Modi Shocks – Rs 500 / 1,000 notes abolished – 15 Interesting facts to know
Today Modi has shocked entire India by announcing that Rs 500 and Rs 1,000 notes would be abolished by today midnight (8th November, 2016 midnight 12). Entire India is not able to digest that such notes are no more legal tender from today midnight. Government decision was hard, however, would definitely bring down the corrupt. What should you do as a individual or investor now?
What does it mean about Rs 500 and Rs 1,000 notes discontinuation?
Modi announced this shocking decision. However, one should understand under issues.
1) Rs 500 and Rs 1,000 would be abolished immediately from midnight of 8th November, 2016. Means, these are not valid legal tender any more after this time.
2) Banks are closed on 9th and 10th November, 2016 which is another shock. ATMs would not work on 9th November and most of the places on 10th November.
3) RBI would release new Rs 500 and Rs 2,000 notes soon.
4) Rs 100, 50, 20, 10 and Rs 1 are still valid legal denomination currency.
5) If you are holding Rs 500 or Rs 1,000 notes you should exchange with lower denomination from banks or post office within 50 days i.e. sfrom 10th November to 31st December, 2016. There are no charges for the exchange.
6) If you are unable to exchange them before 31st December, 2016, you can still exchange upto 31st March, 2017 with designated offices of RBI. However you need to provide declaration along with proof and reasons for delay in submission.
7) You can withdraw Rs 2,000 per day from ATM and Rs 10,000 per day from bank and Rs 20,000 per week from banks.
8) However, Modi indicated that there are few exceptions about this abolision which would be extended for next 72 hours.
9) For next 72 hours Govt Hospitals would continue to accept Rs 500 and Rs 1,000 old notes.
10) For next 72 hours Railway Ticketing counter, govt ticket counters, airline ticket counters at airport would continue to accept Rs 500 and Rs 1,000 old notes.
12) For next 72 hours, Petrol, diesel and gas stations authorized by public sector oil companies would continue to accept old notes.
13) Consumer co-operative stores authorized by State or Central Govt.
14) Milk booths authorized by Govt.
15) Crematoria and burial grounds.
Does it improve Indian economy?
Modi takes this extraordinary step to abolish Rs 500 and Rs 1,000 notes to fight corruption, blackmoney and weaken terrorism.
Govt believes that this step would open up new opportunities for poor, neo middle class and middle class.
Modi feels that Real estate prices, higher education and health care would come within the reach of common citizens.
It would weaken the terrorism as funding for arms smugling and terrorists would be choked.
It would end the circulation of the large volume of counterfeit currency.
How does general public react to such shocking news?
Few interesting comments I have seen across media.
Nitin Agarwal: I have almost 25 Lakhs in cash. how can i exchange it ? maximun exchangeable amount per day from a bank is only Rs.10,000. And only 50 days are left. I will have to hire 5 people to exchange from banks.
Sagar: There is festival tomorrow in Kolkata, Durga- Jagathatri puj, what a panic in festive season?
MV: What a master stroke and a bold move. The whole nation is taken by surprise. Fantastic action taken by Our beloved Prime Minister to curb black money and fake currency .Now we have a great PM who breathes ,Welfare,Welfare, Welfare……..of our beloved motherland and supported very well by all his collegues.The countrys President has also lauded this great move. A very well analysed and planned decision implemented with clinical precision. NEED OF THE HOUR. Entire Country should feel happy. JAI HIND.
Kumar: I am staying in South Korea, I have 5 notes of 500's. How should I exchange ??
Tushar: Is Mr.Narendra Modi out of his mind??? What if my relative is getting a treatment in Apollo Hospital. What will i do if I have to pay for diesel (say around Rs.2500), if i am not having Rs.100 notes. I wont be able to eat in a restaurant??? Huh. What about those who keep cash for their daily needs and have 5 Rs.500 notes out of the ten. What about those who don\'t have a bank account( especially when Mr. Modi\'s focus is on the poor). This announcement should have been made at least a month ago. Just your whims and wishes to curb black money doesn\'t mean you pass any such order. Discontinuing the notes from midnight onwards. Not everyone is having debit/credit cards Mr. Modi. Just think about it!!!!
Ramesh: Don’t worry friends, I will accept your Rs 500 and Rs 1,000 notes without asking any questions…… Rs 100 per KG.
What does Modi comment about discontinuation of these notes?
"Banks will be closed tomorrow. It will cause some hardship to you….Let us ignore these hardships… In country's history, there comes a moment when people will want to participate in the nation building and reconstruction. Very few such moments come in life," Modi said.
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Modi Shocks – Rs 500 / 1,000 abolished – 15 Interesting facts to know