NEW DELHI: 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. Government 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 value” Modi said.
The move, Modi said, is aimed at curbing the menace of corruption, black money, counterfeiting and terrorism; these denominations are among the most counterfeited.
The PM also said there would be restrictions on daily and weekly restrictions from bank ATMs.
Prime Minister said people can deposit these currency notes in the banks in the next 50 days. In his opening remarks, PM Modi said black money to the tune of Rs 1.25 lakh crore has been unearthed during last two-and-a-half years. Prime Minister also said that banks will be closed on November 9.
"Corruption, fake currency and terrorism are festering wounds, holding back the economy," he added.
In a televised speech, Modi said the step had to be taken to cleanse the system of black money. “The step had to be taken in full secrecy and no official in any financial institution was reinforced,” PM Modi said. “The initiate shall destroy the acts of money launders, black marketers and corrupt individuals.”
“Terrorist from across the border has been using fake currency to carry out their nefarious designs,” Modi said.
All banks across the country shall remain closed today, PM Modi said.
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