Demonetization means the old unit of currency will be retired and shall be replaced with a new currency. This is the single best step the government of India took after Independence. The British started the corrupt system and it has been continued till now. But now the Modi government has taken a bold step to turn off the black economy into white.
It is not the first time in the history of India that demonetization has happened, it occurred in 1944 and 1978. The act was not successful due to various reasons. But now this time everyone is looking for a greater impact of this bold move. Very fast and sudden decision of government will be delivering expected results.
Tax professionals have welcomed the move by the Modi government to ban the Rs 500 and Rs 1000 notes. It is a drastic but positive step that will help stamp out the menace of black money.
Now let us see impacts of Demonetization in India.
- Demonetization resulted in wiping off black money stored in the form of 500 and 1000.
- The drive of demonetization has a significant effect on Real estate market. To reduce the risk of capital gain tax the transactions usually took place through cash. Black money was responsible for higher rates of properties in the metro cities. So demonetization also had a great impact in fall of real estate prices.
- India moving towards digital payments. People are adopting virtual wallets such as Ola money and Paytm for payments.
- The public is facing problems due to the scarcity of notes.
Here are FAQ’S On 500 and 1000 rs notes
- What actually is this scheme? And why it has been introduced?
The scheme is all about demonetization of 500 and 1000 rs notes all over India. That is these currencies would be invalid from now.
India being a cash economy the major assaults on black money, fake currency, corruption and terrorist activities are been conducted with this 500 and 1000 rs notes. In consequences thereof, these bank notes cannot be used for transacting business or store of value for future usage.
- How much can I exchange from the bank?
You will get 4500 per person in cash exchange.
- What if a person doesn’t have a bank account?
An individual can open a bank account by approaching a bank with the necessary documents to be filled.
- Can I withdraw from ATM?
Yes, but the limit is 2500/- per withdrawal. Withdraw limits have been increased.
- Where can an individual still use 500 and 1000 rs notes?
500 and 1000 rs notes are only valid at government hospitals and gas stations.
6. For any help whom should I approach?
You can contact www.rbi.org.in or you can email to the RBI control room email@example.com or you can call at 022-22602201/22602944.
Who says you need to have a cash to get back to our normal life. Debit card and credit card are the life changer in this peek time. A swipe here and a touch make the life easy. And while you are using these digital things do help those who don’t have bank accounts. Together let us move towards a cashless India