Rs 500 and 1000 currency demonitised: PM Modi

Earlier in January 1978, currency notes in denominations of Rs 1,000, Rs 5,000 and RS 10,000 were demonetised.

By: Express Web Desk | New Delhi | Updated: November 9, 2016 12:08 am
narendra modi, modi, blackmoney, 500 notes, 1000 notes, valid rupee notes, invalid rupee notes, 100 rupee notes banned, 500 rupee notes banned, india news PM Modi during his national address on Tuesday (Source: Twitter/@ANI_news)

In a major step to check black money, the government on Tuesday discontinued Rs 500 and 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.

The prime minister said that corruption and black money is something the government has fought for immediately after assuming office.

Read:  Demonetising Rs 500, 1000 notes a very bold step to fight black money: RBI

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.

Then the move was part of the High Denomination Bank Note (Demonetisation) Act, 1978. It was termed as “an Act to provide in the public interest for the demonetisation of certain high denomination bank notes and for matters connected therewith or incidental thereto.”

In his 40-minute address, first in Hindi and later in English, the Prime Minister said the notes of Rs 500 and Rs 1000 “will not be legal tender from midnight tonight” and these will be “just worthless piece of paper.”

However, he said that all notes in lower denomination of Rs 100, Rs 50, Rs 20, Rs 10, Rs 5, Rs 2 and Re 1 and all coins will continue to be valid.

Read:  Rs 500 and Rs 1000 notes demolished: Here’s what to do with old notes

He also announced that new notes of Rs 2000 and Rs 500 will be introduced.

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.

Banks will remain closed tomorrow and ATMs will also not function tomorrow and day after, Modi said.

He 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.

Besides depositing money in bank accounts, the Rs 500 and Rs 1000 notes can also be exchanged with lower denomination currency notes at designated banks and post offices on production of valid government identity cards like PAN, Aadhaar and Election Card from November 10 to November 24 with a daily limit of Rs 4000.

Those unable to deposit Rs 1000 and Rs 500 notes till December 30 this year can do so in designated RBI offices till March 31 next year after filling a declaration form along with proof and reasons, the Prime Minister said.

Rs 500 and Rs 1000 notes will be valid for transactions related to booking of air tickets, railway bookings, government bus ticket counters and hospitals till the midnight of November 11 and 12.

“Banks will be closed tomorrow. It will cause some hardship to you….Let us ignore these hardships… In country’s history, there comes a moment when people will want to participate in the nation building and reconstruction. Very few such moments come in life,” Modi said.

While making the announcement, the Prime Minister said the sweeping measures were aimed at curbing the “disease” of corruption and black money which have taken deep root.

“There is a need for a decisive war against the menace of corruption, black money and terrorism… Corruption, black money and terrorism are festering wounds which make the country hollow from within,” he said, adding such activities hold back the nation’s progress.

Describing illegal financial activities as the “biggest blot”, Modi said that despite several steps taken by his government over the last two-and-a-half years, India’s global ranking on corruption had moved only to 76th position from 100th earlier.

“This shows the extent of the web of corruption in the country. The disease of corruption is the domain of some veted people who are flourishing. Some people have misused their positions and benefitted. On the other hand, honest people are suffering,” he said.

He linked fake currency to terrorism and questioned how enemies of the countries are using such methods to harm India.

“We have to get rid of this termite of corruption,” he said.

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  1. A
    Akshat khandelwal
    Jan 14, 2017 at 5:59 am
    According to me our hon. PM Mr.Narendra Modi has taken a big step towards reducing or you can say controlling one of the major problems of free India i.e. 'Black Money'.But then also he shouldn't have issued a big note i.e. of Rs. 2000 . the w situation has both positive and negative impacts. I from my side feel that before implementing such a big decision , he should have ensured proper or full availability of new notes in the bank because dealing with such a huge potion is not a easy task for providing them enough money... but the decision will be remembered ...
    1. P
      poonam patel
      Jan 4, 2017 at 2:04 am
      I am proud of modi he has done very well and thanks for giving this essay
      1. S
        Suman Biswas
        Jan 16, 2017 at 10:57 am
        Post your opinion...
        1. C
          Charles kisku
          Nov 9, 2016 at 12:55 am
          Thanks modi ji I like this movement for the country.
          1. P
            Nov 8, 2016 at 7:20 pm
            It is a good move but done incorrectly. Scores of honest people have kept Rs 500 and very little lower denominationmoney in their homes for everyday emergency. Overnight you cannot use it to buy vegetables , everyday items tomorrow, This will cause lots of problems. There should a mechanism to slowly phase out the existing Rs 500 and Rs 1000 notes but overnight may be problematic. Many daily workers do not have bank accounts or Adhaar card to exchange their money. What is going to happen then? No easy way out for the lower middle cl and honest people who suddenly find all their emergency savings becoming worthless. There will be very long lines in banks . Can it be handled with such a large potion. Although in the long run, the idea is great
            1. R
              Nov 9, 2016 at 4:03 am
              Modi sir we are proud of you...
              1. S
                Shamik saha
                Nov 11, 2016 at 11:19 am
                Very good idea my dear pm sir
                1. S
                  Nov 9, 2016 at 4:18 am
                  I appreciate the idea of mr. Modi accept for the area that the maximum withdrawal from atm is 2000 per day and from the bank, it is 10000 per day. Its such an immature idea. He should do more research on peaple's need.
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