Modi Band 500 and 1000 Notes

2 years ago Nikhil Pillai 0

Modi Band 500 and 1000 Notes

Prime Minister Narendra Modi has announced that the currency notes of Rs 500 & Rs 1,000 are bands from 9 November 2016.

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Speech Of Narendra Modi:

When you elected the government in 2014, the world was talking about India shaky economically. But From Now the India is an economic star said by the IMF and World Bank. Modi Band 500 and 1000 Notes.

Sab ka Sarkar and Sab ka Vikas government and progress for all are our mottoes. We are focused on the empowerment of the poor. A list of schemes we have introduced all aims at this. These is what the government of our farmers.

We are among fastest-growing economies, and we also rank so high in global rankings in Corruption.

Black money and Corruption are diseases rooted in this country, and they are obstacles to our success.

Terror strikes at the innocent. Who finances these terrorists? Over the border, our enemy uses false currency and dodgy funds to sponsor terror.

Our measures to check black money is paying off. A voluntary exposure scheme for undeclared money observed a good response.

The Special Investigating Team is making progress to identify that who has sent money to another country.
1.25 lakh crores of black money have recovered.

Modi Band 500 and 1000 Notes

FILE - In this Dec. 16, 2011 file photo, a cashier holds bundles of Indian rupee bank notes at a bank in Allahabad, India. India's prime minister has announced late Tuesday, Nov. 8, 2016, scrapping of high denomination 500 and 1,000 Indian rupees currency notes in what he describes as a major step to fight the menace of black money, corruption and fake currency. Prime Minister Narendra Modi in a speech carried live on radio and television on Tuesday says there is no need to panic as people would be able to deposit these currency notes in their bank account until December 30. (AP Photo/Rajesh Kumar Singh, File)

We need to take a new substantial step to fight black money. From now on, Rs. 500 and Rs. 1000 notes will not be in used.
All Have the 50 days to turn them into the post offices and bank.

On November 9 and in some places on November 10, ATMs will not work for the first 72 hours, and government hospitals accept the old Rs. 500 and 1000 notes till 11 November 2016.

In petrol pump and retailers have to keep every single entry of cash transaction with 500 and 1000 Rs notes till 11 November. Crematoriums will also be allowed to the transaction of Rs. 500 and Rs. 1000 notes till the 11 November 2016.

There is no change in any other form of currency exchange in cheque. DD, payments via credit cards or debit cards, etc.

Those unable to deposit Rs. 500, Rs. 1000 notes by December 30 for some reason, can change them before March 31, 2017, by furnishing ID proof.
Notes of Rs. 2000 and Rs. 500 will be circulated soon, and RBI has decided to limit the notes with higher value.

The currency notes have in used Notes & coins of Rs 100, Rs 50, Rs 20, Rs 10, Rs 5, Rs 2 and Re 1 will not be impacted.

rs-1000-rs-500-notes-demonetised-pm-modi-gets-brickbats-bouquets-over-surgical-strike-on-black-money

Questions answered by the RBI

[1] Why this scheme?

The incidence of fake currency notes in India in higher denomination has increased. The fake notes look similar to original notes, even though no security features has copied. The fake notes have used for anti-national and illegal activities. The misuse of high denomination notes by terrorists and for hoarding black money. India remains a cash-based economy, the circulation of fake Indian currency notes continue.

[2] What is this scheme?

The legal tender role of the notes in denominations of Rs 500 and Rs1000 stands withdrawn. Withdrawn of old high denomination (OHD) notes cannot use for transacting business and store of value for future usage. The OHD notes can exchanges for value at any of the 19 offices of the Reserve Bank of India or any of the bank branches or any Head Post Office or Sub-Post Office.

[3] How much value will you get?

You will get value for the entire amount of notes tendered at the bank branches / RBI offices.

[4] Can you get all in cash?

No. you will not get all in cash. You will get up to Rs 4000 per person in cash irrespective of the volume of tender and anything over and the above that will be payable by way of credit to the bank account.

[5] Why you cannot get the entire amount of cash when you have surrendered everything in cash?

The Scheme of withdrawal of the old high denomination(OHD) notes does not provide for it, given its objectives.

[6] What to do? If Rs 4000 cash is insufficient for your needs.

You can use balances in bank accounts to pay for other requirements by cheque. And also through the electronic means of payments such as Internet Banking, IMPS, mobile wallets, credit/debit cards, etc.

[7] What if you don’t have any bank account?

You can always open a bank account by approaching a bank branch with necessary documents required for fulfilling the KYC requirements.

[8] What if, if you have only JDY account?

A JDY account holder can avail the exchange facility subject to caps, and other laid down limits in accord with procedures and norms.

[9] Where can you go to exchange the notes?

The exchange facility is available at all Issue Offices of RBI and branches of commercial banks/UCBs/RRBS/State Co-op banks or any Head Post Office or Sub-Post Office.

[10] You have to go in bank branch only?

For the exchange of Rs. 4000 in cash, you can move to any branch with the valid identity proof.

For transfer over 4000, which will be accorded in credit to Bank account only, you may go to any branch you have an account and to any other branch of the same bank.
You want to go to a branch of any another bank where you are not maintaining an account, and you have to furnish valid identity proof and bank account details required for electronic fund transfer to your account.

[11] You Can go to any branch of any other bank?

You can go to any branch of any other bank. Have to furnish valid identity proof for the exchange cash both the valid identity proof and bank account details needed for electronic fund transfer in case the amount to be transferred exceeds Rs 4000.

[12] If you have no account but your relative or friend has an account, you will exchange into that account?

Yes, If the account holder relative/friend, etc. gives you permission in writing. While exchange, you have to provide the bank, evidence of permission granted by the account holder and your valid identity proof.

[13] You go to the bank personally, or you send the notes through your representative?

Personal visit to the branch is preferable. It is not granted for you to visit the branch you can send your representative with an express mandate (written authorization letter). The representative produces authority letter and valid identity proof while tendering the notes.

[14] Can you withdraw from ATM?

It will take a time for the banks to recalibrate their ATMs. Once the ATMs start functional, you can withdraw from ATMs up to a maximum of Rs.2,000/- per card per day up to 18th November 2016. The limit will be raise to Rs.4000/- per day per card from 19th November 2016 onwards.

[15] Can you withdraw cash against cheque?

Yes, you can withdraw money toward withdrawal slip or check subject to the ceiling of Rs10,000/- in a day within an overall limit of the Rs.20,000/- in a week for the first fortnight up to 24th November 2016.

[16] You Can deposit withdrawn notes through ATMs, Cash Deposit Machine or cash Recycler?

Yes, OHD notes can be deposited in Cash Deposits machines or the Cash Recyclers.

[17] You Can make use of electric mode?

You can use NEFT/IMPS/RTGS/Internet Banking/Mobile Banking or any electric/ non-cash mode of payment.

[18] How much time do I have to exchange the notes?

The system closes on 30th December 2016. The OHD banknotes can exchange at branches of commercial banks, Urban Cooperative Banks, Regional Rural Banks, State Cooperative Banks, and RBI until 30th December 2016.

For those who are unable to exchange their Old High Denomination Banknotes on and before December 30, 2016, an opportunity will be given them to do so at specified offices of the RBI, also with the necessary documentation as may be specified by the Reserve Bank of India.

[19] If you are not in India right now, what should you do?

If you have OHD banknotes in India, you give the authorise in written enabling another person in India to deposit the notes into your bank account. The person authorized has to come to the bank, with the authority letter given by you and a valid identity proof.

[20] If you are NRI and hold NRO account, can the exchange value be deposit in your account?

Yes, you can deposit the OHD banknotes to your NRO account.

[21] If you are on foreign tourist, If you have these notes. What should you have to do?

You can buy foreign exchange equivalent to Rs 5000 using these OHD notes at airport exchange counters within the 72 hours after the notification, provided you present proof of buying the OHD notes.

[22] If you have emergency needs of cash (hospitalisation, travel, life-saving medicines) then what you should do?

You can use the notes for paying for hospitalization charges at government hospitals, Bus tickets at government bus stands for travel by the state government or State PSU buses, Railway stations tickets and air tickets within 72 hours after the notification.

[23] What is proof of identity?

Valid Identity Proof is any of the following: Aadhaar Card, Driving License, Pass Port, NREGA Card, Voter ID Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its Staff.

About the New Currency Notes

Very soon Rs. 2000 currency notes will be made available for usage. It will display the image of Mangalyan launch. The image of the new Rs. 2000:

2000
The new version of Rs. 500 will be available for usage by the Indian government. The image of the new Rs. 500 currency note bearing red fort in the background:

500
The new notes are expected to chip-enabled which will store information on how each note have been circulated.

Who and what may impacted because of decision?

queue-outside-atm-afp

1. Although the decision is for the whole country, it might affect individuals/businesses who accept/use cash only.

2. Share market is to see the impact due of this decision. Stock prices will get shoot higher.

3. Rupee will strengthen as the time passes. Reflation will go down which will benefit poor and middle-class people.
4. Those who have limited currency note of lower denomination will have to face trouble while purchasing items like vegetables, groceries, and others.

5. Rise in plastic money like the credit card, debit card, online transactions.
New opportunities will open up for poor and middle-class
people.

6. More businesses will be organized those who take paper money only such as jewelers, hotels, etc.

7. Abroad travelers who may not visiting India in the near time may suffer.

8. Investments in gold and jewelry will increase as trust on currency will go down. Many people will convert paper into gold. It will eventually increase investment in government’s gold.

9. ATM withdrawal will have the limit, it will result in additional charges for those who use it multiple times.

10. Shortage of Rs. 100 notes will increase.

Nikhil Pillai

Nikhil Pillai is the co-founder at Digito Private Limited. He is a digital marketing veteran with a lot of experience and expertise in developing websites too. He is mostly a vivid reader and loves to travel a lot. Bikes and Football are his passions apart from watching movies that come with a twist.

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