In a first, the Bhopal branch of SBI, issued its first set of the new Rs. 500 notes to its customers on Monday. “With this the people will have some respite. The work will be faster now. Till now, we were only giving Rs. 100 and Rs. 50 notes. It was also taking up a lot of time. The people were really excited to receive the new 500 rupee note. It is a historic moment for all of us”, an employee of SBI told. PM Narendra Modi, on 08/11/2016, announced that Rs. 500 and Rs. 1000 currency notes would not be legal tender from that day in an effort to curb the black money in India. Ever since the announcement, people have been rushing to banks and ATMs to deposit and exchange their demonetized currency notes. Up until now, all the banks were issuing Rs. 50 or Rs. 100 notes in exchange for Rs. 500 or Rs. 1000 notes. This created a burden for customers. Most of them found it difficult to carry so many Rs. 50 or Rs. 100 notes in their wallets or purses. There was a great risk of theft. But now, that banks are starting to issue the new Rs. 500 notes, customers can carry less cash with them. The amount they need to withdraw (Rs. 2000) can easily fit in their wallets or purses since it takes only four Rs. 500 notes to make up Rs. 2000 as opposed to forty Rs. 50 notes or twenty Rs. 100 notes. It is also easier to convert Rs. 500 notes to change as opposed to Rs. 2000 notes. The new notes issued by the RBI are harder to duplicate than old notes.
However, until such time that the new Rs. 500 notes become available in all bank branches, the RBI said, “The Reserve Bank of India assures members of the public that enough cash in small denominations are also available at the Reserve Bank and banks. The Reserve Bank urges that public need not be anxious; need not come over to banks repeatedly to draw and hoard. Cash is available when they need it”. The RBI’s announcement comes as anger intensified on Sunday with banks struggling to dispense money following the government’s decision to withdraw large denomination notes in an attempt to curb black money. Read more on Black Money
We have to agree with what PM Narendra Modi said on Saturday. This inconvenience caused by the demonetization of Rs. 500 and Rs. 1000 notes is only temporary. The move will serve the greater good of removing black money from the Indian economy. However, the government must ensure that, the black money in the form of gold, silver, shares and property that is stashed in India and abroad are also retrieved and that people who do not deposit their black money in banks, within the given deadline are caught and punished severely. The transactions in banks and ATMs across India will become faster and easier thanks to the release of the new Rs. 500 notes. Read more on Startup News