The nation came to a standstill after PM Narendra Modi announced that Rs.500 and Rs.1000 would cease to be legal tender from midnight tonight. People are panicking about the money, however there is not much to be worried about. Unless you have stack of illegal cash in your basement.
Here are 8 things that you need to know about the cancellation and how it will affect your life.
1. No restrictions of any kind on non-cash payments.
People who have their money safe in their savings accounts need not worry about their notes. There would be no restrictions of any kind on non cash payments by cheques, demand drafts, debit or credit cards and electronic fund transfer.
2. Be prepared to stand in queue at the ATM.
Obviously, you will have to run to the ATM if you don’t have 100 rupee notes because after midnight tonight Rs 500 and Rs 1000 notes can’t be used for any transaction. Also on the 9th November and in some places on 10th November, ATMs won’t work.
3. In the first few days, there will be a limit of Rs. 2000 per day per card.
This would then be raised to Rs 4000 later.
4. Old notes to be deposited from 10th November to 30th December
Exchange old notes of Rs 500 or Rs 1000 at any bank, post office by showing your ID proof. However, there is a limit of upto Rs 4000 till November 24th.
5. For 72 hours, Government hospitals will continue to accept the old notes for payment
For next three days, the notes will work at the following places
– Railway ticket booking counters
– Milk booths
– Crematoria and burial grounds
– Petrol diesel and gas stations
6. You cannot exchange other people’s cash
As all banks would have CCTV cameras that would monitor the exchange of cash, one has to show their personal ID.
7. Take a look at the new notes
They would be introduced on November 10.
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8. Rs 10, 50, 20 and 100 are all valid
And so will be the coins.