Prime Minister Narendra Modi, in his 10 minute speech declared a strict action for banning 500 and 1000 rupee notes. And after knowing this probably all black money holder would have got heart attack – because all the money they hide are now just a piece of paper or if they deposit it to bank they need to pay income tax.
This is the most influencive decision taken by PM Modi and in near future the economy of India is going to boom.
This master stroke shot by PM Modi may take India to corruption less country in future. Let us see.
This announce has affected almost every citizen of India and all have started asking several question regarding the processing and all. RBI has understood this and released an exhaustive FAQ
Frequently Asked Questions after 500 and 1000 Rupee Notes Ban
1. Why 500 and 1000 rupee notes banned?
This sudden and strict decision has been taken to block the creation of fake Indian currency notes in higher denomination. And in general common man in the market fails to differentiate between original and duplicate currencies. Moreover, these duplicate currency notes are used for anti-national, illegal activities, misused by terrorist. In more general sense within the country politicians, businessmen’s, smugglers hide the higher denomination currency for not paying taxes.
But the India more cash based economy and does less online transaction. As now India is most fastest growing nation so few neighbor countries being jealous started producing the face Indian currency notes to decrease the economic growth of India. So at the moment Indian government decided to ban of 500 and 1000 rupee note and introducing new 500 and 2000 rupee notes.
2. What this mean “banned 500 and 100 rupee note in India”?
In a simple sentence, Indian Government has banned use of 500 and 1000 rupee note for any type of business. The store value of this currency is zero and now these will only considered as a useless paper. This decision has been taken by Modi’s Government to extract the black money out hidden by black money holders. You can read the 8 steps of PM Modi’s surgical strike against black money he just explained in his speech.
3. Are my Rs 500/1000 notes still worth?
Yes, everyone’s 500 and 1000 rupee notes are still worth and hold complete value but if you deposit it your bank account till 30 Dec 2016. For more information you can read PM Modi’s rupee revamp: Don’t worry your money stays your money.
4. If I deposit amount 1 lakh (combination of 500 and 1000 rupee note), will I get all in cash?
No, here is the problem. You can only get Rs. 4000 cash per person and rest would be credit to your bank account.
5. But if I need more than Rs 4,000 cash, what to do?
The scheme doesn’t permit, you can mobile wallets, online payment methods, IMPS, debit/credit cards, and you can also pay by cheque.
6. What to do if I don’t have any bank account?
Don’t worry; you have enough time i.e. till 30 Dec 2016 that counts to 50 days. So get a bank account opened at any bank of your choice. I suggest carrying necessary documents required for fulfilling the KYC requirements.
7. What if I have only a Jan Dhan account?
You can avail the exchange facility subject to the caps and other laid down limits in accord with norms and procedures.
8. Where can I exchange the banned 500 and 1000 rupee notes?
You can exchange the 500 and 1000 rupee notes at any authorized bank or at any Head Post Office or Sub-Post Office.
9. Will I have to go to my bank branch itself?
For exchange up to Rs 4,000 in cash you may go to any bank branch but do carry a valid identity proof.
For exchange over Rs 4,000, which will be accorded through credit to bank account only, you may go to the branch where you have an account or to any other branch of the same bank.
In case you want to go to a branch of any other bank where you are not maintaining an account, you will have to furnish valid identity proof and bank account details required for electronic fund transfer to your account.
10. Can I go to any branch of my bank?
Yes, you can go to any branch of your bank. Also, here’s what you can do with your useless Rs 500 and Rs 1000 notes
11. Can I go to any branch of any other bank?
Yes, you can go to any branch of any other bank. But in this case, you have to furnish valid identity proof for exchange in cash; both valid identity proof and bank account details will be required for electronic fund transfer in case the amount to be exchanged exceeds Rs 4,000.
12. I have no bank account but my relative / friend has an account, can I get my notes exchanged into that account?
Yes, you can do that if the account holder, that is your relative / friend, gives you permission in writing. While exchanging, you need to show this proof and your valid identity card at the bank.
13. Should I go to bank personally or can I send the notes through my representative?
It is better if you can visit the branch. In case you are sending a representative, do give him an express mandate, that is, a written authorization. While tendering the notes, this representative will have to produce the authorization letter and a valid identity proof.
15. Can I withdraw from ATMs?
ATMs and banks will remain closed on November 9. It may take a while for the banks to recalibrate their ATMs, and once it’s done, you can withdraw up to a maximum of Rs 2,000 per card per day till November 18. The limit will be raised to Rs 4,000 per day per card from the November 19 onwards. This piece will clear more doubts about this question: Rs 500, Rs 1000 notes illegal from midnight, ATMs won’t work tomorrow: PM Modi
16. Can I withdraw cash against cheque?
Yes, you can withdraw cash against withdrawal slip or cheque subject to ceiling of Rs 10,000 in a day within an overall limit of Rs 20,000 in a week (including withdrawals from ATMs) for the first fortnight that is up to November 24, 2016.
17. Can I deposit withdrawn notes through ATMs, Cash Deposit Machine or cash Recycler?
Yes, notes can be deposited in Cash Deposits machines / Cash Recyclers but not on November
18. Can I use cheque/debit cards/ credit cards/ NEFT/ RTGS/Internet Banking/ Mobile banking to purchase any products?
Yes, you can very well use these modes of payment for doing any transaction. And only 500 and 1000 rupee notes are banned and others are still valid. Online mode of payments is not affected at all.
19. Within how much time I can exchange 500 and 1000 rupee?
Indian Government has declared the last date December 30, 2016. The banned 500 and 1000 rupee notes can deposited at any Indian Bank till this time. If you fail to do so, you will get an opportunity to deposit them at specified RBI offices but you need to carry you’re your Identity Proof.
20. Right now I not in India, how can I deposit the 500 and 1000 rupee notes in India?
Not very difficult, you just need to issue an authorization letter to your friends, relative or family member or any person who is in India. This person can go to bank on your behalf and deposit the notes but need to provide ID proof your permission letter.
21. I am an NRI and hold an NRO account, can the exchange value be deposited in my account?
Yes, you can deposit the scrapped banknotes to your NRO account.
22. I am a foreign tourist, I have these notes. What should I do?
You can purchase foreign exchange equivalent to Rs 5,000 using these notes at the airport exchange counters within 72 hours after the notification, but you will have to present proof of purchasing these notes.
23. What to do if anybody is in emergency situation (hospitalization, travel, life saving medicines) but doesn’t have currency other than 500 and 1000 rupee notes?
No need to worry, Indian Government is not a fool and also plans for emergency situation. So at hospital, railway ticket counter, to purchase government bus ticket and air tickets you can use the Rs 500, 1000 notes till 11 Nov 2016.
24. Which Identify Proof we can use?
You can any of the following documents as a proof of Identity.
- Aadhaar Card
- Driving License
- Voter ID Card
- Pass Port
- NREGA Card
- PAN Card
- Identity Card Issued by Government Department and Public Sector Unit to its Staff.
25. What to do if I want to read about this news?
For more information about ban of 500 and 1000 notes log on to official site of RBI www.rbi.org.in .
26. Is there any support team to help everyone out?
You can call 022 22602201 / 022 22602944 or drop an email at firstname.lastname@example.org