Old Rs 500 and Rs 1000 notes no more legal tender

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#1 Nov 8th, 2016, 21:33
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Big announcement being made by PM Modi, Rs 500 and Rs 1000 notes will not be legal from midnight today. Although sudden, but a much required and appreciable move. The present notes can be exchanged at banks by December 30th. Will post the details as they come.

1. Deposit old notes of Rs. 500 or Rs. 1000 in banks or post office accounts from November 10 till December 30, 2016 without any limit. There will be a limit on withdrawal of Rs. 10,000 per day and Rs. 20,000 per week. This limit will be increased in the coming days. You must carry your Aadhaar card and PAN Card when you go to exchange notes. The limit you can exchange is Rs. 4000 upto November 24.
2. After December 30, these can be changed at the Reserve Bank of India.
3. Tourists can change notes at airports.
4. For 72 hours or till November 11, government hospitals will accept Rs. 500, 1000 notes. A doctors prescription must be carried with such notes.
5. Counters for railway, bus and air tickets too will accept these notes for 72 hours for purchase of tickets.
6. This will also be allowed till Nov 11 at petrol stations authorised by public sector oil companies, milk booths and crematoria and burial grounds.
7. Notes of Rs. 100 and lower denominations will all continue to be legal tender.
8. Coins too will continue to be legal tender. Online transactions and card payments will not be affected.
9. The RBI has accepted a proposal for new 500 and 2000 rupee notes, the Prime Minister said

Source NDTV
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Last edited by jituyadav; Nov 8th, 2016 at 23:21..
#2 Nov 8th, 2016, 21:56
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Yes, notes of other denominations will remain in circulation...

And new notes of Rs 2,000 and Rs 500 will be circulated soon, once old ones are flushed out...

Banks will remain closed tomorrow.

From November 10 to November 24, you can change old notes of amount Rs 4000.

There will be withdrawal limit initially; Rs 10,000 per day (to avoid shortage of money).

Transaction through cards will remain continued...
#3 Nov 8th, 2016, 22:09
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Apparently the new Rs2000 will have a NGC nano gps chip embedded.

So much speculation at the moment. Not sure what is true and what is not. The only thing for sure is the end of the present 500 and 1000 note.
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#4 Nov 8th, 2016, 22:20
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Some info
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#5 Nov 8th, 2016, 22:21
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PM's speach this evening. Coverage (The Hindu).

Acha Dhin, with added inconvenience.
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#6 Nov 8th, 2016, 22:24
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I would keenly watch the judicial battle that would be spawned after the surprise scrapping of certain currencies. Don't forget currencies are contract. One more thing, a bit of discount, fair share of sell of precious metals and stones, millions of people to laundry the old notes. Well , human mind is devious and ingenious. More ahead
#7 Nov 8th, 2016, 22:26
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The Rs2000 note is a mistake, I think it will make hoarding black money easier, unless the government plan to change the note every year.
#8 Nov 8th, 2016, 22:42
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I am hearing comments that there will be some inconvenience in short term, but I wonder if this is really such a 'some inconvenience' thing, it may be a big mess before things settle down.

Also, will it have impacts on wages, that has to be seen. In most of India, wages were paid in cash, much of it through unaccounted money. So will it be poor people who will face the most difficult times and may see cut in their wages, I hope not.

And what about money stashed in form of Gold and other stuff, just exchange it for 2000 Rs note after some time and enjoy. How will it reduce black economy that may again start after some lull.

Too much too fathom, I only hope the government has done its homework well, I do trust Modi for that as of now, hope he delivers the objective for which this big step is taken.
#9 Nov 8th, 2016, 22:43
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Quote:
I am hearing comments that there will be some inconvenience in short term, but I wonder if this is really such a 'some inconvenience' thing, it may be a big mess before things settle down.
So far, I think only Indian/residents have reacted here.
My wife panicked at first: I said, never mind, there will be a mess for a few days, we just live through that.

What about our Indiamike tourist/traveller membership? Some of them will have tens of thousands of Rs in their purses. Some will expect to pay hotel bills, maybe checking out in the middle of the night.

What are they supposed to do?

Quote:
Originally Posted by iamsomnath View Post Don't forget currencies are contract.
The notes are promissory notes (I promise to pay the bearer...)

Going back to economics class, c.1970, when I asked the lecturer if that meant I could get a gold coin for my pound note, he said, "No: they will just give you another pound note for it."

So, you take two old Rs.500 to a bank, and they give you one new Rs.1000 for it. No legal implications apart from the inconvenience.
#10 Nov 8th, 2016, 22:44
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I don't know about judicial battles or inconvenience, demonitisation has happened earlier a few times, usually wrt notes printed before a certain date but not always; I remember in 1978, all higher value notes (1000, 5000, 10000, I think) were demonitised overnight. Wasn't big inconvenience for honest taxpayers- a trip to the bank was enough.

A good step to tackle black money (jituyadav, at least a significant part of it), fake notes, hawala and terrorism funding (which uses fake currency and hawala both).

Other info- ATMs closed for 2 days, until 11th November

Edit: BB< what is the source of your graphic?
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#11 Nov 8th, 2016, 22:49
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Rs 500 and Rs 1000 notes no more legal tender

Quote:
Originally Posted by Nick-H View Post The notes are promissory notes (I promise to pay the bearer...)

Going back to economics class, c.1970, when I asked the lecturer if that meant I could get a gold coin for my pound note, he said, "No: they will just give you another pound note for it."

So, you take two old Rs.500 to a bank, and they give you one new Rs.1000 for it. No legal implications apart from the inconvenience.
Promissory note is a legally binding contract. Just downed the 4th , so more tomorrow
#12 Nov 8th, 2016, 22:52
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Capt, it's a whatsapp forward.
#13 Nov 8th, 2016, 22:57
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Quote:
Originally Posted by Nick-H View Post What about our Indiamike tourist/traveller membership? Some of them will have tens of thousands of Rs in their purses. Some will expect to pay hotel bills, maybe checking out in the middle of the night.

What are they supposed to do?
Get it changed from banks, Airports are allowed to accept these notes, that would include all facilities I suppose. Moreover, I don't think tourists carry so much cash anyway.

Quote:
Originally Posted by capt_mahajan View Post A good step to tackle black money (jituyadav, at least a significant part of it), fake notes, hawala and terrorism funding (which uses fake currency and hawala both).
Absolutely, a very good step, those who missed the income disclosure scheme must be cursing themselves now.
#14 Nov 8th, 2016, 23:01
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Thanks, BB. Asking because sent it to the kids, who were panicking because of inexperience.

Nick, even foreigners/others without bank accounts can go to a bank and exchange notes from day after tomorrow. Indians will need PAN or aadhaar card (unsure which, probably PAN), foreigners- passport, I guess.
#15 Nov 8th, 2016, 23:20
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Brilliant, 11 visits to bank/post office coming up for me, no time to do anything in UK, stuck with Rs42,000, all in Rs500/1000 notes.

Even better, Rs90 is all I have in other notes, and I'll have 4 hours at Mumbai airport, then to get from Chennai airport to central Chennai, then try to find a bank/post office.
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