Prime minister Narendra Modi made a surprise move on Tuesday when he announced that all currency notes of Rs 500 and Rs 1,000 are being scrapped with effect from Monday midnight. None of the notes will have any legal value from midnight.
He said it's a major assault on black money, fake currency and corruption.
There are certain services that will continue to accept the notes for 3 days. After that people have till December 30 to exchange the old notes.
You will be able to use the notes in certain stores like public hospitals, government-owned stores, petrol pumps. There will also be restrictions on withdrawal of funds from ATMs.
Banks will remain shut on November 9.
There is no restrictions on internet banking, cash, demand draft transactions.
Rs 10,000 daily cash withdrawal and Rs 20,000 weekly cash withdrawal limit
In another major announcement, a new series of Rs. 500 currency notes and Rs. 2000 currency notes will be brought into circulation.
Modi started his address to the nation by saying that the nation needs to fight corruption and black money.
The process of cash circulation is directly related to corruption in our country impacting the lower classes of our society: PM Modi pic.twitter.com/Kb103iFnhX— ANI (@ANI_news) November 8, 2016
He went on to announce that from midnight today, that is November 8, all Rs 500 and Rs 1000 notes are no longer legal tender.
But don't panic. You have 50 days (From 10 Nov to 30 Dec) to deposit notes of Rs 500 & Rs 1000 in any Bank or post office.
500 और 1,000 रुपये के पुराने नोट, 10 नवम्बर से लेकर 30 दिसम्बर तक अपने बैंक या डाक घर के खाते में बिना किसी सीमा के जमा करवा सकते हैं: PM— PMO India (@PMOIndia) November 8, 2016
Respite has been given to people for the initial 72 hours, and the government hospitals will accept old Rs 500 and 1000 notes till 11 November midnight.
He also moved on to the topic of "terrorists from across the border" saying they are spreading counterfeit currency notes.
"We hear stories of how autorickshaw driver returns gold left by a passenger in his vehicle. These stories tell how common people are honest. It is only a few people engage in corruption for selfish reasons," he said.