Prime Minister Narendra Modi, in a sudden address to the nation on Tuesday, announced that Rs 500 and Rs 1,000 denomination notes are being withdrawn from midnight. He said that such notes will become "mere paper". Modi said this was being done to tackle the menace of black money in the country, which has sapped the economy. He said the Indian economy was a bright spot but corruption and black money were destabilising the country.
Declaring war on black money, the Prime Minister said that the Rs 500 and Rs 1,000 denomination notes can be deposited in banks and post offices, and also exchanged across the bank counter by showing government-issued ID proof by December 30.
However, for those who cannot change their Rs 500 and Rs 1000 notes by December 30, they can do so in the RBI till March 31, 2017 providing they provide ID proof. He said credit cards and debit cards will work as normal and be accepted so. Meanwhile, the Prime Minister informed that new notes of Rs 500 and Rs 2000 would be issued on November 10.
He also said that ATM withdrawals will be restricted to Rs 2,000 per day till November 11, when this limit may be increased slowly. Withdrawals from bank accounts will be limited to Rs 10,000 for the first few days. Banks have also been ordered to remain shut on Wednesday, he said. Modi said that for medical patients, the old notes will be accepted. He also said that retail petrol pumps will accept such notes till November 11, after which the stations will have to keep a register of such notes for some time.
The decisions came after a cabinet meeting.He said black money to the tune of Rs 1.25 lakh crore have been unearthed during last two-and-a-half years.
WHAT YOU CAN DO
- You can deposit old `500 and `1,000 notes in banks/post office accounts from November 10 till December 30, 2016, without any limit.
- There will be a limit on withdrawal from banks and post offices to `10,000 a day, and `20,000 a week. Limit will be raised in the coming days.
- You can exchange `500/`1,000 notes at any bank, post office or sub post office, showing ID proof, till November 24, 2016. The limit for this is `4,000.
- ATMs will not work on November 9 (Wednesday), and in some places on November 10.
- Withdrawals from ATMS will be limited to `2,000/day per card. This will be raised to `4,000 later
- New notes of `500 and `2,000 would be released on November 10
For 72 hours, the following services will accept 500/1,000 notes:
- Government hospitals
- Railway ticket booking counters
- Government buses and
- Ticket counters at airports
- Petrol, diesel and gas stations
- Cooperative stores
- Milk booths authorised by govt
- Crematoria and burial grounds