Tuesday, November 8, 2016

Rs.500 and Rs.1000 currency notes withdrawn

Prime Minister Sri Narendra Modi announced in an address to the nation that Rs. 500 and Rs. 1,000 denomination notes are being withdrawn from today midnight. He said that such notes will become "mere paper" within a few days. PM Modi said this is being done to tackle the menace of black money in the country, which has sapped the economy. As this announcement came just after PM's meeting with Army officials, it is believed that reliable information may have received that, to destabilise Indian economy, high denomination Indian currencies are being printed extensively in Pakistan and distributed through terrorist outfits. Banks, ATMs have been ordered to remain shut on Wednesday to facilitate the introduction of new 500 and 2000 rupee notes in ATMs and banks. Senior government officials and Reserve Bank of India chief Urijit Patel today revealed what the new Rs. 500 and 2000 notes will look like(shown above), announcing that these will be launched on Thursday, November 10.

In 1978 when Shri Morarjee Desai was PM, Rs.1000, Rs.5000 and Rs.10000 banknotes were demonetised to curb unaccounted money. To avoid hardships to common man, arrangements were also made to exchange such notes in banks by giving full address of the tenderer and serial number of the notes. This time it is possible that it may also be linked to Adhar in addition to address proof and mobile phone number of the customer. Though the general public may face some minor difficulties for a day or two it is to be welcomed by all common people as it is beneficial for Indian economy.


Nandi said...

14 days over, yet common man is standing que in front of ATMs to withdrwa his "white money" for his day to day expenses. ATMs allow Rs.2000 only per day and it comes out as Rs.2000 note, further hardship to change it to Rs.100 notes. Government has implemented the scheme without proper preparations and middle class and poor are suffering instead of "black money hoarders". Verily, sorry state of affairs, which was not expected of.

Sujatha said...


I can't believe that gov. has implemented the scheme without proper preparations, modi'ji's action plan. He is doing wantedly i believe..he will reveal step by step, some steps he is announcing in advance before the stipulated time.things will cool down. 14 lac crore of money it's not easy job to erase. both are worth to watch. time permits listen to this youtube once. For country's sake public has to bear the pain. maintaining financial hurdles at "home" is difficult, not able to imagine "how he is boldly taking this step" even he has rebels inside the party. FM also dont like his steps somehow..hence most of the times kanthidass is giving interview to the media. anyway he is trying his level best..pain is for him and common man too



Nandi said...

Dear Sujatha,
Pray to the god to come true your beliefs. Any one can agrue for and against a decision (and make videos, apps, and other digital presentaions to convince others even though he himself is not convinced), only time can tell whether that was good or not. Balanandan was involved in consumer movement in Kerala and at that time he understood what is "scarcity syndrome". If news spreads that sugar is in short supply each consumer who usually bought one KG sugar will buy 2 to 10 KGs fearing non availability and increase in prices. That action will multiply scarcity and make the problem more acute. In the present case that is the situation. Non availability of required cash in banks has created fear in the minds of people(required cash ie. 500 & 2000 rupee notes should have been printed and stored at Regional offices of RBI (without declaring the contents in the container boxes as was done in the case of 2000 rupee notes) before anouncing the demonitisation. In addition to sugar case mentioned above one more problem is in this note issue, remittance to banks will be delayed and more cash in 100 rupee notes stored in the houses which no body can prevent. So, no need to the remarks made by our world renound economist and former RBI governor Dr. Manmohan Singh.

One more thing, if this was announced after "Kalasarpa Yoga" period this much problem might not have arisen.

Nandi said...

Relieved to see that the problems and hardships faced by common man is reduced to a great extent and normalcy coming back. Introduction of many digital apps including "BHIM" and "My BSNL" along with earlier existed Credit/Debit card payment systems helped a lot to improved the situation. Now the RBI/IT department is to start checking for forged notes and unaccounted money came in to the banks from November 8th to December 31st. After the above excercise we will know the extent of black money unearthed on "demonitisation" drive.