PM scraps Rs 500, Rs 1000 notes from midnight tonight: Rs 1000 rupee and Rs 500 rupee notes will no longer be a legal tender starting midnight tonight, says PM Modi.
"You have 50 days (From 10 Nov to 30 Dec) to deposit notes of Rs 500 & Rs 1000 in any Bank or Post office," said Modi.
"Those who can't sumbit the notes within the deadline, can exchange it at Reserve Bank of India by providing a declaration," the PM added.
20:16 PM's address to the nation:
- Our enemies from across the border run their business with counterfeit notes and it has been going on for years
- Black money and corruption has taken roots in the country, these are the biggest obstacles in eradicating poverty
- Our motto has been 'Sabka Saath, Sabka Vikas'. We will continue to fight poverty
- Every country's history has seen a phase where a strong measure was called for In all our policies, we are dedicated for the upliftment of entire society
Finance Ministry says: With a view to curbing financing of terrorism through the proceeds of Fake Indian Currency Notes and use of such funds for subversive activities such as espionage, smuggling of arms, drugs and other contrabands into India, and for eliminating black money which casts a long shadow of parallel economy on our real economy, it has been decided to cancel the legal tender character of the high denomination bank notes of Rs 500 and Rs 1000 denominations issued by RBI till now.This will take effect from the expiry of November 8, 2016. FICN in circulation in these denominations are comparatively larger as compared to those in other denominations. For a common person, the fake notes look similar to genuine notes.Use of FICN facilitates financing of terrorism and drug trafficking. Use of high denomination notes for storage of unaccounted wealth has been evident from cash recoveries made by law enforcement agencies from time to time.
High denomination notes are known to facilitate generation of black money. In this connection, it may be noted that while the total number of bank notes in circulation rose by 40% between 2011 and 2016, the increase in number of notes of Rs 500/- denomination was 76% andfor Rs 1,000/- denomination was 109% during this period. New Series bank notes of Rs 500/- and Rs 2,000/- denominations will be introduced for circulation from November 10, 2016.Infusion of Rs 2,000/- bank notes will be monitored and regulated by RBI. Introduction of new series of banknotes which will be distinctly different from the current ones in terms of look, design, size and colour has been planned.
Note ban to hit resale property market, small builders: Unorganised builders and secondary (resale) property market would be adversely impacted following the government's decision to demonetise Rs 1,000 and Rs 500 notes with effect from midnight, according to real estate developers and consultants.
Housing prices could witness downward pressure, helping revive demand in the sluggish housing segment, they added.
"We are moving toward the cashless economy which is a sign of maturing economy. It's a step in the right direction," DLF CEO Rajeev Talwar said.
"The blackmoney was mostly in land purchase. But in last 6-7 years, there has been no major land buying in this sector.Big builders and organised players are already using bank channel and they would gain from this decision. Unorganised players and the secondary market would be impacted," he said.
Asked about impact on real estate sector especially housing, Talwar said: "There could be downward pressure on prices, which will boost demand".
"You have 50 days (From 10 Nov to 30 Dec) to deposit notes of Rs 500 & Rs 1000 in any Bank or Post office," said Modi.
"Those who can't sumbit the notes within the deadline, can exchange it at Reserve Bank of India by providing a declaration," the PM added.
20:16 PM's address to the nation:
- Our enemies from across the border run their business with counterfeit notes and it has been going on for years
- Black money and corruption has taken roots in the country, these are the biggest obstacles in eradicating poverty
- Our motto has been 'Sabka Saath, Sabka Vikas'. We will continue to fight poverty
- Every country's history has seen a phase where a strong measure was called for In all our policies, we are dedicated for the upliftment of entire society
Finance Ministry says: With a view to curbing financing of terrorism through the proceeds of Fake Indian Currency Notes and use of such funds for subversive activities such as espionage, smuggling of arms, drugs and other contrabands into India, and for eliminating black money which casts a long shadow of parallel economy on our real economy, it has been decided to cancel the legal tender character of the high denomination bank notes of Rs 500 and Rs 1000 denominations issued by RBI till now.This will take effect from the expiry of November 8, 2016. FICN in circulation in these denominations are comparatively larger as compared to those in other denominations. For a common person, the fake notes look similar to genuine notes.Use of FICN facilitates financing of terrorism and drug trafficking. Use of high denomination notes for storage of unaccounted wealth has been evident from cash recoveries made by law enforcement agencies from time to time.
High denomination notes are known to facilitate generation of black money. In this connection, it may be noted that while the total number of bank notes in circulation rose by 40% between 2011 and 2016, the increase in number of notes of Rs 500/- denomination was 76% andfor Rs 1,000/- denomination was 109% during this period. New Series bank notes of Rs 500/- and Rs 2,000/- denominations will be introduced for circulation from November 10, 2016.Infusion of Rs 2,000/- bank notes will be monitored and regulated by RBI. Introduction of new series of banknotes which will be distinctly different from the current ones in terms of look, design, size and colour has been planned.
Note ban to hit resale property market, small builders: Unorganised builders and secondary (resale) property market would be adversely impacted following the government's decision to demonetise Rs 1,000 and Rs 500 notes with effect from midnight, according to real estate developers and consultants.
Housing prices could witness downward pressure, helping revive demand in the sluggish housing segment, they added.
"We are moving toward the cashless economy which is a sign of maturing economy. It's a step in the right direction," DLF CEO Rajeev Talwar said.
"The blackmoney was mostly in land purchase. But in last 6-7 years, there has been no major land buying in this sector.Big builders and organised players are already using bank channel and they would gain from this decision. Unorganised players and the secondary market would be impacted," he said.
Asked about impact on real estate sector especially housing, Talwar said: "There could be downward pressure on prices, which will boost demand".
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