How the move impacts the common Indian
The government has given 50 days' time period - 10 November to 30 December - to
exchange Rs 1,000 and Rs 500 notes at post offices and banks.
Those unable to submit all old currency notes within the deadline will be able to do so
at the Reserve Bank of India up till 31 March 2017 by providing a declaration.
You will have to stand in long queues at banks to replace your old currency notes with
There'll be a limit on the withdrawal of money from banks and post offices - Rs 10,000
per day and Rs 20,000 per week. This means if you do not use an ATM or electronic
transfer for transactions, you will have big problem in purchasing things from the
Impact on the economy
He decision to make the existing Rs 500 and Rs 1,000 notes illegal will be a setback for black
money hoarders. But it will also mean hard days for small-time retailers who trade in cash.
This means small-scale jewellers, grocery shop owners and small vendors will find it difficult to sell
their products in the absence of hard cash.
On the other hand, showrooms that accept credit and debit cards are likely to register a spike in their
sales, as people will have no option but to pay through their cards.
Kishore Biyani, chairman of Future Group, told NDTV that he was apprehensive about the
government decision because credit and debit cards account for only 30% of sales in his group's
Another impact is likely to be on the real estate market, which usually runs on mostly-cash deals
from people who like to stash undeclared money in the form of property.
While most economists kept their comments on the government
decision reserved, Abhijeet Sen, former member of the now-
defunct Planning Commission said: "The common man will have
big trouble in the coming days in dealing with this decision. People
in cities have ATMs as well as banks nearby, but people living in
rural areas will find it difficult to deal with this decision. They
usually keep cash at their homes, and cannot go to banks every
withdrawing Rs 500, Rs
1,000 notes from public
midnight is arguably the