500 and 1000 rupee notes demonetized: What’s there to know and do ?
All media went berserk when our Prime Minister Narendra Modi suddenly announced last night that all existing 500 and 1000 rupee notes will be rendered useless starting from today. It was a brave step taken by our Indian government to curb the menacing black money reserves in India. It will affect all the bunch of people who stashed their illegally earned cash as bank notes in their basement badly. But does the common man need to worry about it? And how will it affect our normal life, business, and more importantly for us, web development companies? Let’s find out.
What has happened?
First off, the move is to cancel the value of all existing 500 and 1000 rupee notes currently in circulation. In order to replace the notes and to re-establish the financial balance, new 500 and 2000 rupees notes will be released into the market. Yes, there will be no more of the 1000 rupee note again. So if collecting currency is your thing, keep one or two aside. It’ll come in handy later. The new notes will be released to the general public via banks and post offices. You will have to exchange it with the old 500 or 1000 rupee notes you have. The procedure is simple.
So why do we see all these worrying news?
As Indian social media is the prime arena for the cultivation of fake news and odd speculations, people are worried. There had been news floating around on the net regarding this move taken by our government. Some of them were nice to hear, some were bad.
In reality, the only people who are going to take a hit are the bunch of people who kept their illegally earned money as banknotes hidden from the Indian government. So as long as you only have some decently earned money with all the taxes paid for, there is nothing to worry about. There is definitely a small degree of inconvenience involved in this, as you have to visit a bank to get the new 500 and 1000 rupee notes. But we believe that this small inconvenience is worth suffering, as it’s helpful to India in the long run.
So what exactly should we do?
The new Indian 500 and 2000 rupee notes will be available in the banks and post offices from November 10th. Banks and ATMs will remain closed on November 9th to prepare for the rush to come. Remember, in most parts ATMs won’t work on November 10th as well.
In order to exchange your notes, you will require an original id. There will be a maximum limit of 4000 rupees per person. CCTV cameras will be fitted at every bank and post office there is, to tape the identities of the people bringing in the money. We can also deposit our money in our bank accounts which also might require an id. So keep an id when you pay a visit to the bank or the post office.
The exchange spree will start on November 10th and will go on until December 31st. If you couldn’t make it in time, worry not, you still have time until March 31st, 2017 to exchange your old 500 and 1000 rupee notes from a nearby RBI office.
There will be restrictions on ATM withdrawals initially to ensure equal availability of money to all. Right after the ATMs reopen on 11th November, we can start to withdraw new 500 and 2000 rupee notes from it. But, in the first few days, all the withdrawals will be restricted to a maximum amount of 2000 rupees per card per day. This will be increased to 4000 rupees later. So if a grand shopping is a plan for the next few weeks, prepare to pay with credit/debit cards.
Our Prime Minister has promised everybody that none of us will lose any money that we have. So let’s keep the worries aside and focus more on the positive side of things.
What about the inconvenience?
Yes, there are a bunch of people who might get into a tight spot due to the unexpected nature of this demonetization movement. For example, long distance travelers who are in the middle of a journey will find it hard to pay for their fares in these few days. The bunch of people who will have to pay for some emergency services will also find themselves in a tight spot as well.
Will the old 500 and 1000 rupee notes be accepted anywhere?
Yes, the Indian government has foreseen these difficulties and has taken some measures to counter it. Until November 2011, the old 500 and 1000 rupee notes will be accepted at railway station ticket counters, airport and petrol stations to help the stranded travelers. Old 500 and 1000 rupee notes will also be accepted at crematories, burial grounds, and milk booths. as well.
All means of non-cash payments are unrestricted during this period. Cheques, demand drafts, credit/debit cards or electronic fund transfer can be adopted for payments during these days to stay away from the hassle. Every Indian note other than the 500 and 1000 notes remains valid through these days. All coins are valid as well.
These will be the new notes that we are going to use from now on.
How will this affect web development?
We look at positive side of things and we believe that here too, it’s no sad story. As websites grow popular day by day, more and more payments are made using the internet. The usage of bank notes has decreased recently. The convenience of electronic money has won people over. In order to keep away the hassle during times like these, we urge everyone to stick to the safer and more convenient payment methods. It’s not practical to get rid of bank notes altogether but we can minimize their usage. We live in a tech-savvy’s favorite era where almost everything happens over the internet.
Internet shopping or e-commerce has gained huge popularity in the recent years. A huge increase in the number of people shopping online has been recorded in the last few years. This has created a large fan-base for the electronic mode of payments. Moving on to e-commerce is also beneficial to small businesses as it expands their reach. They can reach more customers and therefore achieve better business. If you require any assistance regarding e-commerce or if you want to setup an e-commerce website, you can contact us. We here, at Dotz Web Technologies LLP will be more than happy to help you.
March 17, 2017