RBI moves to curb black money:

The Reserve bank of India has  decided to withdraw from circulation all currency notes issued prior to 2005.“From April 1, the public will be required to approach banks for exchanging these notes. Banks will provide exchange facility for these notes until further communication,’’ the RBI said on Wednesday, clarifying that notes issued before 2005 would continue to be legal tender.

“The public can easily identify the notes to be withdrawn as the notes issued before 2005 do not have on them the year of printing on the reverse side,’’ the RBI said.

From July 1, however, those wanting to exchange more than 10 pieces of 500 and 1000 rupee notes in a bank where they do not have an account will have to provide proof of residence and identity. The RBI’s move will have the effect of flushing out black money, according to bankers.

The move will have very good impact on many issues like

1 ) As per RBI the notes printed after 2005 has additional technical features which can control fake currency circulation.

2 ) The move will have effect on black money holders, since they have to submit their notes in banks with valid authentication.

3 ) Since the election is very near, and the black money will have a very huge effect in the elections in India, The move from RBI will have very positive effect on election also.

4 )  The move helps RBI to calculate the money circulation in the country, in-turn to calculate the inflation.

5 ) The move may help out to flush out the fake notes in the circulation.

Having all these positive points, we hope the process gives better for the country economy.

Please post your views in regards this view ..