Indian economy is banned from Currency notes of Rs 500 and Rs 1000 denominations from 9th Nov 2016. Government has decided to implement the ban in order to curb the negative impact of fake currency, black money, corruption and terrorism on the nation’s economy.
Now the value of these two denomination will not be having any legal tender from midnight of 08th November. Transaction with these denomination will be invalid except Hospital, Medical, Government department, Railways station, airport where it is valid till 11th Nov.
- From November 10 to 24 old notes upto Rs 4000 in value can be exchanged. After Nov 25 this limit will be raised. You need to take your ID cards along.
- Old notes can be deposited in banks or post offices from Nov 10 to Dec 30 till close of banking hours.
- Withdrawal of new notes will be limited to Rs 10,000 per day and Rs 20,000 per week initially
- You can exchange old notes at designated offices of the RBI after submitting a declaration form and showing your ID card up to 31.3.2017.
- New denomination of Rs 2000 and Rs 500 will be launched.
These steps are implemented by government to curb the black money, Fake note etc in order to strengthen the economy. In order to curb it completely RBI already has advised to
- Keep a list of the serial numbers of the notes submitted /exchanged at banks as accepting bank/post offices will keep track of these notes.
- Income tax department will be taking a look at who is submitting how much so exchange. So, only deposit the amount which you may explain to the tax department later.