• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

ClearIAS

UPSC: Latest News, IAS, IPS, UPSC Online Preparation

UPSC Prelims Test Series 2021Enroll Now
  • Home
  • Start
    • IAS
    • IAS Exam Eligibility
    • UPSC
    • UPSC Syllabus
    • UPSC Exam Date
    • UPSC Results
    • FAQs
  • Programs
    • Prelims
    • Mains
    • Interview
  • Buy
    • Courses
    • Mock Test Series
    • IAS Books
    • eBooks (PDF)
  • Free
    • Study Materials
    • Guidance
    • eBooks (PDFs)
    • Mock Exams
    • ClearIAS App
    • Downloads
  • Toppers
  • Blog
  • Login
ClearIAS » Current Affairs Notes » Rs.500, Rs.1000 Currency Notes Scrapped: What you need to know

Rs.500, Rs.1000 Currency Notes Scrapped: What you need to know

Last updated on October 20, 2017 by Clear IAS Team

Prime Minister Narendra Modi has announced the demonetisation of Rs. 1000 and Rs. 500 notes with effect from midnight. This step makes these notes invalid from today. Apart from this, government has also reduced the cash withdrawal limits from banks and ATMs. The move is seen as a major assault on black money, fake currency and corruption.

1,000 and 500 rupee notes will cease to be legal tender from midnight tonight!

500, 1000 rupee notes cease to be legal tender
1,000 and 500 rupee notes will cease to be legal tender from midnight tonight and those who are in possession of these notes can deposit the notes in their accounts in banks and post offices from 10th of this month to 30th of December this year.

Making old notes of Rs. 500 and Rs. 1000 invalid: What does this mean?

  • This would mean more than Rs 15 lakh crore worth of high-value legal tender being withdrawn from circulation.
  • Those who are unable to deposit the notes within the deadline for some reasons, can change them till 31st of March next year by furnishing ID proof.
  • New currency notes of 500 and 2000 rupees denomination notes to be introduced.
  • RBI has decided to limit the notes with higher value.
  • Though this move will bring a lot of hardships, mostly for the small traders and common man who don’t use plastic money, it is widely considered as a revolution in Indian economy.

Changes in cash withdrawal limits from Banks and ATM

  • Banks will be closed tomorrow.
  • ATMs will not work for next 48 hours.
  • Thereafter, amounts upto Rs. 2000 can be withdrawn from ATMs.

Emergency services will not be affected for next 72 hours!

People friendly measures to minimise inconvenience Rs 500 And Rs 1000/-

  • Petrol Pumps, CNG Stations, Milk Booth, Consumer Cooperative stores and crematoriums will accept old notes in the next 72 hours.
  • Railway booking counters, ticket counters of Government Buses and airline ticket counters will also accept the old notes for the next 72 hours.
  • Old notes of 500 and 1000 denominations will be accepted in Government hospitals for the time being.

War against corruption!

  • Mr Modi said, his government has waged a war against corruption.
  • Corruption, fake currency and terrorism are festering wounds, holding back the economy.
  • As per the sources the Government has unearthed 1.25 lakh crore rupees black money.

Are banks equipped to replace all old notes of Rs 500 and Rs 1,000?

  • According to Reserve Bank of India data, the total outstanding currency in circulation in the Indian economy as on October 28 stood at Rs 17.77 lakh crore. This figure was Rs. 16.42 lakh crore as on March 31. 2016.
  • 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, i.e. 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.
  • Outright replacement of around 2,300 crore banknote pieces will be an obvious logistical nightmare.
  • It is likely that the bulk of this would simply be deposited by people in banks rather than be exchanged for lower denomination notes.

What should you do with Rs.500 and Rs.1000 currency notes?

  • Deposit old notes at your nearest authorised banks or post offices between November 10 and December 30 (50 days) without any limit. There will, however, be a limit on withdrawal — Rs 10,000 per day and Rs 20,000 per week. This particular limit will be increased in the coming days.
  • Exchange of old notes for cash upto a limit of Rs 4000 possible at any bank or post office by producing valid ID proof.
  • Tip: To know more about the arrangements by Government and RBI read: What should you do with Rs.500 and Rs.1000 currency notes?

What should you do with Rs.500 notes?

ATM cash withdrawals: For a few days, only upto Rs. 2000 can be withdrawn from ATMs. This will be enhanced to Rs. 4000 later. The withdrawal limit for ATM will eventually be fixed at Rs. 10,000 per day and Rs. 20,000 per week.

What may be the future?

  1. Real Estate price, higher education, health care to come within the reach of common citizens, as money will be accounted in future.
  2. Funding for arms, smuggling, espionage, terrorists to be choked.
  3. Circulation of large volumes of counterfeit currencies to end.
  4. Open up new opportunities, neo-middle class and middle class.
  5. A lot of money will get into the banking system, as people will start depositing cash in the banks.
Print Friendly, PDF & Email
Share1K
Tweet
WhatsApp
1K Shares

Integrate Learning With Test-Taking!

Is UPSC Prelims your weak area?

Don’t worry!

We can help you score high marks!

Are you ready to practise the right way?

Yes, I want ClearIAS to help me score high!

Get our newsletter

Don't miss our email updates!

About Clear IAS Team

ClearIAS provides online IAS coaching, guidance, strategies, books, online study-materials and mock tests with a vision that no candidate should be left out of UPSC exam competition due to in-accessibility of expensive IAS classroom coaching.

We write simple, easy to understand articles, but always ensure high standards of quality.

Rated among the best, emerging online test preparation startups, Clear IAS also offers for free, the popular Clear IAS android app.

Reader Interactions

Comments

  1. Osheen says

    November 8, 2016 at 11:22 pm

    There are going to be a lot of implications of such a sudden revelation but it’ll lead to a lot of better things. Such a bombastic move.

    Reply
    • pavan says

      November 9, 2016 at 5:19 am

      this is just the bombardment strategy for all those who were reluctant to disclose their details in IDS

  2. Vishal Pawar (jalgaon) says

    November 8, 2016 at 11:53 pm

    It’s time to do something for nation

    Reply
  3. VIKASH says

    November 9, 2016 at 2:26 am

    Modi sir initiatives are highly recommendable. He helped India sail through the corruption.

    Reply
  4. Ajay says

    November 9, 2016 at 6:39 am

    It is one of the best move in the economic history of the country.It will beneficial to everyone in long term.In short term there may be some problems but I want to request my countrymen,please be patience and bear little pain for the country same as our brave soldiers bear the pain every day for the country.

    Reply
  5. giri says

    November 9, 2016 at 7:44 am

    I like this implement
    This is a future plans

    Reply
  6. madhu says

    November 9, 2016 at 8:34 am

    What is plastic money?

    Reply
    • Apu says

      November 9, 2016 at 5:25 pm

      Cashless money transacted in the form debit or credit card.

    • Meemansha Tripathi says

      November 9, 2016 at 11:19 pm

      Plastic money is a term that is used predominantly in reference to the hard plastic cards we use everyday in place of actual bank notes. They can come in many different forms such as cash cards, credit cards, debit cards, pre-paid cash cards and store cards

  7. Basskhem Rynjah says

    November 9, 2016 at 9:26 am

    although it is one of the best initiatives,but it will create lots of panic fear for the villagers and their will be lots of wrong rumours and that it happens in my village.

    Reply
  8. sandeep says

    November 9, 2016 at 9:59 am

    Great nation great thoughts

    Reply
  9. Himangshu Kashyap says

    November 9, 2016 at 9:52 pm

    long term initiative by the govt. against black money…everyone should support

    Reply
  10. Meemansha Tripathi says

    November 9, 2016 at 11:16 pm

    Mr. Modi on the name of BLACK MONEY, benefited himself on personal and professional level.

    Reply
  11. JEET says

    November 10, 2016 at 8:02 am

    good decision modiji…..u rock

    Reply
  12. m ramudu says

    November 11, 2016 at 8:24 am

    Im also supporting this move …but thus movement is not recommended for common people who don’t know wat about electronic fund transfer,plastic money etc and also india is a cluster of villages ..they are not going to bankfrequently either deposit or withdrawal of money….this movement is vulnerable for daily wages people who are solely depending on daily wages….hence alternative methods shoud be suggested for lower class people ,especially for farmers

    Reply
  13. Lahden Bhutia says

    November 11, 2016 at 12:33 pm

    This move is primarily targeted to counter terror funding, undisclosed cash in hand(within the country) and to check circulation of fake currency.. Still i guess cash held in foreign banks and black money in non-cash forms are less likely to be affected. Still its a Commendable step taken by the govt.. people should not hav any prblm in bearing some amount of hardship for the welfare and progress of the nation.

    Reply
  14. Chiranjibi says

    November 11, 2016 at 1:24 pm

    This is a super idea to control the black money

    Reply
  15. digvijay says

    November 14, 2016 at 12:10 pm

    Total implementation failure..push economy towards rural distress. Only problem to poor people. If government is more concern about black money why not making low for deposit rule in political account. Like people need I’d proof for any amount deposition……

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Aim to be an IAS Officer?

Nothing can beat practice!

Join ClearIAS Prelims Test Series 2021

Practice 40+ online mock exams!

Limited Period Offer: 40% OFF!

Enroll Now!

ClearIAS Study Materials for UPSC Prelims and Mains

  • Indian History - Indian History and Culture.
  • Geography - Indian and World Geography.
  • Economics - Indian Economy.
  • Indian Polity - Constitution, Social Justice etc.
  • General Science - Science and Technology.
  • Environment - Biodiversity, Climate Change etc.
  • Current Affairs - National and international.

ClearIAS Study Materials for UPSC Mains (Extra-Topics)

  • World History - GS paper 1.
  • Indian Society - GS paper 1.
  • Foreign Relations - GS paper 2.
  • International Affairs - GS paper 2.
  • Internal Security - GS paper 3.
  • Disaster Management - GS paper 3.
  • Ethics - GS paper 4.

ClearIAS Study Materials for UPSC Mains (Paper-wise)

  • Essay Paper
  • GS 1 Paper
  • GS 2 Paper
  • GS 3 Paper
  • GS 4 Paper

ClearIAS Online Mock Exams (Prelims and Mains)

  • Prelims Mock Exams
  • Mains Mock Exams (AWP)

Congrats! You are at the right place - ClearIAS!

  • 1 million+ monthly users!
  • 9,00,000+ ClearIAS App Downloads!
  • 4,50,000+ Facebook Followers!
  • 3,50,000+ Email Subscribers!
  • 3,00,000+ Registered Aspirants!

Prepare for UPSC Online!

Get Started

UPSC Online Preparation Guidance

  • UPSC - Union Public Service Commission
  • IAS - Indian Administrative Service
  • Civil Services Exam (CSE) - Exam Pattern
  • UPSC Syllabus - Subjects to learn
  • IAS Books - Books to learn
  • UPSC CSE Eligibility - Who can appear?
  • UPSC Exam Dates - When should you apply?
  • UPSC Result - Check UPSC Results
  • UPSC FAQs - Clarify your queries

What do toppers' say about ClearIAS?

Poonam Dalal

"Working 24*7 in the police for the last 5 years and been out of touch with the preparation, I took the guidance from your website, especially the ClearIAS prelims test series. I bought it and found it to be the best available online." - Poonam Dalal, ClearIAS Online Student

Read more reviews by UPSC Toppers...

Enroll in

ClearIAS UPSC Prelims Online Test Series 2021

Score High in the IAS Exam!

Trusted by Toppers

Limited Period Offer: 40% Discount!

Enroll now

Don’t lose out without playing the right game!

Adopt the 3 Strategies for Success in the UPSC Civil Services Exam.

Learn UPSC Strategies

  • Home
  • IAS
  • UPSC
  • FAQs
  • Blog
  • Login

UPSC Online Preparation

  • Union Public Service Commission (UPSC)
  • Indian Administrative Service (IAS)
  • Indian Police Service (IPS)
  • IAS Exam Eligibility
  • UPSC Free Study Materials
  • UPSC Exam Guidance
  • UPSC Prelims Test Series
  • UPSC Syllabus
  • UPSC Online
  • UPSC Books
  • UPSC Prelims
  • UPSC Mains
  • UPSC Interview

ClearIAS

  • About ClearIAS
  • ClearIAS Programs
  • IAS Coaching
  • Announcements
  • Book Review
  • ClearIAS App
  • Sitemap
  • Work with us
  • Advertise with us
  • Privacy Policy
  • Disclaimer
  • Terms and Conditions
  • Contact Us

UPSC 2021

UPSC Exam Calendar 2021

Follow us

Follow us on FacebookFollow us on TwitterFollow us on YouTubeFollow us on ClearIAS Learning AppFollow us on ClearIAS Test Prep AppFollow us on Telegram

Featured on

ClearIAS Featured in The Hindu
ClearIAS Featured in the Times of India
ClearIAS Featured in the New Indian Express
ClearIAS Featured in the Yourstory

and many more...

Copyright © 2020 - ClearIAS.com