If you haveThe Prime Minister of India, Mr. Narendra Modi certainly managed to take a step forward towards his initial promise of “Ache Din”. All around the globe, Modi is being praised for his bold, new step to reform the economy of India and to fight the deeply rooted issue of fake currency and unaccounted black money in the Indian economy.
As per this initiative, the existing 500 and 1000 rupee notes are no longer be valid since 9th November, 2016, i.e. the midnight of 8th November, 2016. There will be new notes of Rs. 500 and Rs. 2000 issued and the people need to exchange their old currency for new one or deposit their money in the banks. This can be done by visiting the nearby bank and carrying along with you your identity proof. The Aadhar card is a valid identity proof and can be used for this purpose.
How Can Aadhar Help You Exchange your old Rs. 500 and 1000 Notes?
If you have an Aadhar Card, you can certainly get your old currency notes of Rs. 500 and Rs. 1000 exchanged at the bank, faster. As it one document which contains your ID as well as Address, carrying it may be a better option. In case you do not have an Aadhar, then you can also carry any other valid ID proof and address proof like PAN Card, Passport, Bank Photo Passbook, Driving License etc.
Also, if Aadhar is linked to your bank account it will further help in any verification the bank may require.
But first… let us understand why the step was taken.
Reasons for Introducing New Currency Notes
The reason behind the step is an attempt to fight corruption. Basically, the incidences of fake Indian currency in higher denominations, i.e. of 500 and 1000 saw a substantial rise in the recent era. With India remaining cash based economy; the circulation of fake currency continues to be a peril. Also, there is a lot of black money lying around which seriously damages the economy. To curb these two major problems, this scheme has been introduced by PM Modi.
As we already know, the 500 and 1000 rupee bank notes will no longer be legal tenders with effect from 9th November, 2016, 12:00 AM. Implication of this step would be that the old denomination notes of 500 and 1000 can no longer be used for business transactions or store of value for future usage.
The move will positively impact the economy in the upcoming days as it aims at making the Indian economy free from corruption. If all the people hoarding huge sums of money are forced to come forward and pay their share of taxes, the government would be in an advantageous position and economy would flourish.
How does that Impact the Common Man?
If you have paid your taxes on your income and rightfully declared your income, the money you own is white, you need not panic from this decision of the government.
The RBI has come up with these 25 pointer FAQs for answering your common concerns and queries with this regard. You can refer to that here. Below we present to you a summary of the important dates and things to remember.
- From 10th November 2016 till 30th December 2016, you can get your old notes exchanged for the new ones.
- Only notes of value upto Rs. 4000, can be exchanged per day, until November 24.
- From 25th November, more than Rs. 4000 can be exchanged.
- The new notes can be withdrawn from 10th November 2016. The initial limit to withdraw the amount is Rs. 2000 per card until 18th November via ATM and from 19th November 2016, you will be able to withdraw Rs. 4000 per day from one card.
Where to Exchange Your Old Rs. 500 and Rs. 1000 Notes Using Aadhar Card or any other Valid ID Proof?
- Visit your nearest bank branch or Post Office for exchange of notes with your Aadhar Card or any other valid ID and Address proof to help KYC.
- Another option is to deposit all your old notes in the bank, this can also be done from 10th November 2016 till 30th December, 2016 in bank and post office.
- However, if you fail to deposit your notes till 30th December, you can make the deposit till 31st March 2017 in a specified RBI office.
- If the new notes are withdrawn from a bank or post office [Not an ATM], the limit from 10th November is Rs. 10,000 per day and max Rs. 20,000 per week.
It should be remembered that in order to avail any transaction, you must have an identity proof with you. This can be your driving license, PAN Card or Aadhar card. For transactions amounting to huge money, carrying your PAN card along with Aadhar or any other proof is recommended.