To check black money, PM Narendra Modi surprised the nation by announcing immediate ban on major Indian currency i.e. Rs. 500 and Rs. 1000, on Tuesday night.
Addressing the nation, he said that, notes of Rs. 500 and Rs. 1000 will not be legal tender from midnight tonight.
Although, this sudden historical announcement created little panic amongst citizens but government appealed countrymen to support this movement to root out corruption and black money from the country. Reducing difficulties for people, validity for Rs 500 and Rs 1000 notes will be continued in hospitals, government pharmacies, booking of air tickets, railways bookings and government bus ticket counters till November 11 and 12 midnight.
Also, all banks would be shut for public on Wednesday involving ATMs too which would not function on Wednesday and even on Thursday in some areas. Creating ease in transactional activities, government has issued certain guidelines like:
- In an urgency, notes can be exchanged at any bank and post offices, by showing valid ID proofs.
- From November 10 to 24, the limit for such exchange would be Rs 4,000. The limit will go up from November 25 till December 30.
- After December 30 deadline, the notes can be submitted at specified offices of the Reserve Bank of India up to March 31, 2017.
There was no restriction of any kind on non-cash payments by cheques, demand drafts, debit or credit cards and electronic fund transfer during this period, PM said.
He admitted these measures may cause “temporary hardships to honest citizens” but said “ordinary citizens are always ready to make sacrifices and face difficulties for the benefit of the nation”.
He hoped that all political parties, all governments, social services organizations, the media and indeed all sections of the society would help make the new currency system a success.