The exemptions that were provided by the government for the use of old Rs 500 currency notes will end on December 15 mid-night, the Finance Ministry informed. The banknotes ceased to be legal tender after November 8 announcement made by PM Narendra Modi, but they were allowed to be used to pay at medicine shops and for public utility services to ensure the public faces the least inconvenience. All these exemptions will stand withdrawn as of mid-night and those who still have the currency notes in this denomination, are now left with only one option and that is, to deposit it in banks in their respective accounts. No other business place or any other entity will be allowed to accept these notes.
Prime Minister Narendra Modi had announced the imposition of a ban on Rs 500 and Rs 1,000 currency notes to combat black money, fake currency, corruption and even terrorism sponsored from across the border and along with this the big goal for the Indian economy was to shift the Indian economy to the cashless mode – to encourage citizens to shun cash and adopt digital payments. The ban was followed by introduction of new Rs 500 currency notes and a new denomination of Rs 2,000 was created by the Reserve Bank of India (RBI).
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While the announcement has been accepted by the public, the availability of cash in the banking system dropped precariously – there were simply not enough currency notes left in circulation for the public to effect purchases or make other payments. The long lines snaking across streets in front of banks and ATMs are still seen despite a month having passed since the note ban announcement was made. However, PM Modi did ask the public to bear with the inconvenience for 50 days and he has promised that things will return to normal thereafter. Taking advantage of the situation, Opposition parties have taken the government to task and they have not allowed the Parliament to transact any other business. They are clamouring for PM Modi to speak and then also answer their questions about the need and urgency to go for the note ban. While PM Modi has appeared in Parliament, he was there today too, yet he has refused to speak on the subject there, preferring to address the ‘Jan Sabha’ during his many rallies across India.
