From midnight of 8th November 2016, Rs 500 and Rs 1000 currency notes will not be used. “These notes are just papers from tomorrow,” says Prime Minister Narendra Modi today.
In his televised address to the nation, Modi said people holding notes of Rs 500 and Rs 1000 can deposit the same in their bank and post office accounts from November 10 till December 30.
He said the government has been fighting the menace of black money and corruption ever since it assumed power two years ago. He also urged people to help government in its fight against fake currency and black money.
However, he said that all notes in lower denomination of Rs 100, Rs 50, Rs 20, Rs 10, Rs 5, Rs 2 and Re 1 and all coins will continue to be valid. He also announced that new notes of Rs 2000 and Rs 500 will be introduced.
Banks will be closed on November 9. The ATMs will not function till November 9, and in some places till November 10.
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.
People who possess Rs.500 or Rs. 1000 currency notes after December 30 can exchange it at Reserve Bank of India by providing a declaration. This is till March 31, 2017.
There are, however, some exemptions. Government hospitals and international airports.
These notes should be exchanged in banks and head post offices and sub post office within December 30, 2016, by providing a valid identity proof such as Aadhaar, PAN card or voter ID card.