Modi government has announced plans to eliminate five hundred and one thousand rupee currency notes starting today to tackle the problem of black money in India.
Prime Minister Narendra Modi declared this initiative on a Monday night.
Modi said that people who have five hundred and one thousand rupee notes can deposit their cash in bank accounts, no limit on the money deposit has been declared however.
Banks will accept Rs. 500 and Rs. 1,000 notes till December 30th, 2016.
However, in usual transactions, no one will be able to use these higher denomination currencies.
With this Rs. 100 bill will be highest currency note in India.
He said that there is no cause for concern but those who have black money, if they submit their sum of money then the banks are entitled to contact the Income Tax Department, which will further inquire where the money came from and calculate the taxes.
PM Modi also revealed that ATM machines will remain closed in some parts of the country so that people can prepare for the new system, which will revolutionize things.
Moreover, the government has also decided to introduce a two thousand rupee note. The announcement of it has been given no official date.
Lesson For Pakistan
Often times it is difficult for us to admit the good work our neighboring country is doing but irrespective of that, the amount of corruption Pakistan has seen in recent times, the need for an initiative such as this (maybe by banning Rs. 500, Rs. 1,000, Rs. 5,000 and similar denomination prize bonds) is becoming a necessity rather than a choice.
Pakistan ranks 117th least corrupt nation out of 175th countries, according to the 2015 Corruption Perceptions Index reported by Transparency International.
Promoting solutions such as this might help the country evolve and take notice rather than remain stubborn and continue to go downhill with problem as serious as corruption.
What about bonds which are available from s.100, Rs.200, Rs.750, Rs. 1,500, Rs.7,500, Rs.15,000, Rs.25,000 and Rs.40,000 .
India is launching new 500 and 2000 notes, the reason old notes are going away.
I think replacing old notes with new ones, is drastically different from appearing on TV at 8PM and announcing that more than half the currency you physically carry will have no value outside banks starting from 12AM.
30 Dec tak time hai un k pass apne currency notes change krwane ka..
You are right. i heared it on Zee News by the Mouth of Tarik Fateh. (An Ex Pakistani whose Now Part of Indian Media and speaks against Pakistan)
Pakistani politicians to 10000 bananay ka soch rahay hain taa ke corruption ka rasta nikal sakay.
Wow, that graph is so misleading, visually. You’d almost think it was created by the current government to show it’s “performance”.
The graphs is so misleading, when you look at it. It looks like that corruption in 2016 is 8-10% compared to 2006. Where as thats not the case, its just starting from 115 and not 0 :-)
This is the new graph trend to mislead people, I see these graphs in new processors and graphics speeed benchmarks and many new products benchmarks. It is misleading and one thinks almost 100% increase or decrease but actually it was only 1% to 2% which does not even matter.
true that!
Income tax department ko kiya haq paunchta hai k woh banks ko check kren? insaan ki marzi woh jitna marzi paisa rakhe.
What are you insane? Banning such currency notes will never fix the issue of corruption. Instead people will start giving smaller notes in bribe.