Rs 500 and 1000 Notes Banned

Rs 500 and Rs 1000 Currency notes are banned in India today (09.11.2016). Its a historic decision taken by government yesterday which will tackle the terror funding, militancy, corruption and black money in one go. However some people will face problems but government has taken that decision with some precautionary measures to make it less problematic. New currency notes of Rs 500 and Rs 1000 will be launched again in few months.

Here are a few major points about this ban.

  • Rs 1000 and 500 currency notes are discontinued only for general public transactions.
  • These notes can be used till 11.11.2016 at petrol pumps, hospitals, bus ticket counter, railway ticket counter and airports.
  • These notes can be deposited in your bank account from 10.11.2016 to 31.12.2016.
  • You can withdraw Rs 100 notes from your nearest ATM from 11.11.2016. In the beginning you can't withdraw more than Rs 2000. After few days this limit will be extended to Rs 4000.

Problems faced by general public and retailers during this ban.

  • Most of the people are in panic as if there Rs 500 and Rs 1000 notes are of no use any more. But its not true. Still some good retailers are accepting these notes as they know that they can deposit these notes in bank after few days. But real problem arises when customers only present Rs 500 notes for buying very little things. How can a retailer provide change of Rs 500 to every customer. So its a time of cooperation between customers and retailers. After 2 days they can change their currency notes in Bank.
  • Those who have organized some gathering and functions (like marriage or parties) in their homes and have withdrawn large sum of money from bank are feeling cheated by government. There 1000 and 500 currency notes are worthless and they feel that no businessman will accept it. But its a time for good businessman to make there goodwill value in the market. If they keep accepting these notes for 1 or 2 days then they can deposit that money in bank after few days. But if they don't accept these notes then they will not only loose there goodwill value but also block their payment as Rs 100 notes are already in shortage. Nobody will be able to withdraw more than Rs 2000 daily from one ATM card. So if a businessman will not accept Rs 100000 payment from a customer as its in Rs 500 denomination, then he will need to wait for 50 days to to get it in form of Rs 100 denomination.
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