Published On : Tue, Nov 8th, 2016

Rs 500 and 1000 currency notes stand abolished from midnight: PM Modi

500-and-1000-note
New Delhi:
In a major step to check black money, Prime Minister Narendra Modi on Tuesday announced demonetization of Rs 500 and 1000 currency notes with effect from midnight, making these notes invalid in a major assault on black money, fake currency and corruption. 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.

Modi said the notes of Rs 500 and Rs 1000 “will not be legal tender from midnight tonight” and these will be “just worthless piece of paper.” 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.

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.

The prime minister expressed confidence that the staff of banks and post offices will rise to the occasion to introduce the new order within the available time. He said he is hopeful that political parties, workers, social organisations and the media will go further than the government in making it a success.

“Banks will be closed tomorrow. It will cause some hardship to you….Let us ignore these hardships… In country’s history, there comes a moment when people will want to participate in the nation building and reconstruction. Very few such moments come in life,” Modi said.

The prime minister said the measures were aimed at curbing the “disease” of corruption and black money which have taken deep root. “There is a need for a decisive war against the menace of corruption, black money and terrorism… Corruption, black money and terrorism are festering wounds which make the country hollow from within,” he said.

Following the announcement, there were huge crowds outside ATMs across the country as people lined up to withdraw currency of smaller denominations.

Highlights

  1. Currency notes of Rs 500 and Rs 1000 denominations will not be legal beginning November 9
  2. New notes of Rs 500 and Rs 2,000 would be released and circulated soon
  3. ATMs will not work on November 9, and at some places on November 10 as well
  4. Those unable to deposit Rs 1000, Rs 500 notes by December 30 for some reason, can change them till March 31, 2017 by furnishing ID proof
  5. People can deposit notes of Rs 1000 and Rs 500 in their banks from November 10 till December 30, 2016
  6. Currency notes of Rs 1000 and Rs 500 will be just paper with no value
  7. Banks will remain closed on 9th November
  8. All banks and post offices will remain shut tomorrow
  9. Cashless fund transfer won’t be affected by this
  10. Respite for people for the initial 72 hours, Govt hospitals will accept old Rs 500 and 1000 notes till 11 November midnight
  11. Some medical facilities will be exempted from this for the time being
  12. Rs 20,000 weekly cap on exchange of Rs 500 & Rs 1,000 notes