PM Narendra Modi on Tuesday announced scrapping of Rs 500 and Rs 1,000 notes. The surprise step appears to be designed to bring billions of dollars worth of cash in unaccounted wealth into the mainstream economy. The demonetisation drive of these two currency units was taken to root out the menace of black money and fake currency from the country. The currency notes of 100, 50, 20, 10, 5, 2 and 1 rupee will remain unaffected by this decision and remain legal tender.
Indian government believes that by taking this decision we can hit black markets.
Where to Exchange:
Persons who holding old 500, Rs. 1,000 notes must deposit these notes in their bank or post office accounts from 10th November till 30th December 2016 without any limit. Those who are not able to deposit 30th December 2016 can go to the specified offices of RBI up to 31st March 2017 and deposit the notes after submitting a declaration form. However, for immediate needs, old 500, Rs. 1,000 notes can be exchanged in any bank, head post office or sub post office by showing identity proof like Aadhaar card, voter card, ration card, passport, PAN card or other approved proofs.
The limit for such exchange will be four thousand rupees till 24th November, and will increase from 25th November till 30th December 2016. The Reserve Bank of India (RBI) will issue new 500 and Rs. 2,000 notes from 10 November 2016. There will no restrictions of any kind on non-cash payments by cheques, demand drafts, debit or credit cards and electronic fund transfer.
New 500, 2000 Rupee Notes:
Instead of 500 and 1000 Rupee notes RBI will be issuing 2000 rupee notes which will be a regular currency circulation over India. The Reserve Bank has issued new series of notes for 500 rupees and 2,000 rupees denomination with improved features and newer sizes.
2,000 rupees note:
- It will be for the first time 2,000 rupees note denomination has been issued.
- It will be called as the ‘Mahatma Gandhi (New) Series’.
- The base colour of the note is magenta.
- Size of the new note is 66mm*166mm.
- It has a motif of the Mangalayan, the low-cost mission of ISRO to Mars on the reverse side and Mahatma Gandhi on front side.
- Denominational numeral 2000 in Devanagari.
- Micro letters 'RBI' and '2000'.
- Colour shift windowed security thread with inscriptions 'Bharat', RBI and 2000.
- Colour of the thread changes from green to blue when the note is tilted.
500 rupee note:
- It has different colour, size, theme, design and location of security features compared to the old notes.
- It has portrait and electrotype watermarks.
- It will be in a stone grey in colour.
- The size of the new note is 63mm x 150mm.
- The colour of the notes is stone grey and the predominant new theme is Indian heritage site - Red Fort.
- Orientation and relative position of Mahatma Gandhi portrait changed.
- Swachh Bharat logo with slogan.