Addressing the country, Prime Minister Narendra Modi has announced that from midnight currency notes of Rs 1000 and Rs 500 denomination will not be legal tender.The Rs 500 and Rs. 1000 notes must be deposited at post offices and banks by the end of December, the PM said. The move was aimed at fighting black money. 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. 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.
Here are the highlights from his address:1. Rs 500 and Rs 1000 banned from midnight. 2. On November 9 and in some places on November 10, ATMs will not work. 3. Deposit currently used notes of Rs 500 and Rs 1000 in post office accounts or banks by December 30, 2016. There will be no limit on the deposit amounts. The limit for this is Rs 4000 upto Nov 24. 4. ATM withdrawal is limited post November 11 to 10,000 per day, but initial few days it would be Rs 2000 only.
5. Emergency periods like hospitals and chemist, train ticket booking and airline ticket booking, petrol pumps may accept the old notes till November 11. 6. There’ll be a limit on withdrawal of Rs 10,000 per day and Rs 20,000 per week. This limit will be increased in the coming days. 7. No changes in online, card, cheque or any other plastic money transactions. 8. All banks will remain closed for public work on November 9. 9. New notes of Rs 500 and Rs 2000 would be in circulation, mostly from March 31, 2017. 10. 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