09 November 2016

09 Nov. 2016: 08 Safar 1438: Vol: 8, No:31
Need to fill form to give back your old Rs 500, Rs 1000 notes: All Details
New Delhi:Prime Minister Narendra Modi on Tuesday shook the nation with his announcement of demonetising high value currency notes. Soon after all Rs 500 and Rs 1000 notes in circulation were “just paper with no value”, people across the country started queuing outside ATMs in panic. Even as the PM asked people to not panic, minutes after the announcement that notes were effectively invalid from midnight, people thronged their nearest ATMs.With an announcement that banks will be equipped to exchange people’s money by Friday, the government on Wednesday released the form that will be used to exchange the old notes of Rs 500 and Rs 1000 denomination. The ‘request slip’ will need you to produce a valid government-issued identity card, the name of your bank and branch.With an announcement that banks will be equipped to exchange people’s money by Friday, the government on Wednesday released the form that will be used to exchange the old notes of Rs 500 and Rs 1000 denomination. The ‘request slip’ will need you to produce a valid government-issued identity card, the name of your bank and branch.There are no restrictions on card payment, cheque, demand draft, electronic funds transfer. However, there is a limit on daily and weekly withdrawals. ATM withdrawals will be restricted to Rs 2000 per day and withdrawals from bank accounts will be limited to Rs 10,000 a day and Rs 20,000 a week.indian express 
Rs 500, Rs 1,000 banned: Black money hunt is fine but what about political parties, religious trusts?
Prime Minister Narendra Modi announced the demonetisation of Rs 1,000 and Rs 500 currency notes with effect from 12 am, 9 Nov.2016, practically giving no one any notice or clue of the impending move. While the economy grew by 30 percent between 2011 and 2016 and currency notes in circulation rose by 40 percent, the circulation of Rs 500 currency notes grew by 76 percent and Rs 1,000 notes by 109 percent said Economic Affairs Secretary Shaktikanta Das — a clear evidence if one were required of fake currencies being introduced into the system by terrorist outfits and countries inimical to India.While the move should send fear down the spines of people with unaccounted cash and halt the counterfeit producers of these denominations in their tracks at least for the time being, it would not affect those who have been parking their black money in real estate and gold, the two assets that have been defying crackdown. They would look askance at their brethren who innocently piled up unaccounted cash.
Banks would witness a surge of deposits of cash in these denominations from 10 November to 30 December the time given for one to do so. One can count upon honest people to avail of this facility because crooks would fear inconvenient questions especially if the deposit is large or in steady trickles.
Crooks especially the well-heeled moneybags would seek the sanctuary of political parties registered with the Election Commission of India because they (political parties) enjoy an immunity which no one does — no need to account for small donations i.e. Rs 20,000 and less. How convenient! Political parties might oblige their patrons — accept donations or pretended donations from them in these denominations which in turn can be disgorged by the political parties in bank counters or accounts without any fear of being challenged by the taxman to whom the smug reply would be they were small donations, period. The pretended or sham donations can be gotten back through several means duly camouflaged as regular transactions by the political parties playing footsie with the crooks. One wishes the Prime Minister had in his speech simultaneously announced the wrenching away of the small donation alibi from political parties.
Ditto for religious trusts that are chock-a-block in this country. Religious trusts too do not fear the taxman because their income is exempt from tax. Dubious religious trusts have been helping crooks launder their black money. This time round too they may play the handmaiden role by accepting the disagreeable currency notes and presenting themselves before the bank counters or depositing them into their bank accounts.
Crooks might also use the exchange counters open from the 10 November 2016 till 25 November 2016 to the hilt. Banks would be opening these counters, and one can exchange the demonetised notes in favour of those that are legal tender. The limit is Rs 4,000 per person subject to production of identity proof. The limit of Rs 4,000 might make them run errands to several banks spanning the entire fortnight during which the facility is available. But so what? Aren’t they indefatigable? To fool the CCTV cameras, they might not expose the same person to the same branch again and again!
Industrialists might also be tempted to rope in their fawning and obliging employees. Each one might be handed over a tidy sum that does not arouse any suspicion so that she may deposit it into her bank account before 30 December 2016. She dare not appropriate it as her own because employers know how to get the money back later on in currencies that are legal tender. The beauty of splitting of income, as well as stash of prohibited currency notes among several people, is they pass muster by their sheer smallness.
All in all, the move is a good one especially because it is both a frontal attack against black money as well as counterfeit money. The USA routinely demonises currency notes and brings newer versions with different watermarks and designs. That is precisely what the RBI has promised to do with the new Rs 500 and Rs 2,000 notes.
Are banks equipped to replace 2,300 crore pieces of Rs 500 and Rs 1,000 notes?
PM Narendra Modi’s announcement to disallow use of existing Rs 500 and Rs 1,000 notes from this midnight caught everyone by surprise.Here’s some quick numbers on the implications of this move.According to RBI data, the total outstanding currency in circulation in the Indian economy as on Oct.28 stood at Rs 17.77 lakh crore. We don’t know how much of this comprises Rs 500 and Rs 1,000 notes. But an indicator of what it could be can be seen from the RBI’s latest Annual Report. This data shows that out of the total Rs 16.42 lakh crore value of bank notes in circulation as on March 31, 2016, as much as Rs 14.18 lakh crore, ie over 86 per cent, consisted of Rs 500 and Rs 1,000 notes. In terms of volumes, out of the total 9026.6 crore banknote pieces, 2,203 crore or 24 per cent-plus were of Rs 500 and Rs 1,000 denomination.Simply put, the de-monetisation of Rs 500 and Rs 1,000 notes, which is what Prime Minister Narendra Modi has announced will happen from Tuesday night, would mean more than Rs 15 lakh crore worth of high-value legal tender being withdrawn from circulation. It is likely that the bulk of this would simply be deposited by people in banks rather than be exchanged for lower denomination notes: Outright replacement of 2,300 crore banknote pieces will be an obvious logistical nightmare. indian express
Decision to abolish Rs 500, 1000 notes ‘Heartless’ and ‘draconian’: Mamata
New Delhi:Calling it ‘draconian’ West Bengal Chief Minister Mamata Banerjee on Tuesday said that Modi government’s decision to abolish Rs 500 and Rs 1000 notes will be a huge blow to the Indian middle class. “Heartless and ill-conceived blow to the common people and the middle class in the fake name of anti-corruption. Withdraw this draconian decision,” Mamata Banerjee was quoted as saying by news agency ANI.ANI
Withdraw this draconian decision, tweets Mamata. Kejriwal retweets
PM Modi scraps Rs 500, Rs 1000 currency notes starting midnight Nov.8
Rs 2000 note comes with micro Nano GPS chip, to track exact location of currency: Reports
New Delhi: In what could be a major blow to black money hoarders, the new Rs 2000 note that was unveiled by the Reserve Bank of India on Tuesday comes with a micro Nano GPS chip that can help track the exact location of the note via a satellite.With the PM Narendra Modi scrapping the Rs 500, Rs 1000 notes on Tuesday in a move to fight against black money, RBI unveiled the new Rs 500 and Rs 2000 notes to replace them.Now, the interesting thing is, as per reports, the new Rs 2000 notes are embedded with a micro Nano GPS chip which will help locate the position of the currency via a satellite.The first of its kind and definitely a major blow to black money hoarders, the GSP chip will act as a tracker and help locate the exact location of the currency via a satellite.According to reports, the chip has been fitted in such a way that it can detect Rs 2000 notes even from 120 meters below the ground.
Rs 500 and Rs 1,000 notes pulled out of circulation immediately: PM Narendra Modi
Why Modi is taking away your Rs 500 and Rs 1,000 notes
Deposits of old Rs 500, Rs 1000 notes in banks not to enjoy tax immunity: Jaitley

New Delhi:Finance Minister Arun Jaitley on Wednesday said deposits of now-defunct old Rs 500 and Rs 1,000 currency notes in bank accounts will not enjoy immunity from tax and the land of law will apply on source of such money. A day after the government announced the withdrawal of Rs 500 and Rs 1,000 banknotes in the country’s biggest crackdown against black money, corruption and counterfeit currency, Jaitley said old higher-denomination currency notes have to be deposited in bank accounts to get newer or smaller denomination currencies.PTI 


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