Rs 500 and Rs 1000
notes stand demonetized from midnight: PM Narendra Modi
A big Impact on Real
Estate
In a recent incidence PM Narendra Modi announced that higher
currency notes of Rs500 and Rs 1000 respectively would be demonetized .he said
since his government has come in power it has been trying to fight black money
in India. He mentioned corruption, black money and terrorism has been weakening
the country since a long time.
On the other hand RBI came up with answers as to why was the
decision made? (Source TOI)
The decision to demonetize the higher currency notes of Rs
500 and Rs 1000 which cannot be used for transacting business and or store of
value for future usage.RBI said there has been increase in fake notes which
were used for anti national and illegal activities. In order to contain the rising incidence of
fake notes and black money, the scheme to withdraw has been introduced.
Impact
on Real Estate
Till date
most of the transactions done were approximately 35%-65%, which means 35% was
black and rest is done in white to avoid income tax. But after the announcement
by PM Narendra Modi this will change the face of real estate, and the secondary
market will come down in future. As an impact there will be no black money transactions
for possibly next 6 months for sure. As the
RBI would be monitoring every transaction as one has to use mode of payment
through cheque or electronic transfer and has to use Pan Card or certain valid
identity proof while making a transaction. Cash transaction will reduce and
this would lead to a brighter India and people will have to give proof for
their income hence forth.
The scheme
The legal tender character of the notes in denominations of Rs 500 and Rs1000 stands withdrawn+ . The 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.
The legal tender character of the notes in denominations of Rs 500 and Rs1000 stands withdrawn+ . The 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.
One can
get up to Rs 4000
per person in cash irrespective of the size of tender and anything over and
above that will be receivable by way of credit to bank account.
Duration to exchange the currency
The scheme closes on 30th
December 2016. The OHD banknotes can be exchanged at branches of commercial
banks, Regional Rural Banks, Urban Cooperative banks, State Cooperative Banks
and RBI till 30th December 2016.
For those who are unable to exchange their Old High Denomination Banknotes on or before December 30, 2016, an opportunity will be given to them to do so at specified offices of the RBI, along with necessary documentation as may be specified by the Reserve Bank of India.
For those who are unable to exchange their Old High Denomination Banknotes on or before December 30, 2016, an opportunity will be given to them to do so at specified offices of the RBI, along with necessary documentation as may be specified by the Reserve Bank of India.
Proof of
identity?
Valid Identity proof is any of the following: Aadhaar Card, Driving License, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, and Public Sector Unit to its Staff.
Valid Identity proof is any of the following: Aadhaar Card, Driving License, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, and Public Sector Unit to its Staff.
Source: Times Of India
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