RS 500 & 1000 NOTES BANNED

(Demonetization completed one week. Click here to know about the new rules government has issued)

Ok for the first time when many of us listened to the news that the government is going to get rid of 500 and 1000 notes it sounds like a hoax or prank. But unlike the messages which get circulated only over the whatsapp, this news is confirmed by our Honorable Prime Minister Mr. Narendra Modi. From sharp 8 P.M. on 08/11/2016 the news channels got filled with this news confirming that it is not a hoax and from 12 P.M. that is after 4 hours the big notes in your pockets will be illegal to use.

But there is no need to PANIC as our government is preparing for months to implement this. If you remember than Reserve Bank of India from May 2016 has started to distribute 100 Rupees notes in the market, as currency under 500 will remain unaffected.

Reserve Bank introduced "Currency Distribution and Exchange Scheme (CDES)" under Clean note policy. Under this scheme 

1. RBI gave incentive to banks to exchange damage notes and to         provide ATMs providing 100 Rupees notes.

2. RBI promotes to repay 50% money spend by the bank to open         Currency Chest in area consist of 100000 population.

3. 50% money spend by bank to open ATMs in metro and other           cities & 60% for rural areas for providing 100 Rupees notes or         lesser will be paid by RBI.

4. After 1st November RBI ordered banks to open 10% ATMs             which will give 100 Rupees notes and to increase the circulation     of 100 Rupees note.

5. RBI continuously monitored and announced to imposed penalty       on banks not following the guidelines.

EIGHT MAJOR DECISIONS-

1. CLOSING BANKS AND ATM- 

Banks will be closed for today (09/11/2016) and ATM for two days (09 to 10 of november). As it will take some time for banks to organize the system of changing the notes.

2. EXCEPTION FOR 72 HOURS-

These notes can still be use in Hospitals, Petrol & CNG stations, Railway counter & International airports for 72 hours that is till the midnight of 11 November.

3. EXCHANGING NOTES-

From 10th November to 30th of December these notes can be exchanged in Post Offices & Banks by showing any Govt provided ID proof. However 4000 Rupees is the present limit per day which will increase in future. You can also deposit your old notes in your Bank or Post Office account. .

4. NOT AFFECTING CURRENCY-

Notes from 1 to 100 rupees will be unaffected.

5. TIME LIMIT-

From 10 to 24th of November, 4000 Rupees of 500 and 1000 Rupees notes can be exchanged. After 24th November the limit of 4000 Rupees will be increased. Till 30th of December people can exchange there old notes. Those who will miss this opportunity will get a last chance too, they can change there old notes after 30th of December from RBI by giving a affidavit till march 2017.

6. WITHDRAWAL FROM ATM-

When ATM will open only 2000 Rupees can be withdrawal per day which will increase to 10000 Rupees per day and 20000 Rupees per week.

7. FOR INTERNATIONAL TRAVELERS-

People going outside India or coming to India at present will be provided to exchange 4000 Rupees with the new legal currency of India.

8. OTHER TRANSACTIONS-

Payments through Cheques, Demand Drafts or online will remain affected and no restrictions are imposed on them.

(CLICK HERE TO READ ABOUT THE NEW NANO TECHNOLOGY IN 2000 RUPEE NOTE)

PROBLEMS-

1. Long queues outside the ATM after decisions and is expected to       remain same for some period of time.

2. Many shopkeepers, Petrol Pumps and small hospitals may refuse     to take old notes.

3. People travelling inside the country can also face major issue if       hotel, shops or restaurants will not accept the old notes.

4. Patients in hospitals may face some problems.

5. At present 1650 crore of 500 rupees and 670 crores of 1000             rupees are there in the market which are used for daily payments,     they may get affected. 

6. Wedding season is going people may face problems in cash             payments which is more comman in our country.

7. Purchasing through cash in the real estate will face a fall.


It is true that we will have to face problems but these problems are short terms and the relief provided will be long term. It is the time for our country to stand together with our Government and help in making our country prosperous without getting panic.