This document provides an overview of India's recent demonetization of Rs. 500 and Rs. 1000 banknotes. It discusses the current status of the withdrawn notes and exchange process. The key points are: - PM Modi announced the withdrawal of the Rs. 500 and Rs. 1000 notes on November 8th, making them invalid as legal tender. Banks will exchange the old notes for new Rs. 500 and Rs. 2000 notes until December 30th. - Cash withdrawals and transactions will face limits in the coming weeks to manage cash flow as new notes enter circulation. Electronic payments are unaffected. - The goal is to curb black money, corruption, counterfeit currency, and terrorist funding by removing the higher

1. DEMONETIZATION – A
WELCOME OR A
WORRY ?
By CA Mehul R Shah

2. TABLE OF CONTENT
 THE CURRENT POSITION
 FUTHER DETAILS
 THE NEXT STEP
 ABOUT NEW NOTES
 A PLANNED STEP TO CURB BLACK MONEY
 WHY THE SUDDEN WITHDRAWAL
 WHAT IF YOU ARE AN NRI/FOREIGN
TOURIST?!
 MISCELLANEOUS
 CONCLUSION
 THANK YOU

3. THE CURRENT POSITION
PM Narendra
Modi
demonetizes Rs.
500 and Rs.
1000 Notes
Rs.500 and
Rs.1000 Notes
Valid Legal
Tender Until
08/09/2016
12:00 Pm
Banks to not
function on 9th
Of November
2016
ATM’s to not
function on 9th
and 10th of
November

4. FURTHER DETAILS
Banks to exchange old notes for new notes from
10th of Nov till 30th of Dec
ATM’s to restrict daily withdrawal limit upto
Rs.2000/day/card till 18th Of Nov
Cash withdrawal against cheque upto Rs.10000/day
subject to ceiling of Rs.20000/week till 24th of Nov
All electronic modes of payment to be unaffected

5. THE NEXT STEP
Those who
miss the 30th
Dec deadline
can exchange
till 31st of
March
New Notes of
Rs.500 and
Rs.2000 will
come into
circulation
Govt.
Hospitals,
Pharmacies ,
Railways ,
Petrol Pumps
to accept old
notes till 11th of
Nov
ATM Limit to
be relaxed
upto Rs.4000
in the coming
days

6. ABOUT NEW NOTES
NGC would help the
government to keep
track of the notes
Rs.2000
notes to
contain
NGC
New Notes in
denomination
of Rs.500
and Rs.2000

7. A PLANNED STEP TO CURB
BLACK MONEY

8. A PLANNED STEP TO CURB
BLACK MONEY

9. A PLANNED STEP TO CURB
BLACK MONEY

10. WHY THE SUDDEN
WITHDRAWAL
India being
primarily a cash
economy has
resulted in Fake
Notes funding
illegal activities
such as
Incidence of
higher
denomination
notes in India
has increased
and lack of
safety features
in notes has
made possible
illegal activites
through it
The legal tender
character of the notes in
denominations of 500
and 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withdrawn.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
Reserve Bank of India
or at any of the bank
branches or at any Head
Post Office

11. WHAT IF YOU ARE AN
NRI/FOREIGN TOURIST?!
People not present
in India can
authorize someone
on their behalf to
exchange the notes
Foreign Tourist can
exchange notes
upto Rs.5000 in the
next 72 Hours
Person not having
bank account can
authorize someone
in writing to
exchange the notes
NRI can deposit the
old notes in their
NRO account in
banks
Authorization to be
in written form along
with the
exchanger’s proof of
identity

12. MISCELLANEOUS
Exchange of
notes to be
made only on
ID Proof
Valid ID Proofs
are Aadhar
Card , Pan
Card , Driving
License etc
Old Notes can
be deposited
in Cash
Machines and
Cash
Recyclers
Notes
exchanged
after 30th of
Dec to require
additional
documentation

13. CONCLUSION
One
notification
to tackle
Terroris
m
Fundin
g
Black
Mone
y
Corrupti
on
Counterfe
it
Currency

14. These are just my
opinion. Opinion are
like wrist watches. All
show different times
but all think that their
time is correct…

15. ABOUT THE AUTHOR
Author, Mr. Mehul Rasesh Shah is a member of the ICAI.
He has pursued certificate Course in International Taxation in the
year 2012 conducted by the ICAI. He has also completed his
Diploma in IFRS (ACCA, London) and Advanced Diploma in
Management Accounting (CIMA, London) in the year 2013.
Currently he is handling many Appellate proceedings including
representation before the Tribunal and Settlement Commission.

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