Rumors are circulating about withdrawing the Rs 500 note. The Reserve Bank of India has issued an order, and as per its latest directive, the RBI has speculated about another demonetization of Rs. 500 notes. Alongside this possibility, demonetization will cover a substantial number of notes, like 2016. This made a massive group of people panic, including common people and small businessmen.
What Is Happening at The Moment?
The Government also gave indications that Rs 500 fake notes are being widely circulated in the markets. Therefore, the RBI has instructed banks to have much stricter monitoring and improve their processes with regard to the verification of Rs 500 notes. So, most people think this note could likely be demonetized again.
What would Be The Effect on The Country If Rs. 500 notes Were Stopped by the RBI?
Disruption would occur in cash transactions.
Problems would be there in the business's functioning.
There will be rushes at banks.
Most of all, it would hit the poorer section of the population.
How Can One Prepare Oneself?
- Practice proper habits of digital transactions.
- Do not hoard lots of Rs 500 notes.
- Run off to trusted sources for news and run away from rumor spreading.
The RBI has not directed any banks to stop disbursing Rs 500 notes. Instead, it has instructed all the banks and White Label ATM Operators (WLAOs) to confirm that 75% of all ATMs only dispense Rs 200 and Rs 100 notes till September. And the percentage will be 90% till March 2026.
It remains to be seen whether or not the Rs 500 note will become invalid. What is quite clear with this action from the Government is that big decisions can be made by the government. But again, it is rumored to be stopped at the 500 notes. It would be important to stay informed regarding this matter and make subjective calls starting now. We have to stay updated about any announcements from the Government.
