In stealth mode the Government of India has withdrawn the legal Status of Rs 500 and Rs 1000 notes.
With a view to curbing financing of terrorism through the proceeds of Fake Indian Currency Notes (FICN) and use of such funds for subversive activities such as espionage, smuggling of arms, drugs and other contrabands into India, and for eliminating Black Money which casts a long shadow of parallel economy on our real economy, it has been decided to cancel the legal tender character of the High Denomination bank notes of Rs.500 and Rs.1000 denominations issued by RBI till now. This will take effect from the expiry of the 8th November, 2016.
- ATMs will not work on November 9, and at some places on November 10 too.
- Banks will remain closed on 9th November.
- Rs 20,000 weekly cap on exchange of Rs 500 & Rs 1,000 notes.
- Cash withdrawals from ATM and other machines will be restricted to ₹ 2,000 per day.
This is what is know, but how do we the public deal with this and go about on our daily work?
UPI - Unified Payments Interface
Namo's clear plan & vision: Jandhan launch, linking Aadhar to bank accts, UPI, Voluntary black money declaration all leading to this moment.— . (@shan_daar) November 8, 2016
— Satish Manohar Talim (@IndianGuru) October 20, 2016
RBI and the Government are pushing for a Cashless India and wants everyone to use digital money/transactions to avoid Black Money. This has been planned since a long time back and many policies have been put in place. These policies will now help us in the new Digital India.
The RBI launched a new Payment Method called UPI (Unified Payments Interface) a few months ago. This method makes payments and transactions EXTREMELY easy and quick. It's even faster than taking money out of your wallet!
The Government wants us to use this instead of Physical cash as it is helpful for everyone.
Unified Payments Interface (UPI) is a system that powers multiple bank accounts(of participating banks),several banking services features like fund transfer (P2P) ,merchant payments in single mobile application. UPI was launched by National Payments Corporation of India with Reserve Bank of India's(RBI) vision of migrating towards a 'less-cash' and more digital society. Unified Payment Interface (UPI) has built on the Immediate Payment Service(IMPS) platform.
UPI platform can be used for:
- Immediate money transfer through mobile device round the clock 24*7 and 365 days.
- Single mobile application for accessing different bank accounts
- Single Click 2 Factor Authentication .
- Virtual address of the customer for Pull & Push provides for incremental security with the customer not required to enter the details such as Card no, Account number; IFSC etc.
- Bill Sharing with friends.
- Merchant Payment with Single Application or In-App Payments.
- Scheduling PUSH and PULL Payments for various purposes.
- Utility Bill Payments, Over the Counter Payments, Barcode (Scan and Pay) based payments.
- Donations, Collections, Disbursements Scalable.
- Raising Complaint from Mobile App directly.
How to get UPI?
- Its Easy! Just download PhonePe app on your smartphone. Set it up in under 1 minute by just pressing next. Its super easy but at the same time very secure. (The same SIM with the phone number registered with your bank should be in the phone at the time of signing up.) https://play.google.com/store/apps/details?id=com.phonepe.app&hl=en
- Every major bank has their own UPI app but I recommend PhonePe as it is very good.
- You can then set a 6 Digit number as PIN. You will only have to remember this number and nothing else!
- Now set something called a Virtual Address, it's similar to Email address but here it looks like Ex: ajay@ybl. You can give any name you want. (This makes UPI more safe than normal net banking because you can give any random name and strangers won't know your ACTUAL bank ac details!)
- Now all you need to do is send or receive any amount (Even 1 Rs!) using your address.
UPI has no charges or fees of any kind and is free.
Lets embrace Digital India and do our part in stopping Black Money.
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Did my first Unified Payment Interface (UPI) transaction - it was really a cool experience and super fast #india— Satish Manohar Talim (@IndianGuru) October 25, 2016
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