Wednesday, 9 November 2016


Narendra Modi, Prime Minister of India surprises everyone with one of his game changing move to fight against corruption. On Tuesday i.e. on 08th November 2016 announced that “Reserve Bank of India demonetise existing Rs 500 and Rs 1,000 currency notes and will not be expected universally from 12 AM, 9th November 2016 onwards”.

The unexpected move by the government is designed to fight back against black money, corruption, terrorism and money laundering. Modi in this speech said “Corruption is a disease to country’s economic success”.

This surprise bomb is to bring the unaccounted cash worth billions of dollars into the mainstream economy which can result in the economic growth of country. Also this move is aimed at breaking the shackles of fake Indian currency.

Many people have termed this move as #surgicalstrikesonblackmoney

Modi in his speech added “New Rs 500 and Rs 2,000 denomination notes will be issued at a later date”. People will have 50 days i.e. upto 30th December 2016 to exchange the old money for new at banks but will have to show valid identification.

What Impact it will create on common people or richie rich society?

You will get value for the entire amount that is tendered at the bank branches and you can avail cash upto Rs. 4,000 per person irrespective of the amount. The businesses who are already using electronic transaction such as NEFT/RTGS/IMPS/Internet Banking/Mobile Banking need not worry about it.

You can withdraw from ATMs upto a maximum of Rs 2000 per day till 18th November and after that Rs. 4000 onwards.

Common people i.e. poor people and lower middle class which has less amount of money i.e. savings may not be affected for showing the amount but when it comes to upper middle class or Richie rich society that would face some serious issues as the black money would be involved so depositing large amount of money in banks will be questionable. 

Source : TrakEconomics Times

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