Indian Prime Minister Narendra Modi announced that the 500 and 1,000 rupee notes would be withdrawn from circulation to plunge the country`s economy into chaos. Addressing the nation, Modi said: “The exchange of 500 and 1,000 rupee notes offered as currency will be stopped from today. Black merchants and traitors who use black money will not be able to move large sums of money, and the 500 and 1,000 rupee notes will become worthless pieces of paper. These citizens, who earn honestly and with hard work, their interests are protected. Modi stressed that citizens who have 500 and 1,000 rupee notes do not need to panic as the money can be deposited in banks or post offices by the end of 2016. He said: “These measures are part of our fight against corruption, black money and counterfeit notes. The ordinary citizen who fights is strengthened. You don`t need to rush to the bank tomorrow, you have 50 days. “Banks and ATMs are closed on Wednesdays. High-quality banknotes will still be accepted in hospitals or in case of emergency until the new year, the prime minister said. This move is an attempt to end the booming economy of untaxed cash transactions, which allows corruption and the financing of terrorist groups, and keeps counterfeit notes in circulation. The 100, 50, 20, 10, five, two and one rupee notes are legal tender and will not be affected by the decision, the prime minister said, adding that all banks and ATMs will be closed on Wednesday and ATMs in some places will also be closed on Thursday. Without naming Pakistan, the prime minister explicitly referred to cross-border terror financed by counterfeit banknotes.

“In the country`s development history, there comes a time when powerful and decisive decisions are needed,” Modi said. Five hundred 1,000 rupee notes were no longer legal tender as of midnight on Tuesday. Prime Minister Narendra Modi made the announcement in a surprise speech to the nation on Tuesday night. He said the decision was made to eradicate the threat of black money and corruption. Modi announced that existing 500 or 1,000 rupee notes can be deposited into a person`s bank or postal accounts between November 10 and December 30. A currency value of up to 4,000 rupees can be exchanged by any bank or post office per day until November 24 upon presentation of a government ID. However, for 72 hours, public hospitals, railways, planes and government bus counters continue to accept old tickets. Old tickets will be used until the 11th. November was also accepted at gasoline, diesel and gasoline stations approved by state public sector oil companies, government- or centrally approved consumer cooperative enterprises, state-approved milk stalls and crematoriums. In a surprise televised address on Tuesday night, Modi said the demonetisation of India`s most valuable banknotes, worth around 6 and 12 pounds, would begin at midnight. On 10 November 2016, then-Economy Minister Shaktikanta Das announced that a new £1,000 note would be published in the new Mahatma Gandhi series in the coming months. [3] But on February 22, 2017, it went back to his previous announcement to deny it, claiming that there was no plan to reintroduce the ticket.

[4] In order to curb the inflationary volume of banknotes in circulation, the 1000 mm note was reintroduced in November 2000 under the government of Atal Bihari Vajpayee as part of the Mahatma Gandhi banknote series. These were demonetized on November 8, 2016 by Indian Prime Minister Narendra Modi on the alleged grounds of preventing the issuance of counterfeit currency and fighting corruption and black money in India. A government official justified the last-minute announcement to demonetize banknotes, saying the move was necessary to stop terrorists and drug cartels “in their footsteps.” “A moment of surprise is essential, otherwise they would have taken the necessary precautions,” he said. The official described the action as “surgery because the tumor had to be removed to prevent recurrence.” He claimed that this would lead to a reduction in inflation as conspicuous consumption would decrease. According to him, “the tumor of corruption could not be fought by proven, tested and failed methods” and it was time to apply new methods to defeat India`s enemies. As of March 2016, 14 lakh crores of rupees of 16 crores of rupees were worth the currency issued by the RBI in denominations of 500 rupees and 1,000 rupees, according to official data from the Central Bank. On 8 November 2016, Prime Minister Narendra Modi announced that “from midnight on 8 November 2016, all ₹1,000 notes from the Mahatma Gandhi series will not be accepted as legal tender”, although new ₹500 and ₹2000 notes from the new Mahatma Gandhi New series were introduced. [8] The Reserve Bank of India will issue new Rs 500 and Rs 2,000 notes from 10 November. The new 500 rupee note will be the Red Fort and the new Rs. Mangalyaan will show 2,000 notes, Economy Minister Shaktikanta Das said at a press conference on Tuesday night. These notices will be available from 10 November.

The prime minister said the country`s most valuable banknotes would be withdrawn from circulation as part of the crackdown on “black money” (your legal guide to estate planning, inheritance, wills and more). “Your money will be your money. You don`t have to worry about it. We have taken steps to ensure that citizens have as little difficulty as possible,” he said. 2HUF can help you save significant income taxes: this move is also part of Modi`s efforts to crack down on tax evasion. Under the government`s revenue disclosure system, which expired in September, holders of undeclared income and assets received an amnesty from criminal charges in exchange for volunteering and paying a 45 percent tax and penalty. In August, the government passed the Goods and Services Act, which for the first time brought Together India`s 1.25 billion people in a single market and combined various state taxes into a single global tax. 4How to save income tax on capital gains from the sale of a home Mr Modi said there would be no restrictions on cashless payments by cheques, bills of exchange, debit or credit cards and electronic money transfers.

Download the Economic Times News app for daily market updates and live economic news. Modi`s announcement is controversial in India, where a huge shadow economy accounts for 20% of GDP and operates with impunity. The move will anger corrupt politicians, including in Modi`s own Bhartiya Janata party, who accept bribes. Monetary values put into circulation by the Reserve Bank of India until March 2016 Once the ATMs go live, there will be a withdrawal limit of Rs 2,000 per debit card, which will then be increased to Rs 4,000, Modi said in a 40-minute televised address to the nation. However, there will be a total limit on bank withdrawals of Rs. 10,000 per day and Rs. 20,000 per week, which will be increased in the coming days. A government official said the move was necessary to stop terrorists and drug cartels “in their footsteps.” “A moment of surprise is essential, otherwise they would have taken the necessary precautions.” The official described the action as “surgery because the tumor had to be removed to prevent recurrence.” 3Incoming a tax refund not yet received? These may be the reasons 1Can you ask for the new tax benefit when filing late tax returns?. He claimed that this would lead to a reduction in inflation as conspicuous consumption would decrease. According to him, “the tumor of corruption could not be fought by proven, tested and failed methods” and it was time to apply new methods to defeat India`s enemies. As of March 2016, 14 lakh crore of rupees out of a value of 16 lakh crore of rupees issued by the RBI were in denominations of 500 rupees and 1,000 rupees, according to official data from the central bank. 5Will the APY contribution be deducted from income tax once you have completed your subscription to the taxpayer? With this announcement, Modi is strengthening his reputation as a leader who has fought corruption and strengthened the economy.

He said: “When [the BJP] was elected in 2014, there was a discussion between the BRIC [Brazil, Russia, India and China] that the `I` among the BRICS faltered. But India is now a star, a glimmer of hope, and that is a statement made not by us, but by the IMF and the World Bank. ».