Withdrawal of Rs 500, Rs 1,000 notes can create problem for common man: Congress

New Delhi: Even as PM Narendra Modi made the big announcement on Tuesday evening that high denomination notes of Rs 500 and Rs 1000 will no longer be legal tender from 09 November, 2016 midnight, Congress raised several questions over government's "sudden" decision and expressed apprehension that it could create a lot of problems for traders, small-time businessmen and housewives.

Party chief spokesperson Randeep Surjewala, however, made it clear that the party would always support "meaningful, specific and pointed" steps to unearth black money.

He also sought to know if the Prime Minister has brought this scheme without giving much thought just to cover his "failure" to bring black Rs 80 lakh crore black money stashed abroad and deposit Rs 15 lakh in the account of every citizen.

Surjewala suggested that the way the measure had been brought about "without studying" the situation properly could create a host of problems for the common man given the fact that festive and marriage season was on, paddy has been harvested and sent to market, and sowing wheat and other rabi crops was under progress.

He said the move could turn up another 'jumala' (catchphrase) of the Prime Minister, as per PTI.

He sought to know whether the government had consulted economists and finance experts before implementing the "far-reaching" decision.

 As part of sweeping steps to battle black money, PM Modi said in a televised address that all the 500 and 1,000 denomination notes can be deposited in banks and post offices between November 10 and December 30.

They can also be exchanged across the bank counters by showing government-issued ID proof. 

New Rs 500 and Rs 2,000 denomination notes will be issued, he said.

"The existing 500 and 1,000 denomination notes can no more be used for transactions," PM Modi said, speaking first in Hindi and then in English. "They are now only mere paper."

The Prime Minister said these measures will help the government to fight corruption, black money and counterfeit currency, which he alleged was funding terrorism.

PM Modi said this was being done to tackle the menace of black money in the country, which he said had sapped the economy, as per IANS.

He 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, he said.

Banks have also been ordered to remain shut on Wednesday.

PM Modi said that for medical reasons, the old notes will continued to be accepted till November 11.

He also said that retail petrol pumps will accept such notes till November 11, after which they will have to keep a register of such notes for some time.

(With Agency inputs)