After the Prime Minister scrapped 500 and 1000 rupee notes on November 8th 2016, there have been long queues in front of banks, as citizens line up to exchange their old 500 and 1000 rupee notes. In order to reduce multiple exchanges in a day, Government has asked banks to put indelible ink on the finger of citizen’s, who exchange old notes at the bank. This is same as the ink used in elections. Ink will be marked on your right hand, unlike elections where it’s marked on your left hand.
Now a person can exchange old currency, up to INR 4,500 in a bank, by using a valid ID proof. Since multiple ID proofs can be used to exchange old notes, citizens are using different ID proofs, to exchange notes at different banks.It has come to the notice of the Government, that black money hoarders have organized a group of people, to convert their black money into white money. The government wants to stop this fraudulent method, used to convert black money to white. The Government has now reduced the exchange limit of old currency notes, to INR 2000 per person. Now citizens with black money, cannot come back multiple times, to exchange old currency and choke bank queues.
See Also: Foreign Exchange Market In India
People with black money are also using Jhan Dhan bank accounts, to deposit unaccounted money. In order to avoid this, the Finance Ministry has set an upper limit of INR 50,000, for cash deposits into these PMJDY accounts. Also close watch has been kept on deposits made in these accounts.
Yes, something needs to be done, to reduce long queues in front of banks. The Government is taking the initiate and has come up with some really smart innovations.
The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.
Subscribe to our Youtube Channel
Hello friend! I am your personal financial advisor. By the end of this interactive session, I will help you to plan yours and your family's finances to ensure a better future.