Rs 500 and Rs 1000 Notes Demonetised
New Rs 500 and Rs 2000 Notes to be introduced
22 Billion Notes Sucked Out of Circulation
By TN Ashok
New Delhi , Nov 08 : India was rocked tonight by a monetary lightning that sucked out 22 billion currency notes comprising 16.6 billion notes in Rs 500 denomination and 6.6 billion in Rs 1000 denomination as the Modi led BJP-NDA government declared the Rs 500 and Rs 1000 note as invalid legal tender from midnight of November 8-9.
Prime Minister Narendra Modi announced this historic measure in his first televised announcement which first shocked the nation but soon greeted with applause as the intentions became clear that it was to root out black money, make counterfeit currency worthless paper and wipe out terrorist funding.
Welcomed largely by the people and corporate sector, despite the inconvenience, alebit temporary, that it causes to people holding to these notes, the Modi government showed its determination to terrorise and paralyse the parralell economy, which some economists reckon is over one trillion worth.
India’s federal bank , the Reserve bank of India, will replace the old Rs 500 note with an entirely newly designed note with more safety features that will display the historic Red Fort on the flip side while retaining the face of the Indian currency for decades, image of Mahathma Gandhi on the front side.
The Rs 1000 note is being replaced by a higher denominated Rs 2000 note which will have the ISRO’s Mangal Yatra (Mars Mission) satellite on the flip side retaining the image of the father of the nation Mahathma Gandhi and his famous horn rimmed glasses set across a white band.
Top officials of the finance ministry released the details of the governments historic move in demonetising the notes at a crowded press conference in the capital late evening. Even as the President Pranab Mukherjee lauded the government effort and asked people not to panic but following the government instructions in returning the old notes to the banks, there was apprehension among people holding these notes on how they will do transactions Nov 09 as banks would remain closed and ATMs shut.
In his first 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 November 10 till December 30.
Banks will be closed tomorrow for withdrawing the old demonetised notes at banking counters and ATMs and restocking them with the new notes. “ We will work round the clock to ensure that customers have a smooth experience “, SBI chairman Arundhati Bhattacharya said.
In the transition period, debit cards, e-transactions will continue. All electronic transactions on account of business firms, companies and individuals will continue in the new two days..
DEA Secretary Shaktikanta Das told newsmen that all monetary transactions in exchanging old notes for new notes will be done at their own risk if they cannot be accounted for properly. Control rooms have been formed in RBI in Mumbai – 022 22602201, 22602944 will be operable from tomorrow morning 8 am.
There is no restrictions on internet banking, cash, demand draft transactions. Rs 10,000 daily cash withdrawal and Rs 20,000 weekly cash withdrawal limit will now be in force and not more than Rs 4000 can be withdrawn from an ATM.
People who possess Rs.500 or Rs. 1000 currency notes after December 30, the 50 day grace period for surrendering the demonetised notes, can exchange it at Reserve Bank of India by providing a declaration. This is tillMarch 31, 2017. These notes should be exchanged in banks and head post offices and sub post office within December 30, 2016, by providing a valid identity proof such as Aadhaar, PAN card or voter ID card.