Rs.500 and Rs.1000 Notes currency banned in India- The Effects and Consequences

Prime Minister, Narendra Modi on November 8th Tuesday 2016 night took an astonishing decision for the country. Though this decision will help a lot to get rid of corruption and black money from India but this sudden decision on 500 and 1000 rs note banned would be a great problem for most of the people. As India is just done with Diwali and the marriage season has commenced. This decision can lead to a lot of problems for some people.

Most of the people who have withdrawn huge amount of money for the marriages of their daughters or sons would have to again deposit it in bank but the biggest problem is that Prime minister, Narendra Modi has set certain rules and regulations for this deposition which are-

Do you have 500 and 1000 rps Note ? Get down to make a change to new note…:

 Rules and regulations to deposit money

• Money can be deposited in banks from November 10th to December 30th .So you will have 50 days time with you to deposit all your money in banks.
• Your 500 and 1000 rupee note will be accepted until 11th November by hospitals, petrol pumps, Railways, airlines, bus ticket e-counters, co-operative stores run by central government, authorised milk booths, and from crematoriums and burials.
• You can deposit money only once with a limit of 4000 rupees in one day.
• Money can be deposited to the banks where you have a bank account.
• You have to carry your Aadhar card and Pan card to deposit money.
• After 30th December people can exchange their money from the allowed banks by Reserve bank of India till 30th march.
• Tourist or other foreign country people who may be travelling in India can exchange their money from airports.
• People can also deposit their money in other people’s bank account with their consent. They have to take a written approval from them for such thing.
• After 11th November people can withdraw a maximum of 2000 rupees from ATM’s

Due to this decision there would be a lot of effects on people who have loaded a huge amount of black money in the form of stacks of 500 and 1000 rupees notes in their trunk boxes since years such kind of people may be politicians and also that businessman who don’t have bank accounts and totally rely upon their daily wages for living. Not only businessmen, the poor who don’t have bank accounts will also have to face such problems. Housewives who have been saving their private money since years will also have to take out all of the money for exchange.

The consequences will be that people can only deposit white money in bank accounts because they will be asked for Pan card while depositing the money. In such case, if money appears to be black immediate actions can be taken for such person. Prime Minister Modi has taken such steps to get out all the crores of black money that have been circulating in India since years. This  step will also help prevent the black money that is coming out of India  as the sources said that terrorist has also been involved in sending money to India for terrorist activities.

Another aspect is that 2000 rs note has been started which can be a question because by banning  500 and 1000 rupees. Prime minister Modi is inviting to carry businessman and middle-class people to carry the bigger amount of notes in their wallets.

The question is that once all the money gets filtered and people will start using new 500 and 2000 rupee note. Will People  not keep black money in their home again? Because during Indira Gandhi’s time also such kind of activities was done when on the same day all the banned notes were burnt as they were no longer in use. And again the black money started revolving around the country..!!