Government Ban Rs 500 and 1000 Notes why?

Prime Minister Narendra Modi has called an emergency address speech, where he revealed to the country that 500 and 1000 rupee notes are to be discontinued from midnight today. I know how defective decision it is but it is true and will be staunch decision of striking off usage of 1000 and 500 Rupee notes currency in India. This decision has been made by the present government under the PM who says, IMF and World Bank states India is an economic star now.
Every citizen will be allowed to withdraw 10,000 Rupees from Bank or ATM per day and 30,000 per week which seems to be less. This ban on notes can be major stroke on Indian economy but we will, have to wait and watch how it turns out to be.
Why India Banned 500 and 1000 Rupee Notes

India Banned 500rs & 1000rs Notes from Today

India has made a strict decision of banning regular 500 and 1000 rupee notes from circulation which is a result of finding 1.25 lakh crore black money. Indian government believes that by taking this decision we can hit black markets down and you would be least circulation of black money and fraud would not take place.

                          

Indian Announces 2000 Rupee Note Circulation

Instead of 500 and 1000 Rupee notes RBI will be issuing 2000 rupee notes which will be a regular currency circulation over India.

All those people who are worrying what to do with the stacks of 500 and 1000 notes, need not to glaze and run punching on the government. Because they have released a statement saying that all the remaining 500 and 1000 rupees notes are to be deposited at neat by Post Offices
Well Indian finance is sure going to face chaos by the demoing plans of our beloved Prime Minister Narendra Modi. So, most of you might be wondering what more topics have been discussed and stated during this speech. So I have posted all of them below.

• Sab ka sarkaar, sab ka vikas – governance and progress for all is our motto. We are focused on empowerment of the poor. A series of schemes we have introduced all aim at this. This is a government for our farmers.
• Corruption and black money are diseases rooted in this country, they are obstacles to our success.
• We are among fastest-growing economies, but we also rank so high in global corruption rankings.
• Terror strikes at the innocent. Who funds these terrorists? Across the border, our enemy uses fake currency and dodgy funds to sponsor terror – this has been proven repeatedly.
• Terror strikes at the innocent. Who funds these terrorists? Across the border, our enemy uses fake currency and dodgy funds to sponsor terror – this has been proven repeatedly.
• When you elected this government in 2014, world was talking about India being shaky economically. But India is now an economic star – this is what IMF and World Bank are saying.
Commoners over social media networks like Facebook and Twitter has started trolling the decision made by Indian government Prime Minister Narendra Modi. This issue might seem going easy but would turn into a chaos if government takes no necessary steps to circulate money correctly.

Withdrawal of Legal Tender Status for ₹ 500 and ₹ 1000 Notes: RBI Notice

Government of India vide their Notification no. 2652 dated November 8, 2016 have withdrawn the Legal Tender status of ₹ 500 and ₹ 1,000 denominations of banknotes of the Mahatma Gandhi Series issued by the Reserve Bank of India till November 8, 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 November 10, 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 up to ₹ 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 ₹ 10,000 per day subject to an overall limit of ₹ 20,000 a week from November 9, 2016 till end of business on November 24, 2016. The limits will be reviewed after this.

All ATMs and other cash machines will remain shut on November 9, 2016 to facilitate recalibration. When ready, they will be reactivated and cash drawals from ATMs will be restricted to ₹ 2,000 per day per card up to November 18, 2016 and the limits shall be raised to ₹ 4000 per day per card from November 19, 2016.

Any person who is unable to exchange or deposit the specified banknotes in their bank accounts on or before December 30, 2016 shall be given an opportunity to do so at specified offices of the Reserve Bank or such other facility until a later date as may be specified by the Reserve Bank.

For more details members of the public may visit RBI website www.rbi.org.in and Government web site www.finmin.nic.in for further information and details.

Here are the 10 latest developments in this story:

1. 1. Banks will reopen tomorrow and stay open this weekend to help people swap 500 and 1,000 rupee notes which are now banned, said the Reserve Bank of India.
2. 2. Banks and ATMs were closed today leaving lakhs of people scrambling to buy groceries and tickets for public transport. Many commuters were locked into long traffic jams as toll plazas refused to accept the notes that were abolished at midnight.
3. 3. National highways will charge no toll till midnight on Friday; toll booths on other major freeways have been asked to accept old notes till then.
4. 4. State-run petrol pumps and government hospitals have been warned that they must abide by an order to take the old currency notes till the same deadline.
5. 5. This one decision will change the course of how people spend and how they keep their money," said Finance Minister Arun Jaitley today, stressing the government's focus on moving India towards a cashless economy to combat money-laundering, corruption and black or untaxed money.
6. 6. The PM's initiative has been praised by banks, financial experts and entrepreneurs. Infosys founder NR Narayan Murthy declared it a "masterstroke."
7. 7. People can deposit the discontinued notes in banks and post office savings accounts before the end of the year. But the Finance Minister warned that if the money deposited in banks was illegal then the depositors would find themselves in "trouble."
8. 8. The new banknotes of 500 and 2,000 rupee denominations will be available in ATMs starting Friday, officials said.
9. 9. At ATMs, there will be an initial daily cap of 2,000 rupees on withdrawal per card, which will be increased to 4,000 rupees within a week.
10. 10. Opposition leaders say the move will hurt the poor, many of whom do not have bank accounts and keep their savings in cash.