{"id":7362,"date":"2016-11-09T01:22:02","date_gmt":"2016-11-08T19:52:02","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=7362"},"modified":"2016-11-09T12:37:23","modified_gmt":"2016-11-09T07:07:23","slug":"rs500-banned","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/rs500-banned\/","title":{"rendered":"Rs 500\/1000 Banned \u2013 What happened and Next Steps?"},"content":{"rendered":"
\"Rs
Rs 500 and 1000 banned – What next?<\/strong><\/figcaption><\/figure>\n

Prime Minister Modi made a major announcement tonight. From midnight of November 8, 2016 the Rs 500 and Rs 1,000 denominated notes would cease to be legal tender. In simple terms no one will accept Rs 500 and 1000 notes.<\/strong> This is really a BIG step and would have far reaching impact.<\/p>\n

Why was it done?<\/h2>\n

India is grappling with two problems:<\/p>\n

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  1. Fake currency especially on higher denominations which are used in terrorism\/drug rackets etc and<\/li>\n
  2. Black money held in cash which are usually held in high denomination currencies<\/li>\n<\/ol>\n

    This move would completely get rid of present fake currencies. For the black money there would be some<\/strong> impact as not all money is stored in cash. Many black money holders would have already invested in gold, real estate and other avenues and so would not be impacted.<\/p>\n

    \n

    Save Tax Honestly:<\/strong>\u00a0Download the Free Tax Planning guide for FY 2016-17<\/a><\/p>\n<\/blockquote>\n

    The Details:<\/h2>\n

    1.<\/strong><\/span> Rs 500 and Rs 1000 currency notes are no more legal tenders<\/strong> from November 9, 2016<\/p>\n

    2.<\/strong><\/span> These notes can be deposited in personal\/business bank accounts and post office accounts.<\/strong> There is no limit on the amount of money you can deposit for KYC compliant accounts. In case the KYC is not complete the amount would be limited to Rs 50,000.<\/p>\n

    3.<\/strong><\/span> The notes can be deposited by third party only after specific authorization from the account holder<\/strong>. Also the depositor would need to give their proof of identity.<\/p>\n

    4.<\/strong><\/span> Bank notes up to Rs 4,000 can be exchanged across the counter from banks, post offices and Issue office of RBI<\/strong>. You would need to fill up requisition slip and give proof of identity.<\/p>\n

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    Also Read:<\/strong>\u00a0All about Bank Deposit Insurance and How to increase it legally?<\/a><\/p>\n<\/blockquote>\n

    5.<\/strong><\/span> This limit of Rs 4,000 would be reviewed and revised every 15 days.<\/p>\n

    6.<\/strong><\/span> The notes\u00a0can be deposited or exchanged on or before December 30, 2016<\/strong>.\u00a0In case you are not able to deposit your money till December 30, you would be given time after that with necessary documents as specified by RBI.<\/p>\n

    7.<\/strong><\/span> You can withdraw maximum of Rs 10,000 from your bank account over the counter and Rs 20,000 in a week till November 24<\/strong>. This limit would be revised after that.<\/p>\n

    8.<\/span><\/strong> You can withdraw up to Rs 2,000 daily from ATM per card till November 18.<\/strong> This limit would be raised to Rs 4,000 daily per card from November 19.<\/p>\n

    9.<\/strong> <\/span>All ATMs, Cash Deposit Machines, Cash Recyclers or any cash dispensing machines would be closed on November 9 and 10<\/strong> to adapt to the new regulations.<\/p>\n

    10.<\/strong><\/span> The banks would be closed for public dealing on November 9.<\/strong><\/p>\n

    11.<\/strong><\/span> There is no restriction for use of non-cash payment like cheque, demand drafts, electronic fund transfers like NEFT\/IMPS\/RTGS, credit and debit cards<\/strong>.<\/p>\n

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    Also Read:<\/strong> 21 Hidden charges in Savings bank Account<\/a><\/p>\n<\/blockquote>\n

    12.<\/strong><\/span> Following places would still accept till November 11<\/strong> (next 72 hours) for urgent services.<\/p>\n