The New Currency notes of Rs 500 and Rs 1,000 won’t be valid from midnight, PM Narendra Modi says in an address to the nation.“Currency notes of Rs 1000 and Rs 500 will be just paper with no value,” the PM says.Modi says the citizens’ money will be safe as they can deposit the notes in the bank before December 30, 2016.“People can deposit notes of Rs 1,000 and Rs 500 in their banks from November 10 till December 30, 2016,” says PM Narendra Modi.All other coins and notes to be continued.
|500 And 2,000 Rupee Notes|
Prime Minister Narendra Modi today announced that Rs 500 and Rs 1000 banknotes would be withdrawn from the financial system at midnight, saying it was part of a crackdown on rampant corruption. The surprise step appears to be designed to bring billions of dollars worth of cash in unaccounted wealth into the mainstream economy.
“Black money and corruption are the biggest obstacles in eradicating poverty,” he said in an address to the nation.New 500 and 2,000 rupee denomination notes will be issued later, he added.
Why is RBI issuing Rs 2000 Notes :
- The Rs 2000 currency is designed keeping in mind to eradicate the black money issues using state of the art indigenous nano-technology.
- Every Rs 2000 currency note is embedded with a RFID tag.
How The Embedded RFID Tag Works?
- The unique feature of the RFID is it doesn’t need any power source.
- It only acts as a signal reflector.
- When a satellite sends a signal requesting location, the RFID reflects back the signal from the location, giving precise location coordinates, and the serial number of the currency back to the satellite, this way every RFID tag currency can be easily tracked and located even if it is kept 120 meters below ground level.
- The RFID tag can’t be tampered with or removed without damaging the currency note.
How Will This Help Eradicate Black Money Menace?
- Since every RFID-tagged currency can be tracked, the satellite can identify the exact amount of money stored at a certain location.
- If a relatively high concentration of currency is found a certain location for a longer period of time at suspicious locations other than banks and other financial institutions.
- The information will be passed on to the Income Tax Department for further investigation.
Watch PM Narendra Modi’s Currency Revamp Full Speech
Source:India today Stay tuned for more News updates : IndianTalks