all you need to know about the ban on existing currency and introduction of new currency in India RBI

2. V A M S H I K R I S H N A R A O K
S E M E S T E R 7
A R C H I T E C T U R E
N A T I O N A L I N S T I T U T E O F T E C H N O L O G Y ,
C A L I C U T

3. WHAT WE KNOW?
• Existing 500 and 1000 notes are
banned from Nov 9th 12 AM.
• To take action against black money
• No ATM or Bank will work for 2 days
• New 500 and 2000 notes are going to
be introduced
• We can exchange old notes from banks
before 30th December

4. WHAT MORE WE NEED
TO KNOW?

5. REASONS?

6. • Notes are banned in order to
make India free from black
money and corruption
• To stop illegal funding to
terrorists through methods
like hawala.
• to stop Illegal funding to
political parties during
elections
• To encourage cashless
transactions

7. HOW IT ALL STARTED
• Pradhan Mantri Jan dhan yojana (august 2014):
• encouraging everyone to have bank accounts. (23.93 crores new accounts were
opened)
• Linking bank accounts with aadhar
• Income disclosure scheme:
• law passed in 2015 for disclosure of black money by paying 60% tax.
• And then banning the notes

8. FOR NEXT 72 HRS AFTER BAN OLD
NOTES WILL BE ACCEPTED AT:
• Govt hospitals
• Railway ticket booking counters
• Govt busses and airlines ticket booking counters
• Authorised Petrol, diesel and gas stations
• Authorised Consumer cooperative stores
• Authorised milk booths
• Crematoria and burial grounds
• Toll gates will not charge money for next 72 hours

9. FOR THE NEXT 4-5 DAYS:
• Banks and ATMs are closed down to make arrangements for new notes.
• Banks will be open on Saturday and Sunday for our convenience
• Go to any bank, post office or CDM to exchange your old notes before 30th of
december.
• After that you can exchange at RBI authorised centres.
• Maximum of ₹4000 worth cash will be given and rest will be deposited in account
• Cashless transactions can be done without any objections.

12. AFTER THAT…
• Till Nov 19 maximum of 2000 cash can be drawn from ATM per day after that it will be
increased to 4000 per day
• And using cheque maximum of 10000 per day including withdrawal from ATM and
20000 per week
• Now, a person having above ₹2.5 lakhs in his bank account is questionable.
• Any sort of income mismatch with his income certificates would be considered as “Tax
Evasion” and a person will have to pay 200% penalty on that amount.

13. POSITIVE IMPACTS
• deflation
• Massive decline in black money
• Almost End of Fake currency racket initially
• Obstacle for terrorism
• Reduce in corruption for few months
• Fair Election
• Encourages cashless transactions

14. NEGATIVE IMPACTS
• Inconvenience to people
• Loss to common People
• Loss of Tax Payers Money
• later cause increase in corruption as it will be easy to store Rs 2000 notes
• Tourists
• Impact on vegetable and fruit sellers and other small businessmen

15. FLAWS IN THE SCHEME
• 1. We cant do anything now on money which is out of India
• 90% of the black money is with 5% people in swiss bank or in the form of properties in
foreign countries which will not be affected.
• 2. Most of the black money is in the form of properties and gold.
• 3. People will start doing the same with the new notes as they were doing with the old
notes
• 4. General people facing big uncertainty and problems in daily life.
• 5. Uncertainty in gold and silver