What Is Demonetization Scheme – Things You Should Know

By | November 11, 2016

This is one of the boldest step taken by Govt of India in the history of Indian economy to ban the currency Rs 500 & Rs 1000 and introduction of new Rs 2000 notes. This reason for this is very sensitive and as a common man we may come to know about the actual story behind this after the actual impact. In this article I will try to explain about this demonetization of Indian currency or you can say surgical strike against black money & demonetization of currency to control inflation.

You can easily find the demonetization meaning in Hindi or Urdu or any other language. In fact there are many demonetization YouTube videos available. But in this article I will explain the what happened in India and any why that happened. Check out the How To Fill Up Currency Exchange Form guide in case you are planning to go to bank today.

What is demonetization of currency

The number of fake currency or you can say fake rs 500 notes or fake Rs 1000 notes has been increased in uncontrolled level in last few years in India. Personally I have received few times and also seen my friends also faced the same even from ATM withdrawals. Most of the time it is impossible for us to identify the fake notes.

The fake currency issue has become so large that these notes are started using for anti-national and illegal activities. Which further increase corruption in our country. The rise of black money in our country has become one of the major issue which has created a parallel economy which may kill our growth or economy in near future.

To stop this kind of activity further, Govt of India has come up with a solid plan of discontinuation of the High denomination notes of Rs 500 & Rs 1000 without the prior information, so that people having the black money or fake currency can’t get any time to manage their money. This is called Demonetization Scheme.

What is This Scheme

The legal tender character of the notes in denominations of Rs. 500 and Rs. 1000 stands withdrawn. In consequence thereof withdrawn old high denomination (OHD) notes cannot be used for transacting business and/or store of value for future usage. The OHD notes can be exchanged for value at any of the 19 offices of the Reserve Bank of India or at any of the bank branches or at any Head Post Office or Sub-Post Office.

You can find out a detailed guide and all major questions answered in RBI’s website. Here are the questions clarified with valid answers. just follow the website, I have just shared the questions here, not the answers. 🙂

  • How much value will I get?
  • Can I get all in cash?
  • Why I cannot get the entire amount in cash when I have surrendered everything in cash?
  • Rs. 4000 cash is insufficient for my need. What to do?
  • What if I don’t have any bank account?
  • What if, if I have only JDY account?
  • Where can I go to exchange the notes?
  • Need I go to my bank branch only?
  • Can I go to any branch of my bank?
  • Can I go to any branch of any other bank?
  • I have no account but my relative / friend has an account, can I get my notes exchanged into that account
  • Should I go to bank personally or can I send the notes through my representative?
  • Can I withdraw from ATM?
  • Can I withdraw cash against cheque?
  • Can I deposit withdrawn notes through ATMs, Cash Deposit Machine or cash Recycler?
  • Can I make use of electronic (NEFT/RTGS /IMPS/ Internet Banking / Mobile banking etc.) mode?
  • How much time do I have to exchange the notes?
  • I am right now not in India, what should I do?
  • I am an NRI and hold NRO account, can the exchange value be deposited in my account?
  • I am a foreign tourist, I have these notes. What should I do?
  • I have emergency needs of cash (hospitalisation, travel, life saving medicines) then what I should do?
  • What is proof of identity?
  • Where can I get more information on this scheme?

If I have a problem, whom should I approach?

You may approach the control room of RBI by email or on Telephone Nos 022 22602201/022 22602944

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