In
a historical move that will add record strength in the fight against
corruption, black money, money laundering, terrorism and financing of
terrorists as well as counterfeit notes, the Government of India has decided
that the five hundred and one thousand rupee notes will no longer be legal
tender from midnight, 8th November 2016.
The
Government has accepted the recommendations of the RBI to issue Two thousand
rupee notes and new notes of Five hundred rupees will also be placed in
circulation.
Notes
of one hundred, fifty, twenty, ten, five, two and one rupee will remain legal
tender and will remain unaffected by the decision today.
Prime
Minister Shri Narendra Modi made these important announcements during a televised
address to the nation on the evening of Tuesday 8th November 2016. He said that
these decisions will fully protect the interests of honest and hard-working
citizens of India and that those five hundred and one thousand rupee notes
hoarded by anti-national and anti-social elements will become worthless pieces
of paper.
The
Prime Minister said the steps taken by the Government would strengthen the
hands of the common citizens in the fight against corruption, black money and
counterfeit notes.
Fully
sensitive to some of the difficulties the common citizens may face in the
coming days, the Prime Minister has announced a series of steps that will help
overcome the potential problems.
Persons
holding old notes of five hundred or one thousand rupees can deposit these
notes in bank or post offices from 10th November onwards till 30th December,
the Prime Minister announced. There are also some limits placed on the
withdrawals from ATMs and bank for the very short run.
Shri
Modi stated that on humanitarian grounds notes of five hundred and one thousand
rupees will be accepted at government hospitals, pharmacies in government
hospitals (with prescription of a doctor), booking counters for railway
tickets, government buses, airline ticket counters, petrol, diesel and gas
stations of PSU oil companies, consumer cooperative stores authorized by the
state or central government, milk booths authorized by state government and
crematoria, burial grounds.
Shri
Modi emphasized that there is no restriction on any kind of non-cash payments
by cheques, demand drafts, debit or credit cards and electronic fund
transfer.
In
his address the Prime Minister shared the insight into how the magnitude of
cash in circulation is linked to inflation and how the inflation situation is
worsened due to the cash deployed through corrupt means. The Prime Minister
added that it adversely affects the poor and the neo-middle class people. He
cited the example of the problems being faced by the honest citizens while
buying houses.
A
time-tested commitment to eradicate black money
The
Prime Minister has time and again said that the Government is committed to
ensure that the menace of black money is overcome. Over the past two and a half
years of the NDA Government, he has walked the talk and led by example.
The
very first decision of the Prime Minister led NDA government was the formation
of a SIT on black money.
A
law was passed in 2015 on disclosure of foreign bank accounts. In August 2016
strict rules were put in place to curtail benami transactions. During the same
period a scheme to declare black money was introduced.
The
efforts have borne fruit. Over the past two and a half years, more than Rs.
1.25 lakh crore of black money has been brought into the open.
Raising
the issue of black money at the world stage
Prime
Minister Narendra Modi has time and again raised the issue of black money at
the global forum, including at important multilateral summits and in bilateral
meetings with leaders.
Record
growth in last two and a half years
The
Prime Minister said that the efforts of the Government have led to India
emerging as a bright spot in the global economy. India is a preferred
destination for investment and India is also an easier place to do business in.
Leading financial agencies have shared their optimism about India’s growth as
well.
Combined
with this, Indian enterprise and innovation has received a fillip due to the
‘Make in India’, ‘Start up India’ and ‘Stand up India’ initiatives that seek to
celebrate enterprise, innovation and research in India.
The
historic announcements made by the Prime Minister will add value to the already
thriving efforts of the Central Government.
Source : PIB, Release ID :153403
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