The government of India on November 8, 2016, has taken a strong step to check fake currency and black money and has banned Rs 500 and Rs 1000 notes for all financial transactions with immediate effect.

The Indian Prime Minister Narendra Modi announced the same last night in his public address that was aired live on all news channels.

Latest Updates:

  • Cash above Rs. 2.5 lakh deposited in banks after the scrapping of these notes will attract 200% penalty if the income of the depositor does not match.
  • Jewellers to ask for PAN card details for cash transactions.
  • Sacks of burnt notes found in Uttar Pradesh.
  • Transition time to banks: no public dealing on Wednesday

The government has given time to banks to adjust to the new system and thus all the banks in India remain closed on Wednesday for public dealing and ATMs will also not function and in some places.

Your money stays safe

The public can deposit their old 500 and 1000 rupee currency in banks or post offices from Nov 10 to Dec 30, 2016, without any limits. Initially only Rs 10,000 daily and a maximum of Rs. 20,000 can be withdrawn from accounts in a week, but this limit will be increased in the coming days.

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The limit for withdrawal from ATMs will be Rs 2,000 per day till Nov 18. No date has been given for increasing the withdrawal limit till now as the limit shall be increased only after the currency demand smoothens.

For exchanging notes in cash at the counters in banks, the public has fifteen days but Aadhar card or Pan Card is mandatory, and the limit for cash exchange is Rs 4000 per day till Nov 24 from the same bank where you have an account.

The plastic money will remain working and all online debit and credit cards and transactions can be done as usual. Old currency notes and coins for value up to Rs 100 will remain operational.

Emergency cash payments

The old rupee notes can be used at hospitals, railway stations, government bus ticket counters, airports, petrol pumps for making cash transactions till Nov.

11. The same will be applicable at co-operative stores and government run milk booths.

The government has not stopped the large currency notes for the first time in the country as the former Prime Minister Morarji Desai had also scrapped rupee 1000 notes in the year 1978.

That time people had thrown their notes in the trash and even burnt them as cigarettes, but this time your money remains safe as the government has taken the step with full preparations and you can convert your old notes till Dec.

30 without limits.

No need to fear if you fail to do so by December last date as few approved offices of RBI will accept the old notes but you will need to give a reason for not depositing the money till the last date along with Pan Card and Aadhar card details.

Here is a complete guide and details to know what to do if you have the old notes: