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Your Rs500, Rs1,000 notes now just worthless pieces of paper

Your Rs500, Rs1,000 notes now just worthless pieces of paper
Taking the nation by surprise, Prime Minister Narendra Modi on Tuesday night announced demonetisation of Rs 1000 and Rs 500 notes with effect from midnight, making these notes invalid in a major assault on black money, fake currency and corruption.

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. 

In his 40-minute address, first in Hindi and later in English, the Prime Minister said the notes of Rs 500 and Rs 1000 “will not be legal tender from midnight tonight” and these will be “just worthless piece of paper.” However, he said that all notes in lower denomination of Rs 100, Rs 50, Rs 20, Rs 10, Rs 5, Rs 2 and Re 1 and all coins will continue to be valid.

He also announced that new notes of Rs 2000 and Rs 500 will be introduced. ATM withdrawals will be restricted to Rs 2000 per day and withdrawals from bank accounts will be limited to Rs 10,000 a day and Rs 20,000 a week. Banks will remain closed on Wednesday and some  ATMs will also not function on Wednesday and Thursday after as RBI stocks banks and ATM machines with lower denomination notes, Modi said.

He expressed confidence that the staff of banks and post offices will rise to the occasion to introduce the new order within the available time.

He also expressed confidence that political parties, workers, social organisations and the media will go further than the government in making it a success. 

Besides depositing money in bank accounts, the Rs 500 and Rs 1000 notes can also be exchanged with lower denomination currency notes at designated banks and post offices on production of valid government identity cards like PAN, Aadhaar and Election Card from November 10 to November 24 with a daily limit of Rs 4000.

Those unable to deposit Rs 1000 and Rs 500 notes till December 30 this year can do so in designated RBI offices till March 31 next year after filling a declaration form along with proof and reasons, the Prime Minister said.

Rs 500 and Rs 1000 notes will be valid for transactions related to booking of air tickets, railway bookings, government bus ticket counters and hospitals till the midnight of November 11 and 12.

“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 on Tuesday. While making the announcement, the Prime Minister said the sweeping measures were aimed at curbing the “disease” of corruption and black money which have taken deep root.“There is a need for a decisive war against the menace of corruption, black money and terrorism... Corruption, black money and terrorism are festering wounds which make the country hollow from within,” he said, adding such activities hold back the nation’s progress.

Describing illegal financial activities as the “biggest blot”, Modi said that despite several steps taken by his government over the last two-and-a-half years, India’s global ranking on corruption had moved only to 76th position from 100th earlier.

“This shows the extent of the web of corruption in the country. The disease of corruption is the domain of some veted people who are flourishing. Some people have misused their positions and benefitted. On the other hand, honest people are suffering,” he said.

Here is what you can do

  • Deposit old notes of Rs 500 or Rs 1,000 in bank or post office accounts from 10th November till 30th December, 2016, without any limit. There will be a limit on withdrawal of Rs 10,000 per day and Rs 20,000 per week. This limit will be increased in coming days
  • Exchange old notes of Rs 500 or Rs 1,000 at any bank, head post office or sub- post office while showing ID proof. The limit for this is Rs 4,000 up to 24th November
  • On 9th November and in some places on 10th November also, ATMs will not work. In the first few days, there will be a limit of Rs 2000 per day per card. This will be raised to 4,000 later
  • Check out RBI notification for more details 
  • No restriction on any kind on non-cash payments by cheques, demand drafts, debit or credit cards and  electronic fund transfer
People friendly measures inconvenience

  • For 72 hours, govt hospitals will continue to accept old Rs 500 and Rs 1000 notes for payment
  • For 72 hours, railway ticket booking counters, ticket counters of govt buses and airline ticket counters at airports will accept the old notes for purchase of tickets
  •  For 72 hours, old Rs 500 and Rs 1000 notes will be accepted at:
      1. Petrol, diesel and gas stations authorised by public sector oil companies
      
      2. Consumer co-operative stores authorised by State or Central Government 
      
      3. Milk booths authorised by State government 
       
      4. Crematoria and burial grounds
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