Image : RBI Website 8 Nov 2016
Prime Minister Narendra Modi has announced that the use of Rs 500 and Rs 1,000 notes will be illegal from midnight. Modi further announced that these notes have to be deposited at the nearest post office or bank by the end of December this year. It is a bold move, and the PM says that it was necessary to fight the “disease of black money.”
There’s especially a lot of reactions on the banks and ATMs remaining shut for the next two days. For those worried, while the use of Rs 500 and Rs 1,000 notes are illegal from midnight, they will still be accepted in cases of emergencies. For the next 72 hours these notes can be used for transactions at government hospitals, petrol pumps, crematoriums and cemeteries.
In a major assault on black money, fake currency and corruption, he said, "You have 50 days (From 10 November to 30 December) to deposit notes of Rs 500 and Rs 1000 in any bank or post office."
"Currency notes of Rs 1000 and Rs 500 will be just paper with no value. These notes should be exchanged in banks and post offices within December 30, 2016," PM reiterated.
Image : RBI Website 9 Nov 2016
"There will be respite for people for the initial 72 hours, government hospitals will accept old Rs 500 and 1000 notes till 11 November midnight. On November 9 and in some places November 10, ATMs will not work. There will be no change in any other form of currency exchange be it cheque, DD, payment via credit or debit cards etc," he pointed out in his 40-minute address, first in Hindi and later in English.
"On November 9, all banks will remain closed for public work," he further said, adding, "Notes of Rs 2000 and Rs 500 will be circulated soon, RBI has decided to limit the notes with higher value."
"Those unable to deposit their notes of Rs 1000 and Rs 500 by December 30 for some reason, they can change the notes till March 31, 2017 by furnishing ID proof," he revealed.
ATM withdrawals will be restricted to Rs 2000 per day and this will be raised to Rs 4000 later. Withdrawals from bank accounts will be limited to Rs 10,000 a day and Rs 20,000 a week. This limit will be increased in the coming days.
Banks will open additional counters and work for additional hours to deal with the rush of people wanting to deposit or change notes.
PM 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.
Multiple
attempts to access the Reserve Bank of India website by Gadgets 360 between
10:30pm and 11:20pm IST on Tuesday night were greeted by the "Cannot find
server" message, which indicates the RBI website cannot handle the heavy
demand. Now, sure, this can also be the result of a scheduled maintenance, but
you would typically see a "This website is under maintenance" kind of
a message from a website like the Reserve Bank of India, instead of an error
message like this.
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