A bold step Overnight: De-monetisation of Rs. 500 and Rs. 1000 notes

This Wednesday morning many were waiting in long queues, many were trying to withdraw cash from ATMs , many struck and clueless of what to do in these two days… The government’s decision came out as a bolt from the blue last night, but is this plight of the common man or a blessing in disguise for the common man’s nation.

Prime Minister Narendra Modi yesterday night took nation by surprise by announcing that denomination of Rs. 1000 and Rs. 500 notes will not be considered a legal tender with immediate effect from the midnight. But this was just the tip of the iceberg for the common man as along with came those aftereffects today. 

All Banks nationwide are closed for Today and no ATM withdrawn can be done for two days. The old currency notes of Rs.500 and Rs. 1000 are mere a piece of paper now but from tomorrow citizens can visit various bank and post office branches and exchange old currency notes for the new ones by giving a valid ID Proof of Adhaar Card and Pan Card or Voter ID ,Passport or Ration Card. As announced, it is expected that ATMs will resume functioning for the common man from 11th of November.

This huge step no doubt is in benefit of the nation in the bigger picture as FIU of India get info about transactions from banks. During this period, banks will take extra precaution and will share info with Income Tax dept. as deemed fit. But still the hassle between people’s everyday life cannot be ignored. Many woke up to find they are not able to withdraw any cash for two and are struck cashless.

Government hospitals, pharmacies at such hospitals will accept Rs. 500 and Rs. 1000 notes for 72 hours from November 8 midnight. The move is designed to lock out money that is unaccounted for – known as “black money ” – which may have been acquired corruptly, or be being withheld from the tax authorities.

The idea is to lock out money that is unaccounted for and make it visible for tax purposes – banks will be happy to exchange a few thousand rupees, but will be asking questions of those who turn up with hundreds of thousands or millions in currency. People will be able to exchange their money at banks between 10 November and 30 December.  The limit for exchanging old currency notes for new ones is Rs.4000 upto 24th November.  There will be a limit on withdrawal of Rs. 10,000 per day and Rs. 20,000 per week, as expected this limit will increase in the coming days. 

However, on brighter side for these two days for the common man, there is no change in online transaction, you can transact online or use various mobile wallets and apps, but then again are they really useful in “every situation”? Don’t worry, as tomorrow you’ll be able to exchange notes and ATMs will come into effect just after one another day, at last this decision is in the benefit of the nation, of the common man himself.