PM Modi's mann ki baat 8 nov 2016

Summary of the important announcement :

1. Black money issue,  500 rupees and 1000 rupees banned from Midnight. 

2. ATM's wouldn't wouldn't work on 9th and 10th November. Rather the withdrawal limit is Rs.  2000 only. 

3. All Residents have option till 30th December 2016, to deposit their existing cash balance of 500 and 1000 rupees in their bank accounts. 

4. ATM withdrawal is limited post 11th Nov to 10000 per day, but initial few days it would be 2000 Rs.  Only. 

5. Emergency periods like hospitals and chemist,  train ticket booking and airline ticket booking,  petrol pumps may accept the old notes to 11th November. 

6. No changes in online,  card, cheque or any other plastic money transactions. 

7. 9th November,  banks wouldn't be available for public banking services. 

8. New notes of 500 rupees and 2000 rupees would bring in circulation, mostly from 31st March 2017.

9. This one is not clear,  but old notes can be exchanged with rbi till 31st March 2017. I guess post 30th December.

Notes of Rs 500 and Rs 1000  cannot be legal for exchange() beginning from  November 8 midnight & November 9. This was announced by Prime Minister Narendra Modi in a special address to the nation on Tuesday evening. He said the move was aimed at curbing the negative impact of fake currency, black money, corruption and terrorism on the nation's economy.

The legal tender of the Rs 500 and Rs 1000 notes comes into effect the midnight between Tuesday and Wednesday, as soon as the date turns to November 9.

He said Rs 500 and Rs 1000 notes can be deposited a post offices and banks without any charge till December 30. Banks would be closed for public business on November 9, to allow them to tackle the rush of people who might want to deposit their notes. Cashless fund transfers would remain unaffected.

"Your money is yours. You will note lose anything. The government will ensure that," said PM Modi, in his address to the nation.

"We should be able to make the sacrifice of adjusting to the such a move in national interest, as it aims to tackle the evils of corruption, black money, fake currency and terrorism," said PM Modi.

He also announced a number of safeguards to ensure that medical payments or other critical services are not affected by the move. Hospitals, petrol pumps, railway reservation counters, airports, crematoriums and other key services will continue to accept the notes for 72 hours, till the end of November 11, PM Modi said.

The extreme measure came almost immediately after PM Modi chaired a meeting of the Union Cabinet. Earlier in the day, Modi had also met National Security Adviser Ajit Doval and the chiefs of the armed forces.

Before making the announcement, Modi had explained the rationale for the move. He had stressed on the negative impact of corruption, black money, fake currency and terrorism on the economy

1000 and 500 notes

In todays surprise mann ki baat some revelations were made. 
Advantage
In short-People with black money are stuck from both sides.
If they don't submit their money in a bank account (which is exactly what people do to hide black money) their currency loses value and its as good as nothing.
If they submit money in the bank then they are accountable for money and need to pay tax for the same amount.
Government wins both way

RBI to issue ₹2000 Rupees Notes coming February 2017

Not just a piece of paper There is much more in this note Read the full content of this message

India is all set to add one more denomination to its currencies shortly. The Reserve Bank of India (RBI) will be issuing Rs 2,000 currency notes, the highest to come into circulation, even as some experts feel7 high-value denominations should be discontinued to curb black money.

The Rs 2000 currency is designed keeping in mind to eradicate the black money issues using state of the art indigenous nano technology, every Rs. 2000 currency note is embedded with a NGC (Nano GPS Chip)

How the embeded NGC Technology Works?
The unique feature of the NGC is it dosent need any power source. It only acts as a signal reflector. When a Satellite sends a signal requesting location the NGC reflects back the signal from the location, giving precise location coordinates, and the serial number of the currency back to the satellite, this way every NGC embedded currency can be easily tracked & located even if it is kept 120 meters below ground level. The NGC cant be tampered with or removed without damaging the currency note

How will this help eradicate black money menace?
Since every NGC embeded currency can be tracked. The satellite can identify the exact amount of money stored at a certain location. If a relatively high concentration of currency is found a certain location for a longer period of time at suspicious locations other than banks & other financial institutions. The information will be passed on to the Income Tax Department for further investigation

Just a beginning of the end of black money in india. A person with relatively small stack of black money can break it into various parts and try to spend 'hard cash' as much as possible within the 50 days time span

Example- If a person X has 15 lakh rupees in black money he can spend the same money to buy certain stuff Like commodities or gold or electronic items which can be hidden from government by not making a bill of purchase