INR 500 and INR 1,000 currency demonitised: PM Modi

Indian Prime Minister Narendra Modi in an unpredicted address to the nation on Tuesday, said that the nation was doing away with INR 500 and INR 1,000 notes in an effort to sieve out corruption, black money and in turn poverty and terrorism. PM Modi said that the government believes the time has come to ‘take a strong decision’ on pursue these problems, suggesting that fake notes from across the border were being used to fund terrorism in the nation.

How this will affect:

From midnight of November 8th INR 500 and INR 1,000 notes will be no longer be legal tender. Other currency notes  INR 10, INR 20, INR 50 and INR 100 are still valid as are all coins. And the all cashless transactions such as cards, cheques and demand drafts will continue as usual. ATM’s across the nation will be closed on November 9th and they will not function in parts of the country on November 10th, PM said. Banks will remain closed on November 9th.

How  to exchange your notes:

The currencies of INR 500 and INR 1,000 notes can be submitted to post offices and banks from November 10th till December 30 with an valid ID card such as a PAN card, passport or Aadhaar card. And those who are being unable to exchange their notes by December 30th will be allowed to declare them with the Reserve Bank of India (RBI) till March 31th. There will be a spile of INR 20,000 on the amount of money that can be exchanged in a week and INR 10,000 in a day. In the airports tourists can change these notes.

The exceptions:

Prime Minister said there been made at places of particular importance where the INR 500 and INR 1,000 notes will be accepted for an additional 72 hours i.e till midnight on November 11th. This includes hospitals, railway ticket booking counters, government bus stands, and airports.

What's next Denominations:

The New notes of INR 2,000 and INR 500 will be circulated soon, PM Modi said and these will have limited circulation.

In the past:

Indian governments have demonetised currency notes in the past as well. According to the RBI INR 1,000 and INR 10,000 banknotes were demonetised in January 1946. Banknotes for INR 1,000, INR 5,000 and INR 10,000 were been re-introduced in 1954. INR 1,000, INR 5,000 and INR 10,000 were demonetised again in January 1978.

And the New: