Indian Government Banned Rs 500 and Rs 1000 Currency Notes in circulation with immediate effect. Prime Minister of India Mr. Narendra Modi has announced in address to nation that from midnight of 8th November 2016 currency notes of Rs 1000 and Rs 500 denomination will not be legal tender.
This is counted as the boldest step by head of any nation to curb the black money, fake currency and corruption menace. In true sense notes of Rs 500 & Rs 1000 lost its value which worth nothing from 09th November.
Government has announced that public would be given time till 30th December 2016 to exchange their existing Rs 500 and Rs 1000 notes with bank. It is also announced that there would be Rs 20,000 weekly cap on exchange of Rs 500 & Rs 1,000 notes.
New denomination of Rs 500 and Rs 2000 notes will be introduced in the market. Government has made it clear that maximum cap will be revised on ATM withdrawal i.e. Rs 2000 per card per day. Later that may be revised to Rs 4000.
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This is the boldest step to improve the economy and boost the cashless economy. All banks and ATM including Post office will be closed on 9th Nov for public for making arrangement for implementation of new monetary strategy.
Banning notes and arranging time frame for exchanging banned notes with bank , Government has found the unique way to catch the black money as the deposit in bank account for these days will be closely monitored by the Tax authorities.
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