Prime Minister Narendra Modi has literally taken the nation by storm by declaring that from midnight of today (November 8, 2016), Rs. 500 and Rs.1000 will cease to be legal tender. "These notes are just papers from tomorrow," said the prime minister as the news started to create ripples across the market like some tsunami wave!
Prime Minister was addressing the nation from New Delhi but nobody could see it coming. During his speech when he said that the ATMs will not function till November 9, and in some places till November 10, it took people by surprize. But when he elaborated further, the big picture started to fall in the place. Though the complete impact of this decision is yet to be evaluated.
Modi said, people who possess Rs. 500 or Rs. 1000 currency notes after December 30 can exchange it at Reserve Bank of India by providing a declaration. This is till March 31, 2017. These notes should be exchanged in banks and head post offices and sub post office within December 30, 2016, by providing a valid identity proof such as Aadhaar, PAN card or voter ID card. But from midnight of November 8, 2016, Rs. 500 and Rs.1000 will cease to be legal tender. "These notes are just papers from tomorrow," said he in a dramatic manner!
Prime Minister further explained that Rs. 500 and Rs.1000 notes are mostly used in black money. Corruption, black money and terrorism can come in the way of a country's robust economic growth. He also said that "terrorsists from across the border" are spreading counterfeit currency notes.
Prime Minister's masterstroke of banning big money is going to ruffle a lot of financial feathers for sure!
