When Mr. Narendra Modi was elected as the Prime Minister of India, many had expected him to fire, right up front. And that he did. At the stroke of dusk on 8th November, 2016, Mr. Modi took the country by surprise, by announcing that all the existent currency notes of INR 500 and 1000 will cease to be legal tender, as soon as the date changes to 9th November, 2016.To replace them, new notes of INR 500 and a brand new denomination note of INR 2000 will be introduced into the economy.
Quoting it as a part of the plan to curb the rampant corruption, the Prime Minister and his team has come up with a unique way of bringing unaccounted cash worth billions of rupees, to the mainstream economy. Here is a summary of the saga of the major “Modi” assault on fake currency, corruption and black money:
- Currency notes of INR 500 and 1000 will cease to be legal tender, with effect from 12 AM, 9th November, 2016.
- All the banks will remain closed on 9th November, 2016, to remove these notes from their counters and their ATMs.
- A person can deposit all the notes of INR 500 and 1000 denominations in his bank or post office account, from 10th November, 2016 to 30th December, 2016.
- Alternatively, the notes of these denominations can be exchanged at any bank, head post office or sub post office, with a limit of aggregate INR 4000.
- Government hospitals and pharmaciesat these hospitals will continue to accept these denominations for 72 hours, from 12 AM, 9th November, 2016.
- The daily cash withdrawal limit will be set at INR 10000 and the weekly limit at INR 20000.
- New notes of INR 500 and INR 2000 will be launched on 10th November, 2016, carrying the pictures of the Red Fort and the Mangalyan (India’s Mars mission), respectively.
A couple of hours after the announcement, the SBI Chairman, Ms. Arundhati Bhattacharya stated that the bank has been directed by the government to demonetise the current series of INR 500 and 1000 notes.
This is certainly an audacious and powerful step by the government of the country, which is keen to prove that it is leaving no stones unturned in its quest for a corruption-free nation.
Junior Associate Lawyer, SMA Legal