In what is being termed as the boldest move ever by an Indian government, Prime Minister Modi has announced that the existing legal notes of Rs. 500 and Rs. 1000 will cease to be valid from midnight of November 8, 2016.
This is being hailed as a significant blow to those who’ve amassed massive black money. The move also aims to thwart the growing problem of counterfeit currency.
Here are 5 key things you need to know and do over the coming few days:
- Deposit old notes of Rs. 500 or Rs. 1000 in bank or post office accounts between 10th November and 30th December, without any limit. However, there will be a limit in withdrawals – Rs. 10,000 per day and Rs. 20,000 per week.
- Exchange old notes of Rs. 500 or Rs. 1000 at any bank or post office while showing an ID Proof. The limit for this is Rs. 4000 and valid upto 24th November.
- All non-cash payments will continue as-is; there are no restrictions on them.
- On 9th November and in some places on 10th November, ATMs will not work.
- In the first few days, there will be a limit of Rs. 2000 per day per card. The government plans to raise this to Rs. 4000 later.
In order to minimize inconvenience, the government has also taken the following measures:
- For the next 72 hours (starting 8th November midnight), government hospitals will continue to accept the old Rs. 500 and Rs. 1000 notes.
- For the next 72 hours, railway ticket booking counters, ticket counters of government buses and airline ticket counters will continue to accept the old notes.
- The old notes will also continue to be accepted for the next 72 hours at:
- Petrol/diesel/gas stations that are authorized by public sector companies
- Consumer co-operative stores that are authorized by the State or Central Government
- Milk booths that are authorized by State Government
- Crematoria and burial grounds