Currency of Rs. 500 and Rs. 1,000 will cease to be legal tender from midnight on Tuesday, Prime Minister Narendra Modi announced in a surprise address to the nation. He said the decision was taken to root out the menace of black money and corruption.
Here are the key points:
--> The government has declared Rs.500 and Rs. 1000 currency invalid from the midnight of Nov. 8
--> These notes can be deposited in banks between Nov. 10 and Dec. 30
--> Banks will also exchange these notes up to Rs.4000 till Nov. 24
--> Post Dec. 30, these notes will be accepted only by the Reserve Bank of India along with a written declaration
--> ATMs will not function for two days from the midnight of Nov. 8
--> Banks will be closed for public transactions tomorrow (Nov. 9)
--> For a few days, only up to Rs. 2000 a day can be withdrawn from ATMs; this will be raised to Rs. 4000 later
--> New Rs. 500 and Rs. 2000 notes to be released later by RBI
--> Exchange facility for upto Rs. 5000 for arriving and departing passengers who have Rs. 500 or Rs. 1,000 notes. Foreign tourists will be able to exchange foreign currency or old notes of not more than Rs. 5,000 into legal tender.
--> Cash withdrawal from a bank account over the counter will be restricted to Rs.10,000 subject to an overall limit of Rs. 20,000 in a week for the first fortnight, i.e., until the end of business hours on November 24, 2016.