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Prime Minister Narendra Modi had announced the demonetisation of Rs 1000 and Rs 500 notes, which will take effect at midnight. As of 31 December 2016, these notes are no longer valid. Aside from that, the government has reduced cash withdrawal limits at banks and ATMs. The move is being viewed as a major assault on black money, counterfeit currency, and corruption.
The 1,000 and 500 rupee notes will cease to be legal tender at midnight tonight, and those in possession of these notes can deposit them in banks and post offices from the 10th of this month to the 30th of this year.
Read: Rs 500 and Rs 1000 notes are being phased out:
Here are the top five things the RBI wants you to know:
- 1) Why was the scheme implemented? The use of counterfeit Indian currency notes in higher denominations has increased. Even though no security features have been copied, the fake notes appear to ordinary people to be genuine notes. The counterfeit notes are being used for anti-national and illegal activities. Terrorists and criminals have used high denomination notes to hide money
- 2) What exactly is this scheme? The legal tender status of existing bank notes in denominations of Rs 500 and Rs 1000 issued by the Reserve Bank of India until November 8, 2016 (hereinafter referred to as Specified Bank Notes) has been revoked. As a result, these bank notes cannot be used for transacting business or storing value for future use. These bank notes can be exchanged for cash at any of the Reserve Bank of India’s 19 offices, bank branches, or any head post office or sub-post office
- 3) How much will the old notes be worth?The entire volume of notes tendered at bank branches/RBI offices will be valued
- 4) Can I get cash for all of my old bills?No. Regardless of the size of the tender, you will receive up to Rs 4000 in cash per person. Anything more than that will be credited to bank accounts
- 5) Why can’t I get the full amount in cash after surrendering everything in cash?Given its objectives, the scheme does not provide for it
“Exchanging old notes”
Now that the legal tender status of notes in denominations of Rs 500 and Rs 1,000 has been withdrawn, you must be preparing to visit the bank to exchange the old currency lying around your home. It is critical that you make some notes while doing so.
To exchange old notes for new ones, the bank requires you to fill out a few forms and attach a photocopy of your valid identity proof.
Take care.
When submitting a photocopy of your ID proof to the bank or post office, make sure to include the date and the fact that it is being submitted for the purpose of exchanging old notes.
Demonetization of 500 and 1000 rupees notes announced India
Have you ever wondered what became of your demonetized Rs 500 and Rs 1,000 notes? The old money is being recycled into cardboard Briquettes made of Rs 500 and Rs 1000 notes.
The old money is being turned into cardboard!
The Reserve Bank of India shreds old currency, which is then converted into cardboard, stationery, and souvenirs in a factory in Lucknow.
On November 8, Prime Minister Narendra Modi declared the Rs 500 and Rs 1,000 notes invalid, and the following day, people began forming long lines outside banks to deposit the old currency.
Are banks equipped to replace all old notes of Rs 500 and Rs 1,000?
- The total outstanding currency in circulation in the Indian economy as of October 28 was Rs 17.77 lakh crore, according to Reserve Bank of India data. As of March 31, 2016, this figure was Rs. 16.42 lakh crore
- As of March 31, 2016, the total value of bank notes in circulation was Rs 16.42 lakh crore, with Rs 500 and Rs 1,000 notes accounting for Rs 14.18 lakh crore, or more than 86 percent
- In terms of volume, out of the total 9026.6 crore banknote pieces, 2,203 crore (24%+) were of the Rs 500 and Rs 1,000 denomination
- The replacement of approximately 2,300 crore banknote pieces will be a logistical nightmare.The vast majority of this is likely to be deposited in banks rather than exchanged for lower denomination notes
Conclusion
The 1,000 and 500 rupee notes will cease to be legal tender at midnight tonight, and those in possession of these notes can deposit them in banks and post offices from the 10th of this month to the 30th of this year. The legal tender status of existing bank notes in denominations of Rs 500 and Rs 1000 issued by the Reserve Bank of India until November 8, 2016 (hereinafter referred to as Specified Bank Notes) has been revoked. Given its objectives, the scheme does not provide for it.”Exchanging old notes” Now that the legal tender status of notes in denominations of Rs 500 and Rs 1,000 has been withdrawn, you must be preparing to visit the bank to exchange the old currency lying around your home. To exchange old notes for new ones, the bank requires you to fill out a few forms and attach a photocopy of your valid identity proof.
