In a major step to check black money, the government on Tuesday discontinued Rs 500 and Rs. 1000 currency notes. The announcement in this regard was made by Prime Minister Narendra Modi during his address to the nation. “From Midnight Nov 8, 2016 today, Rs500 and Rs1000 notes are no longer legal tender,” said Modi.

In January 1978, the Indian government had demonetised that 1,000, Rs 5,000 and Rs 10,000 notes in a bid to counter black money in the economy. The move had hit a lot of people who had hoarded money. The Rs 500 and 1000 currency notes must be deposited by the end of December at post offices and banks, he said, describing the move as essential to fighting “the disease of black money.”

The PM said that though India is now “a global bright spot” with its fast-growing economy, corruption, and black or undeclared money “are the biggest obstacles to our success.”

“We are among the fastest-growing economies, but we also rank so high in global corruption rankings,” he said in his speech. “Currency notes of Rs 1000 and Rs 500 will be just paper with no value,” the PM added.

“People can deposit notes of Rs 1,000 and Rs 500 in their banks from November 10 till December 30, 2016,” says PM. All other coins and notes to be continued.

New Rs 500, Rs 2000 Notes That Will Be Issued:

Rs 500 And Rs 1000 Notes Discontinued from Midnight:

https://www.youtube.com/watch?v=XjXnx6OH19c

https://www.youtube.com/watch?v=FIsNZWMiT78

Some of the Highlights from Modi Speech:

• Corruption and black money are diseases rooted in this country, they are obstacles to our success.
• We are among fastest-growing economies, but we also rank so high in global corruption rankings.
• Terror strikes at the innocent. Who funds these terrorists ? Across the border, our enemy uses fake currency and dodgy funds to sponsor terror – this has been proven repeatedly.
• Our measures to check black money are paying off. A voluntary disclosure scheme for undeclared money saw a good response. A Special Investigating Team is making progress to identify who has sent money abroad.
• 1.25 lakh crores of black money has been recovered so far.
• We need to take a new solid step to fight black money. From now on, Rs. 500 and Rs. 1000  notes will not be used. Have 50 days to turn them into banks and post offices.
• On November 9 and in some places on November 10, ATMs will not work.
• Respite for people for the initial 72 hours, government hospitals will accept old Rs. 500 and 1000 notes till 11 November midnight.
• Petrol pumps and retail outlets will have to keep every single entry of cash transaction with 500 and 1000 notes till November 11.
• Crematoriums and cemeteries will also be allowed to transact 500 and 1000 notes till November 11.
• There will be no change in any other form of currency exchange be it cheque, DD, payment via credit or debit cards etc.

As per media reports currently, fake currency in circulation in India is more than Rs 1,69,000 to 200,000 Crore. To give bribe everyone knows that currency notes of Rs. 500 and 1000 are used. What will happen if suddenly Government of India bans Rs.500 and Rs.1000 notes ?

Hats off to Modi’s decision. What do you think about this new rule. Do share your opinion about Rs. 500 and 1000 ban in the comment session below.