What happens after 500, 1000 rupee notes scrapped: 10 things you must know

The 500 and 1,000 rupee notes will now be a thing of the past as Government has scrapped these notes to crackdown on exchange of black money.

In a major initiative by the Government to crack down on black money, the Government has scrapped notes of 500 and 1000 rupee denominations. The move is one of the biggest blows to those who earn and stash unaccounted income.

10 Things You Should Know

1.Black money held in cash in the form of 500, 1000 rupee notes will be rendered worthless after December 30, 2016.

2.Black money hoarders will be forced to find new and innovative ways to stash ill-gotten wealth.

3.The demand for gold and other investment options such as diamonds and silver will shoot through the roof until the deadline, and beyond it.

4.Prices of property, which is already hitting the trough, is likely to drop further as nearly half of all property transactions are believed to be black money and benami transactions.

5.The move is a big blow to election funding and is sure to impact the Punjab and UP elections scheduled next year.

6.Nearly 16 billion Rs 500 notes and 6 billion Rs 1000 notes are in circulation currently.

7.The discontinuing of 500 and 1000 rupee notes, which constitute 84 per cent of all currency notes in circulation, has led to banks and ATMs across India shutting down for 2 days to put this into effect.

8.RBI will have to bear a cost in excess of Rs 10,000 crore to print fresh Rs 500 and Rs 2,000 notes to replace the existing Rs 500 and Rs 1000 notes.

9.Estimates of domestic black money range from a quarter of our GDP to 2-3 times the size of our GDP.


10.Govt has kept proposals floated for higher denomination currency such as Rs 5,000 and Rs 10,000 notes in abeyance fearing highter black money stash.

Source:indiatoday