15 lakh crores currency banned in a single stroke
The statement by Prime minister Narendra Modi to ban existing 500 and 1000 rupee notes is sending shivers across the country. His announcement apparently turned around 2320 crore notes into mere papers. This amounts to an approximate total value of 15 lakh crore rupees. But the portions of black and white among this is not known yet. These 1000 and 500 notes turn white only if they are exchanged for new currency notes. If these are not exchanged before December 30th, all these become black money and tender useless. It is relatively easier to exchange if it is in fact hard earned money, what you need is just a ID card.
But if one has large amount of black money, then you are in for trouble. The financial ministry is already watching with microscopic eyes. If caught, you might be booked. If any attempts are made hiding identity, banks will immediately inform to the finance ministry with your photo. According RBI governor Urjit Patel, there 1650 crores of 500 rupee notes, amounting 825 lakh crores and the same of 1000 rupee notes is about 670 crores totaling into 6.7 lakh crore rupees. This makes the total value of abolished notes 14.95 lakh crore rupees. This move by the government will sure send shivers down the spine of people holding black money.