Sab ka sarkaar, sab ka vikas (Government and progress for all.)
In an extremely bold move against corruption, Prime Minister Narendra Modi announced that Rs 500/- and Rs 1000/- will no longer be issued as legal tender from Wednesday. In his late evening broadcast, he mentioned that all circulating Rs 500/- and Rs 1000/- notes need to be deposited at post offices and banks by 30th December, 2016. Concessions shall be allowed for use of these currency notes in government-managed hospitals till 11th November, 2016. People who are unable to deposit 500 and 1000 rupee notes by December 30 owing to any reason, may change the notes till March 31, 2017 by furnishing ID proof.
Modi, who is halfway through is term, is fulfilling his election promise to fight black money or unaccounted income. In his speech, he states that while our nation ranks number one in economic growth, we’re ranked 100 in global corruption rankings.
The Reserve Bank Of India (RBI) shall issue new currency notes of Rs 2000 and Rs 500. The one-time chance to declare their unaccounted wealth led to declarations of just about 25 billion rupees in tax last year, while the income declaration program this year met with a similar response.
Experts believe that this surprising and powerful act to curb black money will have a deflationary impact in general, and real estate prices are bound to fall remarkably. Not only is his fight against black money, but also against terrorism, for all terrorists have been victimizing India by thriving on fake currency.
Please note that the ATMs won’t work in many places on November 9th and 10th.
Watch Narendra Modi’s complete statement here: