“Your money will remain yours…you need have no worry on this account,” Says PM
NEW DELHI : In a sudden address to the nation, Prime Minister Narendra Modi has announced that starting midnight, existing Rs. 500 and Rs. 1,000 notes can no longer be used for any transactions.
They must be deposited, starting Thursday and through December 30, at post offices and banks, he said, describing the move as essential to fight “the disease of black money.” New Rs. 500 and Rs. 2,000 notes, cleared by the Reserve Bank of India, will be introduced on Thursday.
The new Rs. 500 and 2000 notes will be issued on November 10
“Your money will remain yours…you need have no worry on this account,” PM Modi said, stressing that the new notes will be in limited supply at first and will then be increased.
He spoke first in Hindi and then in English to share the details of the new policy.For now, notes currently in use can be traded for upto Rs. 4,000 till November 24 and for larger amounts thereafter. Against notes that are deposited, withdrawals of upto Rs. 10,000 a day or 20,000 a week will be permitted for now.
PM Modi, urging the country to bear with “temporary hardships” in the implementation of the new rule, said that banks will be closed to the public tomorrow and ATMs will not work in some places for the next 48 hours.
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 No 1 in rate of economic growth,” he said, while adding that despite some progress, India still ranks at No 76 in world rankings for perception of corruption.
PM Modi said that since his government was elected, 1.25 lakh crores of black money “belonging to the corrupt” has been uncovered, through a series of measures including a voluntary disclosure scheme which has seen a good response.
The PM said that fake currency is also being employed “by the enemy across the border” to sponsor deadly attacks. In a major assault on black money, fake currency and corruption, he said, “You have 50 days (From 10 November to 30 December) to deposit notes of Rs 500 and Rs 1000 in any bank or post office.”
“Currency notes of Rs 1000 and Rs 500 will be just paper with no value. These notes should be exchanged in banks and post offices within December 30, 2016,” PM reiterated.
“There will be respite for people for the initial 72 hours, government hospitals will accept old Rs 500 and 1000 notes till 11 November midnight. On November 9 and in some places November 10, ATMs will not work. There will be no change in any other form of currency exchange be it cheque, DD, payment via credit or debit cards etc,” he pointed out in his 40-minute address, first in Hindi and later in English.
“On November 9, all banks will remain closed for public work,” he further said, adding, “Notes of Rs 2000 and Rs 500 will be circulated soon, RBI has decided to limit the notes with higher value.”
“Those unable to deposit their notes of Rs 1000 and Rs 500 by December 30 for some reason, they can change the notes till March 31, 2017 by furnishing ID proof,” he revealed. ATM withdrawals will be restricted to Rs 2000 per day and withdrawals from bank accounts will be limited to Rs 10,000 a day and Rs 20,000 a week.
PM expressed confidence that the staff of banks and post offices will rise to the occasion to introduce the new order within the available time. He also expressed confidence that political parties, workers, social organisations and the media will go further than the government in making it a success.
