Rs 500 & Rs 1000 notes scrapped: 8 things you need to know.

By DU News Editorial Board

Mr. Narendra Modi did something incredible, but shocking yesterday. In the highly televised address to the nation he announced the withdrawal of legal tender of Rs 500 & Rs 1000 notes. In simple terms, from midnight November 8, 2016 these currency notes will become “mere paper”, as the Prime Minister said.

The RBI also decided  to release new series of currency notes for the 500 denomination and completely new series of Rs 2000 notes.

So, for the next few days, here’s what you need to know and do-

1. All Banks will remain closed for all public work on November 9, 2016 (today).

2. The Public can deposit old currency notes of Rs 500 & Rs 1000 at post office accounts and banks till December 30, 2016. You would be required to show a valid ID proof (Aadhar, Voter ID, PAN).

3. There will be no limit on the deposit amount, as long as the money is legal.

4. You can also exchange old notes of Rs 500 & Rs 1000 at any bank from tomorrow (Nov 10), head post office or sub post office by showing valid ID proof (Aadhar, Voter ID, PAN). The limit for this is Rs 4,000 per day till November 24, 2016.

5. There is also a limit of withdrawal of money, Rs 10,000 per day and Rs 20,000 per week. This limit shall be increased in the coming days.

6. All kinds of non-cash transactions such as cheques, debit/credit cards, demand drafts and electronic funds transfers will face no restrictions.

7. All ATMs will be non-functional on November 9, 2016. In some places ATMs will be non-functional even on November 10, 2016.

8. For 72 hours from Midnight November 8, 2016, these places will continue to accept the now demonetised Rs 500 and Rs 1000 notes as payments: Government Hospitals Railway/Airline ticket booking counters Petrol, diesel & Gas stations authorised by Public Sector authorised oil companies Government authorised Consumer co-operative stores State Government authorised Milk Booths Crematoria & Burial Grounds.