In a surprise address to the nation on Tuesday evening, Prime Minister Narendra Modi announced scrapping of currency notes of Rs 500 and Rs 1,000 to curb black money.
“From midnight on November 8, 2016, Rs 500 and Rs 1,000 notes are no longer legal tender,” the prime minister said.
The PM said corruption and black money is something his government has fought for immediately after assuming office.
The people of India have 50 days, from November 10 to December 30, to deposit notes of Rs 500 and Rs 1,000 in any Bank or Post Office. For this purpose, a photo ID card will be needed.
However, there will be a respite for people for the initial 72 hours. Govermnet hospitals will accept old Rs 500 and Rs 1,000 notes till November 11 midnight. Petrol bunks and Railways ticket booking counter will also accept the notes for 72 hours.
On November 9 and, in some places, on November 10, ATMs will not work. Banks will be remained closed for public work on Wednesday, the PM said.
“There will be no change in any other form of currency exchange, be it cheque, DD, payment via credit or debit cards etc,” Modi said.
“Notes of Rs 2,000 and Rs 500 will be circulated soon, the Reserve Bank of India has decided to limit the notes with higher valuem” Modi said.