The Narendra Modi led government on Tuesday announced that the existing ₹500 and ₹1,000 currency notes will become invalid post-midnight (on November 8 2016).
The government has given citizens 50 days to exchange their notes with new ones, after which Modi said these notes would be worthless. The announcement caused chaos with people rushing to ATMs in a state of panic: to deposit big denomination notes and to withdraw smaller denomination ones.
But there is no need to panic, really; that is if you do not possess black money. Here’s a refresher for you on what your options are if you have ₹1,000 and ₹500 currency notes with you.
The what and the why
In a move to fight black money and to stop spread of counterfeit notes, the government decided to invalidate ₹500 and ₹1,000 notes, effective immediately. Additionally, the Reserve Bank of India introduced a proposal for new ₹500 and ₹2,000 notes which shall be available from November 10.
Should you be worried?
No, if you do not have any illegitimate money.
Yes, if you have tons of black money.
What should I do with the ₹500 and ₹1,000 notes that I have?
Prime Minister Narendra Modi has provided citizens with several options to exchange their notes. People can exchange their currency at banks or deposit the money in their accounts. They can also flush it down the toilet, if it is ill-gotten wealth.
Make sure you carry your Aadhaar and PAN card when you go to exchange/deposit notes.
And there’s definitely no need to panic and do the following:
Here’s the plan chalked out by the government:
Who is exempted?
The ban is on hold for some transactions till November 11. The following places will accept old ₹500 and ₹1,000 notes:
• Government hospitals and chemists
• Railway, airline, and bus ticket booking counters
• Petrol and diesel stations run by public sector oil companies
• Milk booths authorised by state governments
• Crematoria and burial grounds