500,1000 Notes Banned| Sensational statement by Modi
500rs,1000rs notes banned in India effects from mid night of nov 8,Now World bank states India is Economic star*
Live update of PM Narendra Modi’s address to the Nation. Corruption, terrorism, black money weakening the nation. Stay with us for the latest news and live updates from PM Modi’s speech.
The decision to ban existing 500- and 1000-rupee notes has a certain economic logic to it. Certainly, the absence of large-denomination notes will make it harder for people to keep black money in hand. That said, there are no clear estimates as to how much black money is in actual currency notes, and how much in land or gold or other forms of wealth.
But the point behind Modi’s announcement wasn’t to actually change the way that the black money economy works. It was to show that he is capable of doing something – of strong leadership. And, from that point of view, it was a sign both of desperation and brilliance. By making the present Rs500 and Rs1,000 currency notes illegal from Nov. 09 onwards, the government has effectively forced the entire country to go to the banks (or post offices) and have their cash (in those denominations) added to their accounts.
It’s still too early to gauge how well the entire replacement mechanism will work, despite the 50-day window the government has announced. But this much is clear: The move will have a massive impact on the black money and counterfeiting ecosystem.
That’s simply because the monetary value of Rs500 and Rs1,000 notes in circulation far outstrips any other denomination,In other words, the black money issue was one of the most vulnerable for Modi. And that’s what underlies the sudden and swift decision to outlaw Rs. 500 and Rs. 1000 notes. It’s something that every single voter will get to know about – no exceptions. And it’s something that each and every one of them will be told is meant to cut down on black money. They may not be getting any money in their accounts,
as they expected, but they will go away with the solid impression that their Prime Minister is certainly doing something about it. There are enough voters in the world who don’t much care what sort of decision you take and whether it works – if it’s big and courageous enough, they will just admire you for having taken it at all. That’s the angle that Modi’s going for the biggest move made by the Modi government to stop the circulation of illegal currency in the country, which was part of the Bharatiya Janata Party’s poll manifesto in 2014. Earlier in his term, Modi had opened up an amnesty scheme, allowing people to declare their illegal wealth by Sept. 30 2016, in order to avoid legal action. By Oct. 01, only some Rs65,250 crore worth of black money was declared under this scheme.
The prime minister also emphasised on Nov. 08 that the sudden move will impact the financing of terrorist activities in India, which often uses counterfeit notes and black money channels.
Modi words in Maanki baath and BANKS CLOSED on 9Nov, ATM’S CLOSED on 09,10 nov 2016
“Banks will be closed tomorrow. It will cause some hardship to you….Let us ignore these hardships… In country’s history, there comes a moment when people will want to participate in the nation building and reconstruction. Very few such moments come in life,” Modi said.
The prime minister said the measures were aimed at curbing the “disease” of corruption and black money which have taken deep root. “There is a need for a decisive war against the menace of corruption, black money and terrorism… Corruption, black money and terrorism are festering wounds which make the country hollow from within,” he said.
why modi took the sensational decession..?
The answer to that question depends on how well the opposition mobilizes its counter-narrative. And the answer to that question will determine whether Modi’s big gamble pays off politically or not. But make no mistake – this is the first of many such gambles. Modi is India’s first modern politician. He knows better than anyone else in this country – except perhaps Arvind Kejriwal – how to seize a narrative. He certainly knows exactly how to turn it around, and to his advantage. Let’s see if this one works, and what gambles will follow in the months leading up to the Uttar Pradesh election – and beyond.
To choke black money, Modi withdraws old notes, to introduce new Rs 500, Rs 2k notes
500 notes and 1000 notes can be used with in 72 hrs( Govt Hospitals,Railwaystaions,Medical shops)
He assured the nation that the notes of Rs 100, 50, 10 and coins of all denominations will remain legal tender and will not be affected and that “this step will strengthen the hands of the common man in the fight against black money.”
The government also listed some exceptions to help minimise inconvenience to the common man, like hospitals will continue to accept the big currencies for the next 72 hours. Rs 500 and Rs 1000 notes will also be valid for transactions related to booking of air tickets, railway bookings, government bus ticket counters till the midnight of November 11 and 12.
ATM withdrawals will be restricted to Rs 2000 per day and withdrawals from bank accounts will be limited to Rs 10,000 a day and Rs 20,000 a week.He expressed confidence that the staff of banks and post offices will rise to the occasion to introduce the new order within the available time.
He also expressed confidence that political parties, workers, social organisations and the media will go further than the government in making it a success.
How can we exchange the 500note and 1000 note, what is the Money Transaction Limit in Bank ?
Besides depositing money in bank accounts, the Rs 500 and Rs 1000 notes can also be exchanged with lower denomination currency notes at designated banks and post offices on production of valid government identity cards like PAN, Aadhaar and Election Card from November 10 to November 24 with a daily limit of Rs 4000.
Those unable to deposit Rs 1000 and Rs 500 notes till December 30 this year can do so in designated RBI offices till March 31 next year after filling a declaration form along with proof and reasons, the Prime Minister said.
Modi’s announcement comes just days after some leaders suggested that currency notes of Rs 1000 and Rs 500 denominations should be abolished to curb black money in the country.
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