As everyone is aware to fight against corruption and black money in India, Indian Prime Minister Narendra Modi is taken a decision on tuesday night to discontinue Rs. 500 & Rs.1000 notes after mid-night. That is millions of high-denomination currency notes would no longer be legal tender. In his speech, Modi specifically pointed out that these large-value notes were being used to finance corruption and fund terrorism.
This move will also cause short-term pain and chaos for the working class, small businesses and nearly anybody who deals with cash on a daily basis.
Modi Ji also said that ATM withdrawals will be restricted to Rs 2,000 per day till November 11, after which this limit may be increased slowly. Withdrawals from bank accounts will be limited to Rs 10,000 for the first few days.
Old notes will be accepted by hospitals, petrol pumps railway stations, metro stations and chemists (up to November 11).
Finance Minister Arun Jaitley said that the Modi government wants to push the economy in a cashless direction, which in turn will lead to a massive slump in the black money economy.
With this move, lot of money that’s outside the system will have to get into the system,” Jaitley said.
Hence after announcement of this news, E-commerce majors Amazon, Flipkart and Snapdeal have stopped their COD (cash-on-delivery) mode of payment.
But soon after , they are coming up with Discounts & Gift cards to make cashless offers.
Good article on cashless transaction
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