Key Points to Remember about Discontinuation of 500 and 1000 Rupees Notes

2016-11-09 Wed

Prime Minister addressed the nation on Doordarshan at the end of the day on 8th November 2016 about the discontinuation of 500 and 1000 Rupees notes.

He met the three chiefs of the armed forces - Army Chief Dalbir Singh, Navy Chief Sunil Lanba and Indian Air Force Vice Chief BS Dhanoa - to review India's security following the tension with Pakistan.

Below are some key points from the speech:

1. Poverty can be tackled by getting rid of corruption and black market

2. India is a bright growing global economy as claimed by IMF but is at Number 70 on the corruption index.

3. Fake currencies are used to fund terrorism from across the border

4. Many measures have already been taken to curb black money

Rs 500 and Rs 1000 notes will be invalid from November 8 midnight.

5. You have 50 days (From 10 Nov to 30 Dec) to deposit notes of Rs 500 and Rs 1000 in any Bank or Post office.

6. On November 9 and in some places, on November 10, the ATMs will not work

7. ATMS will limit money to Rs 2,000 a day initially.

On November 9th, all banks will remain closed for public work.

8. Other forms of currency exchange like cheque, DD, payment via credit or debit cards etc will continue the way it was earlier

Following are the highlights of what the RBI announced:

1. As of today and over past months, we have ramped up production

2. There have been reports that lots of law enforcement agencies have been getting that money has been used to fund terrorism

3. RBI has been concerned over the growing fake Indian currency notes

4. Between 2011 and 2016, the circulation of Rs. 500 notes has gone up by 76% and Rs. 1000 by 109%, but the economy has only expanded by 30%

5. Please do not allow yourself to be used by anybody else to exchange illegal cash. You are free to do that for your friends and relatives and family.

6. Other denomination notes will also be issued over a period of time, including Rs. 1000 notes

Other key points to remember:

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

2. If you want to get Rs. 500 and Rs. 1000 notes exchanged in cash, you will get up to Rs. 4000 per person irrespective of the size of tender and anything over and above that will be receivable by way of credit to the bank account. This limit of Rs 4000 is applicable from 10th November to 24th November 2016. From 25th November 2016, this limit would be increased.

3. Old 500 rupees notes and 1000 rupees notes can be exchanged with legal notes at post offices or banks by submitting your valid ID proofs between 10th November to 30th December 2016. Those who are unable to do so will have to deposit the cash at specific offices of RBI along with a declaration form till 31st March 2017.

4. From 10th November to 30th December 2016 there would be a limit of rupees 10,000 per day and Rs. 20,000 per month that can be withdrawn from the bank. Going forward the limit would be eased slowly.

Related links:

India fights corruption: One Move and Checkmate!

Rupees 500 and Rupees 1000 banknotes Become Invalid After Midnight 8th November 2016

New security features on INR 2000 and INR 500 currency notes

Rumour alert: No Nano GPS Chip on New 2000 Rupees Notes

New Notes New Designs