In the wake of a revision in the Know Your Client (KYC) norms and eligibility conditions for Foreign Portfolio Investors (FPIs), Department of Economic Affairs (DEA) Secretary Subhash Chandra Garg said an increase in FPIs would take place, which would have a positive impact on capital inflow and the current situation of the Indian Rupee.

"In April, the Securities and Exchange Board of India (SEBI) had come out with a circular for Persons of Indian Origin (PIOs) and Non-resident Indians (NRIs) who dealt with investments via asset management companies. However, there were some issues with the norms mentioned in this circular. Soon after, the SEBI constituted a committee and looked into the grievances of these people and released a new circular. I feel that now, investors will enthusiastically enter the market once again. Also, an increase in FPIs positively impacts capital inflow and the Rupee," Garg told ANI.

The market regulator on Friday announced a revision in the KYC norms for FPIs, taking cognisance of the recommendations of the SEBI Working Group headed by HR&nbsp;Khan.

As per the new norms, NRIs and Overseas Citizens of India (OCIs) shall have the same meaning as assigned to them under regulation 2 of the Foreign Exchange Management (Transfer or issue of security by a Person Resident outside India) Regulations, 2017, the SEBI noted.

NRIs, OCIs and Resident Indians (RIs), the SEBI noted, can be constituents of FPIs, if the contribution made by them, including those of NRI/ OCI/ RI controlled investment managers (IMs), is below 25 per cent from a single NRI/ OCI/ RI and in aggregate, below 50 per cent to corpus of FPI. The SEBI also stated that NRIs/ OCIs/ RIs should not be in control of FPIs.

As per the latest norms, FPIs can be controlled by IMs which are controlled and/or owned by NRIs/ OCIs/ RIs if IMs are appropriately regulated in their home jurisdiction and are registered with the SEBI as non-investing FPIs; or an IM is incorporated or set up under Indian laws and appropriately registered with the SEBI.

Furthermore, a non-investing FPI may be directly or indirectly fully owned and/or controlled by an NRI/ OCI/ RI. The restriction that NRIs/OCIs/RIs should not be in control of

FPIs, the SEBI said, will not apply to FPIs which are 'offshore funds' for which a no-objection certificate has been provided by the Board in terms of SEBI (Mutual Funds) Regulations, 1996.

Existing FPIs and new applicants shall be given a time period of two years from the date of coming into force of the amended regulations or from the date of registration, whichever is later, in order to satisfy these eligibility conditions. In case of temporary breach, a time period of 90 days will be given to ensure compliance with the prescribed conditions, the SEBI said.

In the wake of a revision in the Know Your Client (KYC) norms and eligibility conditions for Foreign Portfolio Investors (FPIs), Department of Economic Affairs (DEA) Secretary Subhash Chandra Garg said an increase in FPIs would take place, which would have a positive impact on capital inflow and the current situation of the Indian Rupee.

In the wake of a revision in the Know Your Client (KYC) norms and eligibility conditions for Foreign Portfolio Investors (FPIs), Department of Economic Affairs (DEA) Secretary Subhash Chandra Garg said an increase in FPIs would take place, which would have a positive impact on capital inflow and the current situation of the Indian Rupee. "In April, the Securities and Exchange Board of India (SEBI) had come out with a circular for Persons of Indian Origin (PIOs) and Non-resident Indians (NRIs) who dealt with investments via asset management companies. However, there were some issues with the norms mentioned in this circular. Soon after, the SEBI constituted a committee and looked into the grievances of these people and released a new circular. I feel that now, investors will enthusiastically enter the market once again. Also, an increase in FPIs positively impacts capital inflow and the Rupee," Garg told ANI. The market regulator on Friday announced a revision in the KYC norms for FPIs, taking cognisance of the recommendations of the SEBI Working Group headed by HR Khan. As per the new norms, NRIs and Overseas Citizens of India (OCIs) shall have the same meaning as assigned to them under regulation 2 of the Foreign Exchange Management (Transfer or issue of security by a Person Resident outside India) Regulations, 2017, the SEBI noted. NRIs, OCIs and Resident Indians (RIs), the SEBI noted, can be constituents of FPIs, if the contribution made by them, including those of NRI/ OCI/ RI controlled investment managers (IMs), is below 25 per cent from a single NRI/ OCI/ RI and in aggregate, below 50 per cent to corpus of FPI. The SEBI also stated that NRIs/ OCIs/ RIs should not be in control of FPIs. As per the latest norms, FPIs can be controlled by IMs which are controlled and/or owned by NRIs/ OCIs/ RIs if IMs are appropriately regulated in their home jurisdiction and are registered with the SEBI as non-investing FPIs; or an IM is incorporated or set up under Indian laws and appropriately registered with the SEBI. Furthermore, a non-investing FPI may be directly or indirectly fully owned and/or controlled by an NRI/ OCI/ RI. The restriction that NRIs/OCIs/RIs should not be in control of FPIs, the SEBI said, will not apply to FPIs which are 'offshore funds' for which a no-objection certificate has been provided by the Board in terms of SEBI (Mutual Funds) Regulations, 1996. Existing FPIs and new applicants shall be given a time period of two years from the date of coming into force of the amended regulations or from the date of registration, whichever is later, in order to satisfy these eligibility conditions. In case of temporary breach, a time period of 90 days will be given to ensure compliance with the prescribed conditions, the SEBI said.

Surge in Foreign Portfolio Investments will impact rupee positively: Economic Affairs Secretary

The rupee strengthened by 6 paise to 64.67 against the dollar at the forex market today on fresh selling of the American currency by exporters and banks amid strength in domestic equities.

Dealers said dollar&#39;s weakness against other currencies overseas and early gains in domestic equity markets supported the rupee.

On Friday, the rupee had gained 31 paise to end at 64.73 against the US dollar.

The dollar eased after climbing Friday on the back of the comments from the US Fed cementing expectations of more aggressive US rate hikes this year.

The euro&#39;s gains, however, are being tamed by uncertainty ahead of elections in Italy, one of the eurozone&#39;s biggest economies. 
Meanwhile, the benchmark BSE Sensex rose by 133.78 points, or 0.39 per cent, to 34,275.93 in opening trade today.

According to the provisional exchange data, foreign investors sold shares worth Rs 486.32 crore on the net basis on Friday.&nbsp;

Dealers said dollar's weakness against other currencies overseas and early gains in domestic equity markets supported the rupee\

The rupee strengthened by 6 paise to 64.67 against the dollar at the forex market today on fresh selling of the American currency by exporters and banks amid strength in domestic equities. Dealers said dollar's weakness against other currencies overseas and early gains in domestic equity markets supported the rupee. On Friday, the rupee had gained 31 paise to end at 64.73 against the US dollar. The dollar eased after climbing Friday on the back of the comments from the US Fed cementing expectations of more aggressive US rate hikes this year. The euro's gains, however, are being tamed by uncertainty ahead of elections in Italy, one of the eurozone's biggest economies. Meanwhile, the benchmark BSE Sensex rose by 133.78 points, or 0.39 per cent, to 34,275.93 in opening trade today. According to the provisional exchange data, foreign investors sold shares worth Rs 486.32 crore on the net basis on Friday.

Rupee gains 6 paise against dollar in opening trade

The rupee edged higher by five paise to trade at 63.82 against the US dollar on the first trading day of 2018 on the back of increased selling of the American currency by banks and exporters.

At the Interbank Foreign Exchange, the rupee was trading higher by 5 paise against the previous close of 63.82. It opened higher by two paise at 63.85 and touched a high of 63.81 in early trade.

Dealers said increased selling of the dollar by exporters supported the rupee.

The rupee had appreciated 21 paise to end at a fresh four-month high of 63.87 against the greenback on Friday.

Meanwhile, stock markets <a href="http://www.wionews.com/business-economy/sensex-begins-2018-on-negative-note-down-18-points-28215">opened flat on Monday</a> with the benchmark BSE Sensex opening marginally higher at 34,059.99.

Dealers said increased selling of the dollar by exporters supported the rupee.

The rupee edged higher by five paise to trade at 63.82 against the US dollar on the first trading day of 2018 on the back of increased selling of the American currency by banks and exporters. At the Interbank Foreign Exchange, the rupee was trading higher by 5 paise against the previous close of 63.82. It opened higher by two paise at 63.85 and touched a high of 63.81 in early trade. Dealers said increased selling of the dollar by exporters supported the rupee. The rupee had appreciated 21 paise to end at a fresh four-month high of 63.87 against the greenback on Friday. Meanwhile, stock markets opened flat on Monday with the benchmark BSE Sensex opening marginally higher at 34,059.99.

Rupee starts 2018 on a better note, up 5 paise against dollar

The Indian rupee pared nearly all of its sharp losses early on Monday, as it became clear that Prime Minister Narendra Modi&#39;s Bharatiya Janata Party (BJP) would comfortably win an election in his home state of Gujarat.&nbsp;Other emerging Asian currencies slipped as the dollar edged up.&nbsp;

At around 0350 GMT, the rupee was down as much as 1.1 per cent, its biggest intraday loss since May 18, as initial counting showed a close fight between the ruling BJP and the main opposition Congress.&nbsp;Later, three news television channels said the BJP won more than 100 of 182 assembly seats.

At 0546 GMT, the rupee was down just 0.1 per cent.&nbsp;&quot;This election in Gujarat is like a barometer gauge said Christopher Wong, an FX strategist with Malayan Banking.&nbsp;&quot;Fears of an upset election dissipated as Modi was set for a win&quot;.&nbsp;National elections are due by 2019.

Most other emerging Asian currencies slipped as the dollar edged higher after top Republicans said they expected the US Congress to pass a tax code overhaul this week, with votes on the legislation expected by Tuesday and President Donald Trump aiming to sign the bill by the end of the week.&nbsp;

Many investors expect the cuts could bolster US growth, prompting faster rate rises by the US Federal Reserve and leading to a stronger dollar.&nbsp;Passage of US tax reform program would put &quot;pressure on the regional currencies&quot;, said Manny Cruz, an analyst with Asiasec Equities Inc in Manila.&nbsp;

The Malaysian ringgit and Thai baht lost about 0.2 per cent each.&nbsp;The Taiwan dollar and Singapore dollar slipped about 0.1 percent each.&nbsp;The Korean won and the Philippine peso, however, edged up.&nbsp;

China&#39;s Yuan

The yuan eased slightly against the US dollar on Monday, dragged lower by a weaker official midpoint and stability in the greenback on optimism over the progress of US tax reform.&nbsp;Prior to market opening on Monday, the People&#39;s Bank of China set the midpoint rate at 6.6162 per dollar, 49 pips or 0.07 per cent weaker than the previous fix of 6.6113 on Friday.&nbsp;

In the spot market, the onshore yuan opened at 6.6126 per dollar and was changing hands at 6.6115 at midday, 0.07 per cent stronger than the midpoint.&nbsp;

Most other emerging Asian currencies apart from Indian rupee have slipped as the dollar edged higher after top Republicans said they expected the US Congress to pass a tax code overhaul this week

The Indian rupee pared nearly all of its sharp losses early on Monday, as it became clear that Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) would comfortably win an election in his home state of Gujarat. Other emerging Asian currencies slipped as the dollar edged up. At around 0350 GMT, the rupee was down as much as 1.1 per cent, its biggest intraday loss since May 18, as initial counting showed a close fight between the ruling BJP and the main opposition Congress. Later, three news television channels said the BJP won more than 100 of 182 assembly seats. At 0546 GMT, the rupee was down just 0.1 per cent. "This election in Gujarat is like a barometer gauge said Christopher Wong, an FX strategist with Malayan Banking. "Fears of an upset election dissipated as Modi was set for a win". National elections are due by 2019. Most other emerging Asian currencies slipped as the dollar edged higher after top Republicans said they expected the US Congress to pass a tax code overhaul this week, with votes on the legislation expected by Tuesday and President Donald Trump aiming to sign the bill by the end of the week. Many investors expect the cuts could bolster US growth, prompting faster rate rises by the US Federal Reserve and leading to a stronger dollar. Passage of US tax reform program would put "pressure on the regional currencies", said Manny Cruz, an analyst with Asiasec Equities Inc in Manila. The Malaysian ringgit and Thai baht lost about 0.2 per cent each. The Taiwan dollar and Singapore dollar slipped about 0.1 percent each. The Korean won and the Philippine peso, however, edged up. China's Yuan The yuan eased slightly against the US dollar on Monday, dragged lower by a weaker official midpoint and stability in the greenback on optimism over the progress of US tax reform. Prior to market opening on Monday, the People's Bank of China set the midpoint rate at 6.6162 per dollar, 49 pips or 0.07 per cent weaker than the previous fix of 6.6113 on Friday. In the spot market, the onshore yuan opened at 6.6126 per dollar and was changing hands at 6.6115 at midday, 0.07 per cent stronger than the midpoint.

Rupee pares losses on Gujarat vote result; other Asian currencies slip

Most Asian currencies drifted on Thursday, with investors shying away from risk ahead of key central bank meetings next week and due to political uncertainty in the Middle East.&nbsp;Market players expect the mood to be cautious in the run-up to next Thursday when both the U.S. Federal Reserve and the European Central Bank are expected to hold policy meetings.&nbsp;

A Reuters poll showed a rate rise was almost certain at the Fed&#39;s Dec. 14 meeting, with three or more rate hikes expected next year. Expectations for a more vigorous rate cycle in 2018 got wind from progress in President Donald Trump`s tax cut plans.&nbsp;On the other hand, the ECB is expected to stand pat on policy at its meeting next week in Frankfurt.

Elsewhere, Trump on Wednesday reversed decades of U.S. policy and recognised Jerusalem as the capital of Israel, imperilling Middle East peace efforts and upsetting the Arab world and Western allies alike.&nbsp;The dollar on Thursday shook off losses against the yen, buoyed by optimism on U.S. tax reform and ahead of payrolls data on Friday.&nbsp;Meanwhile, a potential U.S. government shutdown looms if Congress fails to agree on a spending package.

&quot;The debt ceiling limit is another source of worry as emergency measures are only likely to last for 2/3 months before the Treasury runs out of funds,&quot; DBS Group strategists Eugene Leow and Philip Wee said in a note.&nbsp;&quot;Politics is likely to dominate macro cues at a time when valuations for risky assets appear lofty. Brace for volatility ahead.&quot;&nbsp;All local currencies in Asia were subdued, with the Malaysian ringgit the weakest among its peers against the dollar, easing 0.2 percent.

&quot;There&#39;s still quite a lot of equity outflow happening,&quot; said Andy Ji, a strategist for Commonwealth Bank of Australia in Singapore.&nbsp;&quot;The ringgit is still outperforming though&quot;. The Malaysian currency has been on an uptrend since early November, helped by a strong economy and rate rise expectations.

The South Korean won, the region`s biggest decliner in the previous session, was 0.16 percent firmer against the dollar, despite a 0.8-percent fall in the Kospi index.&nbsp;Ji said the won could be trading on the notion of &quot;a very hawkish central bank at this point in time despite a dovish rate rise&quot;.

Last month, the Bank of Korea raised its benchmark rate by 25 basis points to 1.5 percent from a record low level.

Indian Rupee

The rupee firmed marginally on Thursday after the Reserve Bank of India (RBI) kept rates unchanged in its policy meeting the day before, as expected, and left its policy stance &quot;neutral&quot;.&nbsp;The central bank was also seen as slightly softening its language on inflation by saying risks were &quot;evenly balanced&quot;.&nbsp;

The RBI raised its headline inflation projection in the range of 4.3 to 4.7 percent for the second half of 2018, compared with 4.2 to 4.6 percent earlier.&nbsp;&quot;Further upside to inflation and growth will nudge the RBI to turn hawkish, the likelihood of which is steadily rising,&quot; said DBS Group economist Radhika Rao.&nbsp;

With investors shying away from the risks due to anticipated central bank meetings next week, most of the Asian currencies drifted on Thursday.

Most Asian currencies drifted on Thursday, with investors shying away from risk ahead of key central bank meetings next week and due to political uncertainty in the Middle East. Market players expect the mood to be cautious in the run-up to next Thursday when both the U.S. Federal Reserve and the European Central Bank are expected to hold policy meetings. A Reuters poll showed a rate rise was almost certain at the Fed's Dec. 14 meeting, with three or more rate hikes expected next year. Expectations for a more vigorous rate cycle in 2018 got wind from progress in President Donald Trump`s tax cut plans. On the other hand, the ECB is expected to stand pat on policy at its meeting next week in Frankfurt. Elsewhere, Trump on Wednesday reversed decades of U.S. policy and recognised Jerusalem as the capital of Israel, imperilling Middle East peace efforts and upsetting the Arab world and Western allies alike. The dollar on Thursday shook off losses against the yen, buoyed by optimism on U.S. tax reform and ahead of payrolls data on Friday. Meanwhile, a potential U.S. government shutdown looms if Congress fails to agree on a spending package. "The debt ceiling limit is another source of worry as emergency measures are only likely to last for 2/3 months before the Treasury runs out of funds," DBS Group strategists Eugene Leow and Philip Wee said in a note. "Politics is likely to dominate macro cues at a time when valuations for risky assets appear lofty. Brace for volatility ahead." All local currencies in Asia were subdued, with the Malaysian ringgit the weakest among its peers against the dollar, easing 0.2 percent. "There's still quite a lot of equity outflow happening," said Andy Ji, a strategist for Commonwealth Bank of Australia in Singapore. "The ringgit is still outperforming though". The Malaysian currency has been on an uptrend since early November, helped by a strong economy and rate rise expectations. The South Korean won, the region`s biggest decliner in the previous session, was 0.16 percent firmer against the dollar, despite a 0.8-percent fall in the Kospi index. Ji said the won could be trading on the notion of "a very hawkish central bank at this point in time despite a dovish rate rise". Last month, the Bank of Korea raised its benchmark rate by 25 basis points to 1.5 percent from a record low level. Indian Rupee The rupee firmed marginally on Thursday after the Reserve Bank of India (RBI) kept rates unchanged in its policy meeting the day before, as expected, and left its policy stance "neutral". The central bank was also seen as slightly softening its language on inflation by saying risks were "evenly balanced". The RBI raised its headline inflation projection in the range of 4.3 to 4.7 percent for the second half of 2018, compared with 4.2 to 4.6 percent earlier. "Further upside to inflation and growth will nudge the RBI to turn hawkish, the likelihood of which is steadily rising," said DBS Group economist Radhika Rao.

Asian currencies drift as investors shy away from risk

The Supreme Court of India today asked the government to elaborate on the measures taken to ease the sufferings and inconvenience of people in rural areas.&nbsp;

Senior advocate P Chidambaram, appearing for co-operative banks, questioned the government&#39;s decision saying that the rural economy is almost paralysed due to non-inclusion of co-operative banks.&nbsp;

While hearings various pleas challenging the government&#39;s demonetisation move, the bench said all the parties should sit together and prepare a list of categories of cases which could be referred to high courts and those that could be taken up by the apex court.&nbsp;

Appearing for the government, attorney general Mukul Rohatgi said the government is aware of the situation in the co-operative banks which lack proper infrastructure and mechanism as compared to scheduled banks.&nbsp;

He defended the decision, saying the government has deliberately kept co-operative banks out of the drive as these did not have the expertise to detect fake currency.

Rohatgi said, &quot;Several cases are filed each passing day in various high courts on various aspects post demonetisation and it is not possible to deal with cases simultaneously in Kerala, Kolkata, Jaipur and Mumbai... All these matter should be clubbed together and be referred to any one high court or the apex court should hear them.&quot;

The court has posted the next hearing on the matter to December 5.&nbsp;

(WION with inputs from PTI)&nbsp;

It asked the government to spell out steps to ease inconvenience in rural areas where co-operative banks lack required mechanism

The Supreme Court of India today asked the government to elaborate on the measures taken to ease the sufferings and inconvenience of people in rural areas. Senior advocate P Chidambaram, appearing for co-operative banks, questioned the government's decision saying that the rural economy is almost paralysed due to non-inclusion of co-operative banks. While hearings various pleas challenging the government's demonetisation move, the bench said all the parties should sit together and prepare a list of categories of cases which could be referred to high courts and those that could be taken up by the apex court. Appearing for the government, attorney general Mukul Rohatgi said the government is aware of the situation in the co-operative banks which lack proper infrastructure and mechanism as compared to scheduled banks. He defended the decision, saying the government has deliberately kept co-operative banks out of the drive as these did not have the expertise to detect fake currency. Rohatgi said, "Several cases are filed each passing day in various high courts on various aspects post demonetisation and it is not possible to deal with cases simultaneously in Kerala, Kolkata, Jaipur and Mumbai... All these matter should be clubbed together and be referred to any one high court or the apex court should hear them." The court has posted the next hearing on the matter to December 5. (WION with inputs from PTI)

Demonetisation: Supreme Court asks Indian government to list measures easing rural suffering

Young working professionals to pensioners, a large number of people queued up at banks across the country on the first pay day after the government announced its demonetisation move.&nbsp;

Even three weeks after the decision, people continued to face a cash crunch with many ATMs displaying &#39;No Cash&#39; notice.&nbsp;

Top government officials say special efforts are being made to pump in additional cash into banks to meet the heavy demand for currency notes on account of salary withdrawal.

The Reserve Bank has been asked to ensure adequate supply of new Rs 500 notes at banks.&nbsp;

The country&#39;s currency printing presses have been working overtime but there is still a lag of 21 days for notes to reach the market.&nbsp;

Queues at the banks were relatively longer as many people wished to withdraw the maximum amount for their family expenses over the next few days.

&quot;Our bank accounts are refilled but our pockets are mostly empty. Let&#39;s see if we have some luck,&quot; a young IT employee said outside an ATM outlet in Salt Lake, Kolkata&#39;s IT hub.

&quot;Withdrawal at ATM is limited. I need bigger amount to run my family expenses. That`s why I am planning to withdraw Rs 24.000 from the bank,&quot; said another man standing in a queue at a nationalised bank since 7.30 am.

In Kerala, finance minister Thomas Issac said the government employees and pensioners will be able to withdraw only Rs 24,000 cash a week.&nbsp;

He said the government staff and pensioners will have to move bank or treasury in person as sufficient notes were not available for disbursement of complete salaries.&nbsp;

&quot;The banks have no cash and it is very clear. And, there is no way that they are going to get sufficient cash to pay the full salary. Therefore, the understanding is that the salary and pension will be limited to 24,000 rupees for one time withdrawal. So, over five lakh people are drawing pension from treasury and from banks. They will have to go to their prospective banks and treasury, especially to withdraw money,&quot; he said.

He added that there were around 10 lakh employees and pensioners in the state and more than half of them drew their salaries through banks 4.5 lakh through treasury accounts and the rest about 50,000 in cash.

(WION with inputs from agencies)&nbsp; 
&nbsp;

Long queues were seen outside banks across the country as many ATMs remain non-functional on the first pay day since demonetisation

Young working professionals to pensioners, a large number of people queued up at banks across the country on the first pay day after the government announced its demonetisation move. Even three weeks after the decision, people continued to face a cash crunch with many ATMs displaying 'No Cash' notice. Top government officials say special efforts are being made to pump in additional cash into banks to meet the heavy demand for currency notes on account of salary withdrawal. The Reserve Bank has been asked to ensure adequate supply of new Rs 500 notes at banks. The country's currency printing presses have been working overtime but there is still a lag of 21 days for notes to reach the market. Queues at the banks were relatively longer as many people wished to withdraw the maximum amount for their family expenses over the next few days. "Our bank accounts are refilled but our pockets are mostly empty. Let's see if we have some luck," a young IT employee said outside an ATM outlet in Salt Lake, Kolkata's IT hub. "Withdrawal at ATM is limited. I need bigger amount to run my family expenses. That`s why I am planning to withdraw Rs 24.000 from the bank," said another man standing in a queue at a nationalised bank since 7.30 am. In Kerala, finance minister Thomas Issac said the government employees and pensioners will be able to withdraw only Rs 24,000 cash a week. He said the government staff and pensioners will have to move bank or treasury in person as sufficient notes were not available for disbursement of complete salaries. "The banks have no cash and it is very clear. And, there is no way that they are going to get sufficient cash to pay the full salary. Therefore, the understanding is that the salary and pension will be limited to 24,000 rupees for one time withdrawal. So, over five lakh people are drawing pension from treasury and from banks. They will have to go to their prospective banks and treasury, especially to withdraw money," he said. He added that there were around 10 lakh employees and pensioners in the state and more than half of them drew their salaries through banks 4.5 lakh through treasury accounts and the rest about 50,000 in cash. (WION with inputs from agencies)

Demonetisation: Banks see big rush on pay day, many ATMs still dry

Rupee 500 and 1,000 currency notes might have ceased to be legal tender, but these notes are still dominating most bars across the Indian eastern state of West Bengal. &nbsp;

While dance bars are prohibited in Bengal&rsquo;s capital, Kolkata, singers get a crooning license and sing songs on request. Often, bar regulars are seen showering notes on these crooners.&nbsp;

Despite the Indian government&#39;s announcement to demonetise Rs 500 and Rs 1,000 notes, bars in areas like Baguihati, Keshtopur, Dum Dum, Chinar Park and Chandi Chowk of Kolkata and outskirts are still using the old notes. &nbsp;

For the people who want to use lower denominations of Rs 10 or Rs 100 are allowed exchange of old Rs 500 and Rs 1,000 notes, on the condition that they cannot take any of those notes back home.&nbsp;

&ldquo;With very few Rs 100 notes available in the market, in the initial days we saw that people would exchange their old notes and get change in return and take a few notes home. But, now we are not allowing that. They have to shower the entire bundle of notes on the crooners. Infact, we keep a close watch on them, whether they take any of those notes home or not,&rdquo; said a bar owner, requesting anonymity.&nbsp;

However, regulars at the bar make the payment either through cards or with new currency notes. &ldquo;We are not accepting any payments in the old tender. But, whatever they shower on the crooners in the old tender is deposited by the crooner themselves in their bank accounts,&rdquo; the bar owner added.&nbsp;

Several bars in Mumbai and Delhi have resorted to distribution of children&rsquo;s notes in exchange of currency notes, but bars in Kolkata are yet to catch up with the trend.&nbsp;

(WION)&nbsp;

Bar regulars in Kolkata are showering crooners with old currency notes, or are made to use all notes exchanged by the bar owners

Rupee 500 and 1,000 currency notes might have ceased to be legal tender, but these notes are still dominating most bars across the Indian eastern state of West Bengal. While dance bars are prohibited in Bengal’s capital, Kolkata, singers get a crooning license and sing songs on request. Often, bar regulars are seen showering notes on these crooners. Despite the Indian government's announcement to demonetise Rs 500 and Rs 1,000 notes, bars in areas like Baguihati, Keshtopur, Dum Dum, Chinar Park and Chandi Chowk of Kolkata and outskirts are still using the old notes. For the people who want to use lower denominations of Rs 10 or Rs 100 are allowed exchange of old Rs 500 and Rs 1,000 notes, on the condition that they cannot take any of those notes back home. “With very few Rs 100 notes available in the market, in the initial days we saw that people would exchange their old notes and get change in return and take a few notes home. But, now we are not allowing that. They have to shower the entire bundle of notes on the crooners. Infact, we keep a close watch on them, whether they take any of those notes home or not,” said a bar owner, requesting anonymity. However, regulars at the bar make the payment either through cards or with new currency notes. “We are not accepting any payments in the old tender. But, whatever they shower on the crooners in the old tender is deposited by the crooner themselves in their bank accounts,” the bar owner added. Several bars in Mumbai and Delhi have resorted to distribution of children’s notes in exchange of currency notes, but bars in Kolkata are yet to catch up with the trend. (WION)

Demonetisation: Old currency notes still dominating bars in eastern India

The Supreme Court said Friday that it would hear on December 2 a batch of petitions challenging the demonetisation of 500-rupee and 1,000-rupee notes.&nbsp;

The court said it will examine both the constitutional validity of the move, and the inconvenience caused to the people.&nbsp;

&quot;We will examine both aspects (inconvenience and constitutional validity) of the matter. Come on Friday at 2 pm,&quot; said a bench comprising&nbsp;Chief Justice T S Thakur and Justice D Y Chandrachud.&nbsp;

Prime Minister Narendra Modi had on November 8 announced that 500-rupee and 1,000-rupee notes would cease to be legal tender. He said the move was aimed at doing away with black money -- it was one of his poll promises -- and money used to fund terror. But it also took 86% of the currency in circulation then&nbsp;out of the economy.&nbsp;

As much as 90% of all transactions in India are conducted with cash, and people have been severely inconvenienced by the sudden demonetisation.&nbsp;

A number of petitions have been filed in courts around the country asking that the decision be rolled back, and the government recently moved the Supreme Court asking that all the petitions be transferred either to it or to a high court.&nbsp;

On Friday, the Supreme Court asked attorney general Mukul Rohatgi, appearing for the government, to file additional affidavits, if any, explaining the &quot;schemes and steps&quot; taken by the government to ease the situation that has arisen following the demonetisation of the two notes.

Senior advocate Kapil Sibal, appearing for one of the petitioners, said the court should start hearing the matter from Tuesday itself.

Rohatgi, however, opposed the contention, saying it would be better to let all the petitioners come to the Supreme Court on December 2, when the court can decide whether it or one of the high courts will hear the petitions. &nbsp;

(WION with inputs from PTI) 
&nbsp;

The court said it will examine both the constitutional validity of the move and the inconvenience caused to the people

The Supreme Court said Friday that it would hear on December 2 a batch of petitions challenging the demonetisation of 500-rupee and 1,000-rupee notes. The court said it will examine both the constitutional validity of the move, and the inconvenience caused to the people. "We will examine both aspects (inconvenience and constitutional validity) of the matter. Come on Friday at 2 pm," said a bench comprising Chief Justice T S Thakur and Justice D Y Chandrachud. Prime Minister Narendra Modi had on November 8 announced that 500-rupee and 1,000-rupee notes would cease to be legal tender. He said the move was aimed at doing away with black money -- it was one of his poll promises -- and money used to fund terror. But it also took 86% of the currency in circulation then out of the economy. As much as 90% of all transactions in India are conducted with cash, and people have been severely inconvenienced by the sudden demonetisation. A number of petitions have been filed in courts around the country asking that the decision be rolled back, and the government recently moved the Supreme Court asking that all the petitions be transferred either to it or to a high court. On Friday, the Supreme Court asked attorney general Mukul Rohatgi, appearing for the government, to file additional affidavits, if any, explaining the "schemes and steps" taken by the government to ease the situation that has arisen following the demonetisation of the two notes. Senior advocate Kapil Sibal, appearing for one of the petitioners, said the court should start hearing the matter from Tuesday itself. Rohatgi, however, opposed the contention, saying it would be better to let all the petitioners come to the Supreme Court on December 2, when the court can decide whether it or one of the high courts will hear the petitions. (WION with inputs from PTI)

Demonetisation: Supreme Court to hear petitions challenging move on December 2

The Bank Employees Federation of India (BEFI) said Thursday that the current shortage of cash in the economy will continue for another four to five months -- even if all four of the country&#39;s mints work at optimum capacity.

&quot;Cash shortage will continue even if the four currency note printing presses run at their optimum capacity. It will take four to five months to restore normalcy in cash supply,&quot; PTI reported BEFI general secretary P K Biswas as saying.

The BEFI also warned that the situation might get worse next week when people find it difficult or are unable to withdraw their salaries from banks and ATMs, and that that will make people more impatient.&nbsp;

PTI reported that Biswas also alleged that at some bank branches, customers had vandalised bank property and halted banking operations due to the shortage of cash post-demonetisation.

On the evening of November 8 this year, Indian Prime Minister Narendra Modi announced that 500- and 1,000-rupee notes cease to be legal tender. He said the move was aimed at doing away with black money -- which was one of his poll promises -- and money used to fund terror. But it also took 86% of the currency in circulation then&nbsp;out of the economy.&nbsp;

As much as 90% of all transactions in India are conducted with cash, and people have been severely inconvenienced by the sudden demonetisation.&nbsp;

(WION with inputs from PTI)&nbsp;

&nbsp;

&nbsp;

It said the shortage will continue even if all four of the country's mints work at optimum capacity

The Bank Employees Federation of India (BEFI) said Thursday that the current shortage of cash in the economy will continue for another four to five months -- even if all four of the country's mints work at optimum capacity. "Cash shortage will continue even if the four currency note printing presses run at their optimum capacity. It will take four to five months to restore normalcy in cash supply," PTI reported BEFI general secretary P K Biswas as saying. The BEFI also warned that the situation might get worse next week when people find it difficult or are unable to withdraw their salaries from banks and ATMs, and that that will make people more impatient. PTI reported that Biswas also alleged that at some bank branches, customers had vandalised bank property and halted banking operations due to the shortage of cash post-demonetisation. On the evening of November 8 this year, Indian Prime Minister Narendra Modi announced that 500- and 1,000-rupee notes cease to be legal tender. He said the move was aimed at doing away with black money -- which was one of his poll promises -- and money used to fund terror. But it also took 86% of the currency in circulation then out of the economy. As much as 90% of all transactions in India are conducted with cash, and people have been severely inconvenienced by the sudden demonetisation. (WION with inputs from PTI)

Demonetisation: Cash shortage to continue for 4 to 5 months, says bank employees' body

The Indian government on Wednesday tried to pacify the public following its announcement on Tuesday evening regarding withdrawal of Rs 500 and Rs 100 denomination&nbsp;currency notes.

In a bid to aid the transition, the government has directed all banks to remain operational for full days on Saturday and Sunday, November 12-13.

Banks and post offices will also start giving out replacement currencies from Thursday.

The government today expanded the list of services where the withdrawn notes will be accepted till November 11 midnight. It included payments for metro rail tickets, highway and road toll, purchase of medicines on doctor prescription from government and private pharmacies, LPG gas cylinders, railway catering and ASI monuments entry tickets.

A 72-hour relaxation for use of such notes was given on Tuesday for government hospitals, railway ticketing, public transport, airline ticketing counters at airports; milk booths, crematoria/burial grounds and petrol pumps.

Banks and ATMs were shut through Wednesday to remove old Rs 500/1000 notes and stock them with lower denomination and new hard-to-fake Rs 500 and Rs 2,000 currency notes. Banks will open on Thursday as RBI has sent truckloads of new notes throughout the country, while some ATMs will begin dispensing cash.

(WION with inputs from agencies)

The ATMs will also be stocked with Rs 100 notes by Thursday while the old Rs 500 and 1000 notes will be accepted at most government services

The Indian government on Wednesday tried to pacify the public following its announcement on Tuesday evening regarding withdrawal of Rs 500 and Rs 100 denomination currency notes. In a bid to aid the transition, the government has directed all banks to remain operational for full days on Saturday and Sunday, November 12-13. Banks and post offices will also start giving out replacement currencies from Thursday. The government today expanded the list of services where the withdrawn notes will be accepted till November 11 midnight. It included payments for metro rail tickets, highway and road toll, purchase of medicines on doctor prescription from government and private pharmacies, LPG gas cylinders, railway catering and ASI monuments entry tickets. A 72-hour relaxation for use of such notes was given on Tuesday for government hospitals, railway ticketing, public transport, airline ticketing counters at airports; milk booths, crematoria/burial grounds and petrol pumps. Banks and ATMs were shut through Wednesday to remove old Rs 500/1000 notes and stock them with lower denomination and new hard-to-fake Rs 500 and Rs 2,000 currency notes. Banks will open on Thursday as RBI has sent truckloads of new notes throughout the country, while some ATMs will begin dispensing cash. (WION with inputs from agencies)

Currency switch: Indian banks to remain open this weekend

Indian stocks cut losses and the rupee turned positive on Wednesday as the country&rsquo;s move to withdraw larger banknotes from circulation was seen as a positive for the economy, ushering transparency and leading to easing inflation.

The recovery offset an initial bout of uncertainty about the banking measures, which had been compounded as Republican candidate Donald Trump shocked investors by winning the US presidential election.

The broader NSE Nifty ended down 1.3 per cent after earlier falling as much as 6.3 per cent, while the rupee strengthened to a one-month high after earlier falls had prompted the central bank to intervene in currency markets. Bonds held on to gains from earlier in the session.

Indian Prime Minister Narendra Modi&rsquo;s unexpected announcement on Tuesday to remove from circulation 500 and 1,000 rupee notes was seen as likely to hit consumer demand in the short-term.

But any pain will turn to longer-term gains, as it will help usher in transparency, boost taxes and lower inflation, economists said.

Rupee

The domestic currency opened lower at 66.70 as against yesterday&#39;s closing level of 66.62 per dollar at the Interbank Foreign Exchange (Forex) market.

Later, it spiralled downward and languished between 66.90 and 66.70 during morning deals, it was still quoting 66.90 at 1045 hrs.

Meanwhile, the dollar Index was dropped by 2.06 per cent at 95.91 against a basket of six currencies in the early trade.

In overseas market, the US dollar sank more than three per cent versus yen and turned tail against other major peers in early Asian trade amid extremely volatile trade in global market.

The move hit consumer demand, as well as sectors long suspected to have been fuelled by illicit funds, such as gold and property, where many transactions are cash-based.

Real estate hit

Real estate shares were among the biggest decliners, reflecting a belief that large amounts of black money are steered towards property transactions. The Nifty Reality index ended down 1.6 per cent, with DLF Ltd, India&rsquo;s biggest property developer, down 17.3 per cent.

But banking shares recovered from earlier falls with the Nifty Bank sub-index ending flat after earlier falling as much as 7 per cent as coffers are expected to swell when people start tendering their cash.

Sectors with exposure to the US economy were among the biggest decliners due to uncertainty about Trump&rsquo;s presidency. The Nifty IT index, which exports heavily to the United States, ended down 3.25 per cent.

Investors lose Rs 1.75 lakh cr in market crash

Stock market investors became poorer by Rs 1.75 lakh crore today amid sharp sell-off in key indices after Donald Trump&#39;s victory in the US election and the government&#39;s decision to withdraw high-value currency notes.

The overall investor wealth measured in terms of valuation of all listed stocks on BSE fell Rs 1,75,192 crore to Rs 1,09,68,808 crore at the end of trade.

During the morning session, the total investor wealth was down by nearly Rs 6 lakh crore.

Market sentiment took a hit also on the government&#39;s sudden action to ban Rs 500 and Rs 1,000 currency notes in order to curb black money.

&quot;The double-whammy of US electoral prospects and Prime Minister&#39;s demonetisation steps announcement overnight had sunk Indian equities earlier in the day. The disruptive nature of the overnight announcement caught markets by surprise and deflated sentiment which were already on a low following global cues. The clampdown effect was more seen in realty sector where cash is still king,&quot; said Anand James, chief market strategist, Geojit BNP Paribas to PTI.

&quot;However, markets soon appreciated the long-term positives of the drive, which was followed by value buying across the board, staging a vertical recovery from the day&#39;s lows,&quot; he added.

Gold at 3-year high

Gold prices in India today shot up to three-year high of Rs 31,750 per ten gram,&nbsp;gaining a whopping Rs 900, following the government&#39;s scrapping high-denomination notes to curb black money and a firming trend overseas in view of Donald Trump&#39;s victory in US presidential election.

It was gold&#39;s highest closing level of Rs 31,820 after November 19, 2013 in the bullion&nbsp;market here.

India imports huge quantities of gold to meet domestic demand.

Sentiment also got a boost after gold jumped nearly 5 per cent in global market to its&nbsp;strongest in more than five weeks as investors sought safe havens in view of Trump&#39;s victory over Democrat Hillary Clinton in the US election.

Gold in Singapore, which normally sets the price trend in the market here, soared as much as 4.8 per cent, the biggest intra-day surge since June to USD 1,337.38 an ounce.

Silver also reclaimed Rs 45,000 per kg mark by registering a steep rise of Rs 1,150, largely in tandem with global trend as money flew to safe-haven investments following melting global equities.

Bullion traders said a significant rise of 3.43 per cent gold prices on the Multi Commodity Exchange further supported the uptrend, indicating more demand for the precious metals in coming sessions.

Some now expect the RBI to make deeper cuts to the repo rate than expected&nbsp;after it&nbsp;lowered it by a quarter percentage point last month.

For the government, increased transparency could yield more revenues. UBS estimated the government could reap an additional $30 billion in taxes, a vital support for a country that has long struggled to contain its fiscal deficits.

The decision is designed to bring billions of dollars in unaccounted wealth into the&nbsp;mainstream economy and to tackle India&rsquo;s rampant corruption and counterfeit currency&nbsp;problems.

Only around three percent of Indians pay any income tax at all and they face the prospect of serious scrutiny if they cannot account for a sudden increase in their bank balance.&nbsp;

Religious institutions

Temples and ashrams, where lavish donations can be a front for money-laundering, will be figuring out what to do next, as will those running illegal cricket betting rings and property dealers who often deal in black money.

(WION with agencies)

The decision to remove from circulation 500 and 1,000 rupee notes was seen as likely to hit consumer demand in the short-term

Indian stocks cut losses and the rupee turned positive on Wednesday as the country’s move to withdraw larger banknotes from circulation was seen as a positive for the economy, ushering transparency and leading to easing inflation. The recovery offset an initial bout of uncertainty about the banking measures, which had been compounded as Republican candidate Donald Trump shocked investors by winning the US presidential election. The broader NSE Nifty ended down 1.3 per cent after earlier falling as much as 6.3 per cent, while the rupee strengthened to a one-month high after earlier falls had prompted the central bank to intervene in currency markets. Bonds held on to gains from earlier in the session. Indian Prime Minister Narendra Modi’s unexpected announcement on Tuesday to remove from circulation 500 and 1,000 rupee notes was seen as likely to hit consumer demand in the short-term. But any pain will turn to longer-term gains, as it will help usher in transparency, boost taxes and lower inflation, economists said. Rupee The domestic currency opened lower at 66.70 as against yesterday's closing level of 66.62 per dollar at the Interbank Foreign Exchange (Forex) market. Later, it spiralled downward and languished between 66.90 and 66.70 during morning deals, it was still quoting 66.90 at 1045 hrs. Meanwhile, the dollar Index was dropped by 2.06 per cent at 95.91 against a basket of six currencies in the early trade. In overseas market, the US dollar sank more than three per cent versus yen and turned tail against other major peers in early Asian trade amid extremely volatile trade in global market. The move hit consumer demand, as well as sectors long suspected to have been fuelled by illicit funds, such as gold and property, where many transactions are cash-based. Real estate hit Real estate shares were among the biggest decliners, reflecting a belief that large amounts of black money are steered towards property transactions. The Nifty Reality index ended down 1.6 per cent, with DLF Ltd, India’s biggest property developer, down 17.3 per cent. But banking shares recovered from earlier falls with the Nifty Bank sub-index ending flat after earlier falling as much as 7 per cent as coffers are expected to swell when people start tendering their cash. Sectors with exposure to the US economy were among the biggest decliners due to uncertainty about Trump’s presidency. The Nifty IT index, which exports heavily to the United States, ended down 3.25 per cent. Investors lose Rs 1.75 lakh cr in market crash Stock market investors became poorer by Rs 1.75 lakh crore today amid sharp sell-off in key indices after Donald Trump's victory in the US election and the government's decision to withdraw high-value currency notes. The overall investor wealth measured in terms of valuation of all listed stocks on BSE fell Rs 1,75,192 crore to Rs 1,09,68,808 crore at the end of trade. During the morning session, the total investor wealth was down by nearly Rs 6 lakh crore. Market sentiment took a hit also on the government's sudden action to ban Rs 500 and Rs 1,000 currency notes in order to curb black money. "The double-whammy of US electoral prospects and Prime Minister's demonetisation steps announcement overnight had sunk Indian equities earlier in the day. The disruptive nature of the overnight announcement caught markets by surprise and deflated sentiment which were already on a low following global cues. The clampdown effect was more seen in realty sector where cash is still king," said Anand James, chief market strategist, Geojit BNP Paribas to PTI. "However, markets soon appreciated the long-term positives of the drive, which was followed by value buying across the board, staging a vertical recovery from the day's lows," he added. Gold at 3-year high Gold prices in India today shot up to three-year high of Rs 31,750 per ten gram, gaining a whopping Rs 900, following the government's scrapping high-denomination notes to curb black money and a firming trend overseas in view of Donald Trump's victory in US presidential election. It was gold's highest closing level of Rs 31,820 after November 19, 2013 in the bullion market here. India imports huge quantities of gold to meet domestic demand. Sentiment also got a boost after gold jumped nearly 5 per cent in global market to its strongest in more than five weeks as investors sought safe havens in view of Trump's victory over Democrat Hillary Clinton in the US election. Gold in Singapore, which normally sets the price trend in the market here, soared as much as 4.8 per cent, the biggest intra-day surge since June to USD 1,337.38 an ounce. Silver also reclaimed Rs 45,000 per kg mark by registering a steep rise of Rs 1,150, largely in tandem with global trend as money flew to safe-haven investments following melting global equities. Bullion traders said a significant rise of 3.43 per cent gold prices on the Multi Commodity Exchange further supported the uptrend, indicating more demand for the precious metals in coming sessions. Some now expect the RBI to make deeper cuts to the repo rate than expected after it lowered it by a quarter percentage point last month. For the government, increased transparency could yield more revenues. UBS estimated the government could reap an additional $30 billion in taxes, a vital support for a country that has long struggled to contain its fiscal deficits. The decision is designed to bring billions of dollars in unaccounted wealth into the mainstream economy and to tackle India’s rampant corruption and counterfeit currency problems. Only around three percent of Indians pay any income tax at all and they face the prospect of serious scrutiny if they cannot account for a sudden increase in their bank balance. Religious institutions Temples and ashrams, where lavish donations can be a front for money-laundering, will be figuring out what to do next, as will those running illegal cricket betting rings and property dealers who often deal in black money. (WION with agencies)

Indian currency withdrawal, Trump win: What it means for rupee, gold, real estate

In a significant measure to counter black money and fake currency notes in the Indian economy, the government on Tuesday announced the&nbsp;scrapping of 500 and 1000 denomination currency notes.&nbsp;

Prime Minister Narendra Modi, in an address to the nation, said the decision to de-recognise the notes will come into effect from midnight November 8.&nbsp;

&quot;The currency notes of Rs 1000 and Rs 500 will be just paper with no value,&quot; said Modi.&nbsp;

He advised the people to declare any currency or cash, which would not remain legal once the order comes into effect, with the banks from November 10 till December 30, 2016.&nbsp;

For those unable to deposit their notes of Rs 1000 and Rs 500 by December 30 for some reason, they can change the notes till March 31, 2017 by furnishing ID proof.

Besides depositing money in bank accounts, the Rs 500 and Rs 1000 notes can also be exchanged with lower denomination currency notes at designated banks and post offices on production of valid government identity cards like PAN, Aadhaar and Election Card from November 10 to November 24 with a daily limit of Rs 4000.

The Prime Minister said the government had succeeded in unearthing black money to the tune of $19 billion during the last two and a half years. But emphasised that the problem of corruption is deep-rooted in the country.&nbsp;

He urged all sections of the society and the media to help make the new measures successful. He also said that the government will soon introduce&nbsp;new currency notes of Rs 2000 and Rs 500 denominations.&nbsp;

Indian broadcasting agency Prasar Bharati tweeted the images of the new currency notes that are likely to be issued soon.&nbsp;

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
In Pics: New Rs 500 note that will be issued. 
(Pic : ANI) <a href="https://t.co/AGfAiIU4bm">pic.twitter.com/AGfAiIU4bm</a>
&mdash; Prasar Bharati (@prasarbharati) <a href="https://twitter.com/prasarbharati/status/796010947861037060">November 8, 2016</a></blockquote>
<script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">&times;</a></div>

&nbsp;

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
In Pics: New Rs 2000 note that will be issued. 
(Pic : ANI) <a href="https://t.co/WXwQRtRKl3">pic.twitter.com/WXwQRtRKl3</a>
&mdash; Prasar Bharati (@prasarbharati) <a href="https://twitter.com/prasarbharati/status/796010133675380736">November 8, 2016</a></blockquote>
<script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">&times;</a></div>

&nbsp;

The Prime Minister told that the central bank, the Reserve Bank of India has decided to shut all banks for public transactions tomorrow.&nbsp;Some ATMs will also not function tomorrow and day after as RBI stocks banks and ATM machines with lower denomination notes.&nbsp;

ATM withdrawals will be restricted to Rs 2000 per day and withdrawals from bank accounts will be limited to Rs 10,000 a day and Rs 20,000 a week.

&quot;Banks will be closed tomorrow. It will cause some hardship to you....Let us ignore these hardships... In country&#39;s history, there comes a moment when people will want to participate in the nation building and reconstruction. Very few such moments come in life,&quot; Modi said.&nbsp;

Rs 500 and Rs 1000 notes will be valid for transactions related to booking of air tickets, railway bookings, government bus ticket counters and hospitals till the midnight of November 11 and 12.

(WION)&nbsp; 
&nbsp;

It is the latest step by the Narendra Modi-led government to tackle the deep-rooted problem of corruption and black money

In a significant measure to counter black money and fake currency notes in the Indian economy, the government on Tuesday announced the scrapping of 500 and 1000 denomination currency notes. Prime Minister Narendra Modi, in an address to the nation, said the decision to de-recognise the notes will come into effect from midnight November 8. "The currency notes of Rs 1000 and Rs 500 will be just paper with no value," said Modi. He advised the people to declare any currency or cash, which would not remain legal once the order comes into effect, with the banks from November 10 till December 30, 2016. For those unable to deposit their notes of Rs 1000 and Rs 500 by December 30 for some reason, they can change the notes till March 31, 2017 by furnishing ID proof. Besides depositing money in bank accounts, the Rs 500 and Rs 1000 notes can also be exchanged with lower denomination currency notes at designated banks and post offices on production of valid government identity cards like PAN, Aadhaar and Election Card from November 10 to November 24 with a daily limit of Rs 4000. The Prime Minister said the government had succeeded in unearthing black money to the tune of $19 billion during the last two and a half years. But emphasised that the problem of corruption is deep-rooted in the country. He urged all sections of the society and the media to help make the new measures successful. He also said that the government will soon introduce new currency notes of Rs 2000 and Rs 500 denominations. Indian broadcasting agency Prasar Bharati tweeted the images of the new currency notes that are likely to be issued soon. In Pics: New Rs 500 note that will be issued. (Pic : ANI) pic.twitter.com/AGfAiIU4bm — Prasar Bharati (@prasarbharati) November 8, 2016 × In Pics: New Rs 2000 note that will be issued. (Pic : ANI) pic.twitter.com/WXwQRtRKl3 — Prasar Bharati (@prasarbharati) November 8, 2016 × The Prime Minister told that the central bank, the Reserve Bank of India has decided to shut all banks for public transactions tomorrow. Some ATMs will also not function tomorrow and day after as RBI stocks banks and ATM machines with lower denomination notes. ATM withdrawals will be restricted to Rs 2000 per day and withdrawals from bank accounts will be limited to Rs 10,000 a day and Rs 20,000 a week. "Banks will be closed tomorrow. It will cause some hardship to you....Let us ignore these hardships... In country's history, there comes a moment when people will want to participate in the nation building and reconstruction. Very few such moments come in life," Modi said. Rs 500 and Rs 1000 notes will be valid for transactions related to booking of air tickets, railway bookings, government bus ticket counters and hospitals till the midnight of November 11 and 12. (WION)

Indian government recalls Rs 500 and Rs 1000 denomination currency notes

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