Rs 500 and Rs 1000 notes will cease to be legal tender from November 8 midnight, Prime Minister Narendra Modi announced in a televised address to the nation.
Here are highlights from his speech:
– From midnight, the Rs 500 and Rs 1000 will cease to be legal tender.
– The 500 and 1000 Rs notes can be submitted to the post offices and banks from 10th November to 30th December.
– Those who can’t submit the notes within the deadline, can exchange it at Reserve Bank of India by providing a declaration.
– On November 9 and in some places November 10, ATMs will not work.
– For 72 hrs, until Nov 11 midnight special arrangements made. All government hospitals will accept old 500 & 1000 notes.
– RBI’s proposal for new Rs 2000 note has been accepted.
– On November 9, all banks will remain closed for public work.
Source: Hindustan Times
This is an analysis of the decision by the Modi Government.
- This will help to curb corruption because most of the black money is there in the denominations of 500 and 1000.
- Fake currency notes get flowed into the economy in the denominations of 500 and 1000. This will help to curb this fake note flow from the other countries.
A major critical analysis to follow.
Litson K Stephen