Prime Minister Narendra Modi announces War on Black Money
- In Economics
- 12:22 AM, Nov 09, 2016
- Mayuresh Didolkar
In a move than can permanently and decisively change the rules of engagements in the war on black money and corruption, PM Narendra Modi announced that as of midnight of 8/11/2016, 500 and 1000 rupee notes will cease to exist as legal tenders.
In a televised address to the nation, PM made this announcement at 8 pm IST. PM reiterated the steps his government took in the last two and half years to fight the menace of corruption and black money. He stressed the need to take decisive steps to fight the evil of black money.
Existing 500 and 1000 rupee bills can be deposited in bank and post office savings account. This window will be available till 30th Dec 2016 for all citizens across all banks and post offices. Past that date, citizens will have another option of exchanging these bills through RBI offices.
Some commercial establishments such as petrol and CNG gas stations will have permission to accept these tenders until 11th Nov midnight after maintain records of all such transactions.
As absolute secrecy had to be maintained around this, all the banks and government offices were informed only after the televised address. PM announced that banks will remain closed on 9th Nov across India. ATM centers may also not function during that time.
PM Modi appealed to common citizens to co-operate with government and expressed full faith in the common citizen's commitment to fight corruption. He described this war on black money as "Maha Yagnya". He implored all Indians to celebrate a Diwali of "shuddhikaran".
All electronic money transfer operations such as neft/rtgs transfers, debit and credit card operations as well as cheque payments will continue without any change. Here is PIB's press release on this announcement: http://pib.nic.in/newsite/mbErel.aspx?relid=153403
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