Prime Minister Announces Historic Steps to Fight Black Money: 500 and 1000 Rupee Notes will Cease to be legal tender
High denomination notes of Rs 500 and Rs 1000 will no longer be legal tender from 10.11.2016
To root out the menace of black money and corruption.
- Five hundred and 1,000 rupee notes will cease to be legal tender from today (10.11.2016), Prime Minister Narendra Modi announced this in a surprise address to the nation last evening. He said the decision was taken to root out the menace of black money and corruption.
- In a special nationwide televised address last evening in New Delhi, Prime Minister said, the decision has been taken to break the grip of corruption and black money. Prime Minister however, assured that notes of one hundred, fifty, twenty, ten, five, two and one rupee and all coins will remain legal tender and will not be affected. He also assured that the rights and the interests of honest, hard-working people will be fully protected.
Rs 500 and Rs 1000 rupees can deposit these notes in their bank or post office accounts
- Prime Minister said this step will strengthen the hands of the common man in the fight against corruption, black money and fake currency. He said to minimise the difficulties of citizens in the coming days, several steps have been taken. Prime Minister said Persons holding old notes of five hundred or one thousand rupees can deposit these notes in their bank or post office accounts from 10th November till 30th December 2016 without any limit.
- Those who are not able to deposit 30th December 2016 can go to the specified offices of RBI up to 31st March 2017 and deposit the notes after submitting a declaration form. However, for immediate needs, old five hundred or thousand rupee notes can be exchanged in any bank, head post office or sub post office by showing identity proof like Aadhaar card, voter card, ration card, passport, PAN card or other approved proofs. The limit for such exchange will be four thousand rupees till 24th November, and will increase from 25th November till 30th December 2016.
- Mr. Modi said keeping in mind the supply of new notes, in the first few days, there will be a limit of ten thousand rupees per day and twenty thousand rupees per week. This limit will be increased in the coming days. Prime Minister said ATMs will not work today and in some places tomorrow also and for the first few days, there will be a limit of two thousand rupees per day per card, which will be raised to four thousand rupees later. Mr. Modi said for humanitarian reasons, for the first 72 hours, that is till midnight on 11th November government hospitals will continue to accept five hundred and thousand rupee notes for payment.
- Pharmacies in government hospitals will also accept these notes for buying medicines with doctors’ prescription. Also till midnight on 11th November, railway ticket booking counters, ticket counters of government buses and airline ticket counters at airports will accept the old notes for purchase of tickets. Also at Petrol, diesel and CNG gas stations authorised by public sector oil companies Consumer co-operative stores authorised by State or Central Government, Milk booths authorised by State governments, Crematoria and burial grounds.
- However, these outlets will have to keep proper records of stock and collections. The Prime Minister also said at international airports arriving and departing passengers who have five hundred or thousand rupee notes of not more than five thousand rupees, to exchange them for new notes or other legal tender. The limit for foreign tourists will be not more than 5000 rupees. Prime Minister said there is no restriction of any kind on non-cash payments by cheques, demand drafts, debit or credit cards and electronic fund transfer.
- Mr Modi said, his government has waged a war against corruption and the Government has unearthed 1.25 lakh crore rupees black money. Prime Minister said, his Government is dedicated to the poor and will continue to do so and in all the policies. He said, despite adverse situation, the country has registered itself as a bright spot and it has declared by the IMF and World Bank. The Prime Minister shared the insight into how the magnitude of cash in circulation is linked to inflation and how the inflation situation is worsened due to the cash deployed through corrupt means.