Indian Government Rs. 500, Rs. 1,000 notes no longer legal tender

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Indian Government Rs. 500, Rs. 1,000 notes no longer legal tender

The Union Government has announced that Rs. 500, Rs. 1,000 notes will cease to be legal tender. It was announced by Prime Minister Narendra Modi in a surprise address to nation. The demonetisation drive was taken to root out the menace of black money, corruption and fake currency from the country. The currency notes of 100, 50, 20, 10, 5, 2 and 1 rupee will remain unaffected by this decision and remain legal tender.

Key Facts :

  • Persons holding old 500, Rs. 1,000 notes must deposit these notes in their bank or post office accounts from 10th November till 30th December 2016 with Rs. 10000 per day limit. 
  • Those who are not able to deposit 30th December 2016 can go to the specified offices of RBI up to 31st March 2017 and deposit the notes after submitting a declaration form. 
  • However, for immediate needs, old 500, Rs. 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. 
  • The limit for such exchange will be four thousand rupees till 24th November, and will increase from 25th November till 30th December 2016. 
  • The Reserve Bank of India (RBI) will issue new 500 and Rs. 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.

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