About 86 per cent of the Indian currency that was currently in circulation became useless on the midnight of 8th November 2016, when the Prime Minister Narendra Modi, announced that the notes of Rs. 500 and Rs. 1000 were mere papers and will not come to use after the day. This move is said to be the government’s attack on black or unaccounted money. This step can be beneficial for the near future, here’s a list on how it will impact the black money holders.
1. This sudden announcement will directly affect black holders as they will be left with two options, either deposit money after identifying themselves to the banks or exchange the money by 24th November. A maximum of 60,000 rupees can be exchanged by a person as per day limit is set to be rupees 4,000.
2. No 'unaccounted for' money can be declared now. It ceases to be money, instead it will be a 'worthless piece of paper', as PM Modi termed in his Speech, as the date for the declaring or disclosing the unaccounted money was set to be 30th September 2016.
3. The Finance ministry said that the Rs. 500 notes increase 76 per cent, and Rs. 1000 notes increased for about 109 per cent. Instances of cash-for-vote prevalent in Indian elections - in the form of bundles of cash in deligitimised denominations, may or may not work from now on.
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