09/11/2016 6:48 PM IST | Updated 10/11/2016 8:44 AM IST

Take A Deep Breath And Follow These Steps To Deal With The ₹500/1000 Cash Crunch

Mukesh Gupta / Reuters

When it was announced on Tuesday afternoon that Modi would be addressing the nation that evening, we all thought that we'd hear something along the lines of Mann ki Baat. But what happened at 8pm on 8 November 2016 is historically the biggest and the most surprising decision ever made in the direction of the fight against black money, corruption and fake notes that are used for anti-national and illegal activities in India.

The government's very bold step of discontinuing ₹500 and ₹1000 notes from 12 midnight took the country by surprise.

So, what happens now? What to do? How is this to be dealt with?

Here are all the options that are now open to you.

● The existing ₹500 and ₹1000 notes are invalid now and cannot be used as money.

● New notes with denominations of ₹500 and ₹2000 have been introduced.

● For the change to happen, banks were closed to the public on Wednesday; ATMs will stay closed on Wednesday and Thursday this week.

● Once the banks open from 10 November 2016, you can deposit your ₹500 and ₹1000 notes in your account until 30 December 2016.

● For exchanging old notes of ₹500 and ₹1000 with the new ones, you can head to any of the 19 offices of RBI or any bank or recognized post offices. You need to show valid ID proof.

● For this purpose, a limit of ₹4000 per day has been instituted up to 24 November, 2016. This limit will be reviewed and may change subsequently.

● For withdrawals from banks, a limit of ₹10,000 per day—but a maximum of ₹20,000 per week—has been finalized. Again, the limits may be increased in the coming few days.

● A limit of withdrawals from ATMs has also been decided at ₹2000 per day initially, which will be later raised to ₹4000 from 19 November 2016.

· Note: All the limits defined above are per person.

Remember, despite all the confusions relating to rupee notes, you are free to make any kind of non-cash payments through cheques, demand drafts, debit or credit cards and any electronic fund transfer. There's no limit on how much money you can deposit with your bank.

Also, until 11 November, these notes will be accepted at government hospitals, railway ticket booking counters, government bus ticket counters, airline ticket counters at airports, fuel stations authorized by public sector oil companies, co-operative stores authorised by the central or state governments, government milk booths, and crematoriums and burial grounds.

Will I get the full amount back when I exchange the discontinued notes?

Yes, you will get the full amount in new denomination notes back when you exchange it from banks/RBI offices/post offices subject to the allowable limits, provided a valid ID proof is furnished at the time of transaction.

A sample of request slip for exchange of old notes into new notes has been issued and the same is attached below for your reference, so that you have a basic idea before going to a bank:

In retrospect, we can say that something big was in the offing since the inception of the Income Declaration Scheme (IDS), which the government had marketed as the last chance to convert your black money into white money. That something big is here now.

The change is sudden and will definitely cause inconvenience in the nation since ₹500 and ₹1000 notes accounted for 85% of the total currency. But we should look at the big picture and celebrate this move, because in the long run it will be a game-changer for the Indian economy.

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