It is a master stroke. A very bold, instant and a well-planned one. A best decision taken by the government of India and the Prime Minister Narendra Modi. Hats off for successfully keeping this news a very secret till the last moment so that people with black money will not find sufficient time or alternate ways to make their black cash white easily that too in a window of just about 50 days. This is a chance every Indian could make use of to support the fight against corruption alongside the government. The sudden announcement although created some problems to the common man it is we’ll worth the pain when considering the future gain. The prime minister firstly encouraged every citizen to own a bank account first and now forced everyone to submit their cash in their bank for accountability.
New 2000 Note
The System has an approximate of 68 % (500 notes 44% &. Rs.1000 notes 24%) money in 500 and 1000 denomination that are fake. Recent reports say that currently fake currency circulation in India is approximately 200,000 Crores.
What are the benefits from this movement to the country?
- This Move helps the country become corruption free
- Fake notes will be abolished from the system.
- Huge disaster for who is possessing black money.
- Terror funds in hard cash gets squeezed.
- Just a beginning of the end of black money in India & Black money hoarders will be hit hard.
- Rupee will strengthen as the time passes. Inflation will go down which will benefit poor and middle class people.
- Investments in gold and jewelries will increase as trust on currency will go down.
- Digital transaction will rise. ( plastic money like debit card, credit card, online transactions will increase)
- The political parties will face big money crisis for upcoming UP, Punjab and other elections.
- Real estate prices will come down.
- Credit (loans) will become easier and interest rates may come down
In developed nations 90% transactions happen through banking system. In India approximate 20% transactions happen through banking system. Now this change will force more people towards banking and digital transactions.
Summary of the important announcement made by PM:
- Rs 500 and Rs 1000 notes will cease to be legal tender from the midnight of November 8, 2016.
- Deposit existing notes of Rs 500 and Rs 1000 in banks or post offices between November 10 and December 30, 2016. If you can’t now then you can visit RBI offices to exchange till March 31, 2017
- 9th November, banks wouldn’t be open for public banking services
- Initially you can withdraw from an ATM with a limit of Rs 2000 per day per ATM card.
- ATM’s will not work on 9th and at some places on 10th November as well.
- Up to Rs 4000 can be exchanged at any bank or post office by producing valid ID proof.
- Old Rs 500, Rs 1000 notes will be accepted at hospitals, drug stores, airline ticket booking, train ticket booking and petrol station till November 12.
- All Residents have option till 30th December 2016, to deposit their existing cash balance of 500 and 1000 rupees into their bank accounts.
- ATM withdrawal is limited post 11th Nov to 10000 per day, but initial few days it would be 2000 Rs. Only.
- There will be no changes in online, card, cheque or any other plastic money transactions.
- New notes of 500 rupees and 2000 rupees would come into full fledge circulation, mostly from 31st March 2017.
- Documents required while asking for exchange is ID proof like PAN card, Aadhaar card, election card from 10 Nov – 24 Nov. Daily exchange limit is capped at Rs. 4000. But there is no limit for depositing in the bank..
Image creadit : DonkeyHotey , .flickr.com
Excerpts from : timesofindia., Zee and other internet source
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of sociolobby)