In a total surprise move, the Indian Prime Minister Narendra Modi scrapped Rs 500 and Rs 1000 notes making them invalid in one of the boldest crackdowns on black money and corruption in India.
Modi, on Tuesday evening, said Rs. 500 and Rs. 1000 notes will not be used effective midnight.
Calling the move one that would fight the disease of black money, Modi said all Rs 500 and Rs 1000 notes must be deposited at post offices and banks by the end of December.
The PM said post November 8 midnight, the currency notes of Rs 500 and Rs 1000 would be only paper, with no value and would no more be legal tender.
Read what the government wants you to Do and Not Do with your Rs 500 and Rs 1000 notes, which were last demonetized in 1978.
- Indians must turn their Rs 500 and Rs 1000 currency notes to banks and post offices in next 50 days.
- There will be a cap of Rs 20,000 on the amount of money that can be exchanged in a week and Rs 10,000 in a day.
- Cashless fund transfer is not expected to be affected by the move.
- Those unable to deposit Rs 500 and Rs 1000 notes by December 30 will be able to exchange them till March 31, 2017 by furnishing identity proof.
- For the initial 72 hours, government hospitals will accept old Rs. 500 and 1000 notes till November 11 midnight.
- Petrol pumps and retail outlets will have to keep every single entry of cash transaction with 500 and 1000 notes till November 11.
- Crematoriums and cemeteries will be allowed to transact 500 and 1000 notes till November 11.
- Tourists can change these notes at airports.
- Notes of Rs. 2000 and Rs. 500 will be circulated by the Reserve Bank of India shortly.
- ATMs will not work on November 9 and in some places on November 10.
- Banks will be closed on November 9 for public transactions.
- There will be no change in any other form of currency exchange be it cheque, demand drafts, via credit or debit cards.
- The government will not allow exchanging Rs 500 & 1000 notes for 100s for more that Rs 4000 per day.