Business Security

Rs. 500, Rs. 1000 currency notes to be out of circulation from midnight

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Written by techmanish

From midnight today, till November 10, ATMs will not function. Banks will be closed for public transactions tomorrow.

The Union Government has decided to do away with Rs. 500 and Rs. 1000 currency notes from midnight on Tuesday. These notes will cease to be legal tender from the midnight of November 8, 2016, announced Prime Minister Narendra Modi in his address to the nation on Tuesday. “These notes will only be papers from tomorrow,” he said in Hindi, adding that the move is to curb circulation of counterfeit notes and fight blackmoney.

People who posess currency notes of these denomination can exchange them in banks and head and sub post offices from November 10 to December 30, by providing a valid proof for identity such as Aadhar card, PAN card or voters ID card.

Post December 30, these notes will be accepted only by the Reserve Bank of India after submitting a declaration.

From midnight today, till November 10, ATMs will not function. Backs will be closed for public transactions tomorrow.

For a few days, only upto Rs. 2000 can be withdrawn from ATMs. This will be enhanced to Rs. 4000 later. The withdrawal limit for ATM will eventually be fixed at Rs. 10,000 per day and Rs. 20,000 per week.

There are some exemptions: Government hospitals, pharmacies at Government hospitals, public sector-run petrol bunks, and burial grounds.

Airports will make arrangements to inform international travellers that the cash limit is Rs. 5000.

This move will not affect debit cards, cheque and digital transfer of money.

All other denominations such as Rs. 100, Rs. 50, Rs. 10, Rs. 5, Rs. 2 and Re. 1 as well as coins will continue in circulation unaffected.

In an unusual televised address, as the NDA government completes two-and-a half years rule on Tuesday, Mr. Modi said Rs. 500 and Rs. 1000 denominations are mostly counterfeited “from across the border.”

“We have brought back Rs. 1,25,000 crores of blackmoney from corrupt people through various means,” the Prime Minister said.

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