Use of ₹ 500 and ₹ 1,000 Notes Banned by Indian Government- Important

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Old 500, ₹ 1,000 notes must be deposited in bank or post office accounts from 10th November till 30th December 2016. Those unable to make a deposit by 30th December 2016 can go to the specified offices of RBI till 31st March 2017 to deposit notes after submitting a declaration form.

Shadow Economy, this Ghost Economy Has to Stop

What is this Scheme?

  • The legal tender of the notes in denominations of ₹ 500 and ₹ 1000 was withdrawn.
  • With this old high denomination (OHD) notes (₹ 1000 and ₹ 500) cannot be used for future business or store of value for future usage.
  • The OHD notes can exchanged for value at
    • Offices of the Reserve Bank of India.
    • Any of the bank branches.
    • Any Head Post Office or Sub-Post Office.

Necessity of the Scheme

  • The high incidence of fake Indian currency notes- fake notes look like genuine, even without copying security features.
  • Fake currency used for anti-national and illegal activities- misused by terrorists or for hoarding black money.
  • India unfortunately remains a cash based economy - still dealing with menace of circulation of fake Indian Currency Notes.
  • For economic integrity- for growth of real economy, this shadow black ghost economy had to be stopped.

Key Facts

  • For immediate needs, old 500, ₹ 1,000 notes can be exchanged in any bank, head post office, or sub post office by showing identity proof like Aadhaar card, voter card, ration card, passport, PAN card or other approved proofs (limit of 4000 ₹) .
  • The limit for exchange will be four thousand rupees until 24th November, and will be increase from 25th November till 30th December 2016.
  • The Reserve Bank of India (RBI) is issuing new 500 and ₹ 2,000 notes from 10 November 2016.
  • There will no restrictions of any kind on non-cash payments by cheques, demand drafts, debit or credit cards and electronic fund transfer.
  • The currency notes of 100, 50, 20,10, 5,2 and 1 rupee will remain unaffected by this decision and remain legal tender.
RBI Revealed the New ₹ 500 and 2000 Notes

Facts About 500 and 2,000 Rupees Note

  • Friendly design of with features for visually impaired.
  • 2,000-rupee denomination issued for first time:
    • Called as the ‘Mahatma Gandhi (New) Series’ .
    • Magenta color 66mm by 166mm.
    • Motif of the Mangalayan, the low-cost mission of ISRO to Mars on the reverse side and Mahatma Gandhi on front side.
  • 500-rupee note has different colour, size, theme, design, and location of security features compared to the old notes.
    • Stone grey in colour.
    • Motif Delhi՚s Red Fort on reverse side and Mahatma Gandhi on front side.
    • Size of 63mm by 150mm.

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