Corruption is a deep-rooted problem in India. It won’t be right if I state that the world’s largest democracy is a poor country. The problem lies in the fact that majority of its riches are held in the form of black money. The prevalence of this serious issue has led to the emergence of an economic divide in the country with the rich getting richer and the poor getting poorer.
The existence of corruption in the Indian economy has always been a popular topic of discussion. But, there is a catch. Not anymore. In a surprise move, the government has announced the demonetization of 500 and 1000 rupee notes from 8 November 2016 midnight. This is apparently a powerful and decisive move to tackle to problem of black money.
This out of the blue bold move by the government has left people in a state of panic. So, here is a list of all that you need to know and do in the next few days.
WHERE CAN YOU EXCHANGE/DEPOSIT YOUR 500 AND 1000 RUPEE NOTES?
From 10 November 2016 till 30 December 2016 you can deposit the old notes at your nearest bank or post office accounts. But withdrawals from banks are capped at Rs 10,000 per day and Rs 20,000 per week. This limit will be increased in the coming days.
You can also exchange Rs 500 and Rs 1000 notes for lower denomination at banks, head post offices and sub-post offices. However, the exchange limit has been capped at Rs 4,000, and you can exchange till 24 November 2016. You will be required to produce valid government identity card like PAN, Aadhaar or voter ID card in order to do so.
If you are unable to deposit the old 500 and 1000 rupee notes till 30 December this year, then you can do the same in designated RBI offices until 31 March next year after filing a declaration form along with proof and reasons.
Banks will remain closed on 9 November 2016 to deal with the implications of this new directive.
WHAT ARE THE RESTRICTIONS ON ATM WITHDRAWALS?
WHERE CAN YOU STILL USE YOUR OLD 500 AND 1000 RUPEE NOTES?
Till 11 November 2016, the following government-authorized places and institutions will continue to accept Rs 500 and Rs 1000 notes for payment:
- Railway, airline, bus ticket booking counters
- Petrol, diesel and gas stations authorized by public sector oil companies
- Consumer co-operative stores
- Milk booths
- Crematoriums and burial grounds