Currency Rs. 500 Rs.1,000 ceased to be legal tender by midnight Tuesday. Prime Minister Narendra Modi said in a surprise address to the nation on Tuesday evening. He said he decided to destroy the black money and corruption.
Notes of Rs. 100, Rs. 50, Rs. 20, RS. 10, RS. 5, Rs. 2 and Re. 1 remain legal tender and will unaffected by the decision, the Prime Minister said, adding that all banks and ATMs will be closed on Wednesday and ATMs in some places on Thursday as well.
Mr. Modi said that the existing Rs. 500 or Rs. 1000 notes can be deposited at the bank or post office accounts between 10 November and 30 December.
However, within 72 hours, public hospitals, rail, air and public institutions bus ticket booking staff will continue to accept old notes. The old banknotes will be accepted until November 11 in petrol, diesel and gas stations, authorized public sector oil companies, consumer cooperation shops, authorized by the state or the central government, milk booths accredited by States and crematoriums.
RBI to issue new Rs. 500 and Rs. 2,000 notes from November 10, the new Rs. 500 note will include the Red Fort and the Rs. 2000 note will include Mangalyaan, said the Minister for Economic Affairs Shaktikanta Das at a briefing on late Tuesday night. These remarks will be available from 10 November.
After ATMs begin to function, people will withdrawal only Rs. 2000 a day, which will be increased to Rs. 4000 later, said Mr. Modi in the 40th minute televised address to the nation.
Mr. Modi said that there will be no restrictions of any kind of cashless payments with checks, drafts demand, debit or credit cards, and electronic funds transfer.