In a bid to tackle the menace of counterfeit currency and black money, the government is removing from circulation Rs 500 and Rs 1,000 notes beginning midnight, Prime Minister Narendra Modi announced Tuesday evening addressing the nation.
“Currency notes of Rs 1,000 and Rs 500 will be just paper with no value,” Modi said. He assured that citizens’ who are in possession of these notes can deposit them with a bank or post offices and get their money in other notes. “People can deposit notes of Rs 1,000 and Rs 500 in their banks from November 10 till December 30, 2016,” he affirmed. Also, citizens can continue to use notes of other denominations, he said.
Besides, the Reserve Bank of India will issue new note worth Rs 2,000 and Rs 500, he said. During the speech, the Prime Minister expressed confidence that the measure will help India battle corruption. He questioned the means through which terrorist establishments get funds, adding that circulation of huge amount of black money is resulting in a parallel economy.
The government wants to curb such transactions, Modi said. To address the problems this unexpected decision brings in, Modi said, petrol, diesel and CNG stations will accept Rs 500 and Rs 1,000 notes for the next 72 hours. Besides, transport booking counters for rail, road and airlines will accept old notes till midnight of November 11. Even hospitals will accept the two notes, Modi said.
The government has given 50 days for people to exchange the notes at banks and post offices. Those unable to deposit Rs 1,000 and Rs 500 notes by December 30 due to various reason will be allowed to can change them at banks till March 31, 2017 by furnishing relevant ID proof, Modi said.
