Demonetization of Rs. 500 and Rs. 1000 notes: RBI

 

From midnight of November 8, 2016, Rs. 500 and Rs.1000 will cease to be legal tender. "These notes are just papers from tomorrow," says the prime minister.

Taking the nation by surprise, Prime Minister Narendra Modi on Tuesday night announced demonetisation of Rs. 1000 and Rs. 500 notes with effect from midnight, making these notes invalid in a major assault on black money, fake currency and corruption.

In his first televised address to the nation, Mr. Modi said people holding notes of Rs. 500 and Rs. 1000 can deposit the same in their bank and post office accounts from November 10 till December 30.

1.  Within this period, cheques, debit cards, e-transactions will continue. All electronic transations on account of business firms, companies and individuals will continue in the new two days: DEA secretary
2.  Initially, there could be inconvenience. The supply of new notes will be increased. First aspect to be considered is inflation. RBI will monitor and regulate the printing and circulation of Rs. 2000 notes.
3.  RBI shows the specimen notes of new Rs. 500 and Rs. 2000 notes.
4.  Banks will have video cameras for all trransactions, people must be careful while exchanging legal cash, says Shaktikanta Das.
5. RBI has been concerned about black money issue: Urijit Patel
6.  There is no restrictions on internet banking, cash, demand draft transactions.
7. He moves on from corruption to terrorism. He tells "terrorsists from across the border" are spreading counterfeit currency notes.
                                   
                                               pk's thought