In a shocking move, the prime minister announced that Rs. 500 and Rs. 1000 notes cannot be used as legal tender from midnight 8th Nov. 2016. The main issue is handling this crisis for next week or so until things calm down.
ATMs will not work for the next two days and banks the next day as they prepare themselves for this transition. Thankfully, we can still buy petrol with these notes until Nov. 11th. But they may not accept these notes - they will anyway have to give it to the bank! Bus and railway booking can also be done with these notes.
To handle this suddenly development calmly
- we need to first scrounge around for Rs. 100, Rs. 50. Rs. 10 Rs. 5 notes and coins to pay for small transactions in the next few days.
- We just finished checking the money in our God-pot 🙂 - a pot in which we put some money each month to be handed over to a temple. Feels like Chennai floods all over again!
- Use debit or credit card as much as possible. Offer to do a bank transfer.
- Avoid going to banks or ATMs for the next few days if possible. Expect long queues perhaps in fear! Same for petrol bunks.
- Lend some cash to hired help.
- Provide exact change to shops that do not take plastic money.
The Rs. 500 or Rs. 1000 that you have can be deposited before Dec. 30. They will then become valuable again. Else up to Rs. 4000 can be exchanged at Banks or post offices. This is not necessary, in my opinion.
Please share if you can think of anything else.