Narendra Modi announces withdrawal of Legal Tender Status for Rs. 500 and Rs. 1000 Notes

The Government of India vide notification dated November 8, 2016 have withdrawn the Legal Tender status of Rs. 500 and Rs. 1,000 denominations of banknotes of the Mahatma Gandhi Series issued by the Reserve Bank of India till 8th November 2016.

This is necessitated to tackle counterfeiting Indian banknotes, to effectively nullify black money hoarded in cash and curb funding of terrorism with fake notes.

Starting from 10th November 2016, members of public / corporates, business firms, societies, trusts etc holding these notes can tender them at any office of the Reserve Bank or any bank branch and obtain value thereof by credit into their respective bank accounts.

For their immediate cash needs, these notes of value upto Rs. 4,000 per person can be exchanged for cash over the counter of these bank branches.

Public are advised to present a valid proof of identity for availing this exchange facility.

Value credited to their bank accounts can be freely used by issue of cheques or by remitting through various electronic modes of transfer like NEFT, RTGS, IMPS, mobile banking, internet banking etc. Cash withdrawals from bank accounts, over the bank counters, will be restricted to a limited amount of Rs. 10,000 per week.

All ATMs and other cash machines will remain shut on 9th November 2016 to facilitate recalibration. When ready, they will be reactivated and cash drawals from ATM and other machines will be restricted to Rs. 2,000 per day.

Source : Equity Bulls

Keywords