The Prime Minister of India, Narendra Modi, announced just a few hours ago that Indias fight against the stocks of black money had finally taken a counter-form in Demonetization. The old currency of 500 and 1000 would be no longer considered as valid mode of payment. The old notes, however, can be exchanged the freshly minted ones, at the banks. Some of the key points:
– All banks will remain closed on 9th of November
– All ATMs, too, will not be functioning on 9thNovember
– The old cash of 500 and 1000 are no longer legal; fresh 500 and 2000 will be introduced
– The withdrawal limit is set at 4000, for the next few days
– The daily limit for exchange is 10,000; the weekly exchange limit is 20,000
Essentially, demonetization entails the demonetizing of the former currency, meaning, the government has withdrawn the legality and validity of these notes. 10th November onwards, banks will be opened for the citizens to deposit the cash in their possession. Any deposits above the set-limit of 2.5 lakh is taxable according to the rules under the Income Tax Act. Old currency, too, can be exchanged at the banks, in accordance with the restricted limit. New currency can be withdrawn from banks as well as ATMs.
The team of Jan Ki Baat is in complete support this historic, powerful initiative undertaken on behalf of honest citizenry. We stand together in this fight against corruption.
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