000 notes.
- For the first few days, these withdrawals are being restricted to Rs 2,000 per card per day, and will later be increased to Rs 4,000 per card per day.
Where can I still use my Rs 500, Rs 1000 notes?
- Till November 11, the following government-authorised places and institutions will continue to accept Rs 500 and Rs 1000 notes for payment: hospitals; Railway/airline/bus ticket booking counters, Petrol/diesel and gas stations authorised by public sector oil companies; -Consumer co-operative stores; Milk booths; Crematoriums and burial grounds.
Where can I get the new currency notes?
- RBI will issue new currency notes of Rs 500 and 2000 from November 10 onwards. These notes will have new design.
Where can a person exchange/ deposit his/her Rs 500 and Rs 1000 notes in Australia?
- Please contact the Consulate General of India or a branch of an Indian bank here for more details.