Monday, 19 December 2016

NoteBan - Can Deposit Old Notes Worth 5,000-Plus Only Once Till Dec 30: Government


Old notes worth more than Rs. 5,000 can be deposited only once per account until December 30, a statement issued by the government has said.

The new order on notes ban issued by the Finance Ministry on December 17 said that there will be no restriction on amount deposited towards the new black money disclosure scheme the Pradhan Mantri Garib Kalyan Yojana.

In a bid to check corruption, Prime Minister Narendra Modi on November 8 banned Rs. 500 and 1000 currency notes, making these notes invalid in a major assault on black money, fake currency.

The sudden ban on Rs. 500 and Rs. 1,000 notes led to a massive cash crunch, with people waiting for hours outside banks to exchange, deposit and withdraw banned notes.

To ease the situation for cash-strapped people, the government allowed the use of old Rs. 500 notes at hospitals, medicine shops and for water and electricity bills – the exemption ended last week.

While announcing the notes ban, PM Modi said the move is aimed at bringing back black money into the system and deter terror financing. The notes ban has wiped out 86 per cent of the money in circulation.