A lot of beds in Gujarati households are going to seem uncomfortable tonight as Prime Minister Narendra Modi, in a televised address to the nation on Tuesday, Nov 8 2016, that the legal tender character of the notes of Rs 500 and Rs 1,000 denomination notes stands withdrawn from midnight. The old high denomination (OHD) notes can be exchanged for value at any of the 19 offices of the Reserve Bank of India or at any of the bank branches or at any Head Post Office or Sub-Post Office.

Why is this scheme?

This scheme has been introduced because of the increase in the fake currency notes in higher denomination. This has increased the usage of fake notes in antinational and illegal activities such as these notes have been misused by terrorists and for hoarding black money. India being cash based economy; Fake India Currency Notes continues to be a menace.  Introduction to such schemes may control the raising incidents of fake money.

This huge step is taken like a surgical strike on Black money, to curb circulation of counterfeit notes and also fight the black money which has rapidly snapped the country’s economy.

Notes Legal and Illegal:

The RBI has intimated that it is withdrawing currency notes that are issued prior to 2005, to ensure that the notes in circulation are of similar design. All notes where the year has not been mentioned have to be exchanged. The notes issued prior to 2005 are considered to be illegal. These notes can be identified easily as these notes do not have the year of printing mentioned on them. These notes have to be exchanged in the banks till December 30, 2016. For example: If a Rs 500 note mentions the year 2013 is considered as legal. But the note does not mention the year or if it is printed 2004 is considered as a mere piece of paper.

Further Assistance:

For further queries, you may approach the control room of RBI by email or on Telephone Nos 022 22602201/022 22602944