Government demonetised Rs 500, 1000 currency notes

India-Prime Minister Narendra Modi’s announcement on demonetisation of Rs 500 and Rs 1000 currency notes to curb black money and corruption took everyone by surprise. The entire operation was top secret and barring six persons – Prime Minister, Finance Minister, two officials each from the Finance Ministry and Reserve Bank of India – no one was aware of the big announcement of scrapping Rs 500, Rs 1000 currency notes. Prime Minister also disclosed this in his first nationwide address. 500, 1000 currency notes
Narendra Modi
The final decision on demonetisation was conveyed to the authorities concerned only last week when Finance Minister Arun Jaitley met RBI Directors from all the states. During the meeting, Jaitley asked RBI directors for their views on banning Rs 500 and Rs 1000 currency notes.
Some RBI representatives were against this move, as they thought that it would cause inconvenience to citizens, but they were asked to maintain silence regarding this matter. Last week (on Friday evening), Modi met Arun Jaitley to follow up the discussion on the government’s plan. Modi also met Finance Ministry officials and discussed the implications of the decision. Finance Ministry, then sent an email to the Reserve Bank of India (RBI) officials regarding this undaunted move.
“Rs 100 notes not to be sent to ATM machines. Only Rs 500 and Rs 1000 notes to be sent to ATM machines from next day,” the email stated. On Tuesday morning, RBI ‘s regional offices  received a fax, sent from the Finance Ministry addressing the banks to not accept Rs 500 and Rs 1,000 notes from the very next day.
Another fax was sent to the RBI offices in the evening. This fax mentioned PM Modi’s order stating that from midnight Rs 500 and Rs 1,000 notes will not be accepted as legal tender. The RBI governor, Urjit Patel, then forwarded the email to all the concerned banks and departments. (ALSO READ: Deposits of old notes in banks not to enjoy tax immunity: FM Arun Jaitley)
The third and last message from the government to the RBI office warned of the possibility of a 10 fold increase in the amount of deposits at bank branches. Also, the message asked the RBI head office to increase security at all its branches.
This move will push back terrorists and those having stored black money, which is a lot in circulation.
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.
A deadline is given to all to deposit Rs 1000 and 500 currency till December 30, and those unable to do so can deposit in designated RBI offices till March 31 next year, after filling a declaration form along with proof and reasons. (ALSO READ: Dharmendra Pradhan says petrol pumps will accept old high denomination notes for first 72 hours)
Current Scenario
This created a hue and cry across the nation. The only places allowed to accept the Rs 500 and Rs 1000 notes  until were: Fuel stations, Hospitals, Medical stores, Airport, Railway stations and Bus stops
Huge queues were witnessed at petrol pumps as people wanted to get rid of the Rs 500 & 1000 currency. But, some of the petrol pumps ran out of change and asked customers to not to fuel their vehicles with Rs 100 or 200.
This move created a storm in the nation and media, with many of them appreciating the move. While Congress, on the other hand said, that the move will cause inconvenience to citizens and the government should have allotted time before taking such a move.
Many petrol pumps  stopped taking Rs 500 and 1000 currency and in some time government rolled out a order -stating that action will be taken against those pumps refusing to accept these notes.
The Government rolled out the new Rs 500 and 2000 currency and will be out in the market on Friday.

The Author

Pramod Baviskar

Professional Market Trader And Owner Of Dalal Street Winners Advisory And Coaching Services. Working Since 2007 And Online Presence Since 2010. We Provide Highly Accurate And Professional 1 Entry And 1 Exit Future, Option, Commodity, Currency And Intraday Stock Tips On Whatsapp With Live Support And Follow Up.
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