New Delhi: In order to put a check on black money, the government has demonetised Rs 500 and Rs 1,000 currency notes.
Prime Minister Narendra Modi made the declaration during his address to the nation on November 8, 2016 in which he said, “From midnight of November 8, 2016, Rs 500 and Rs 1,000 notes currently in use are no longer legal tender.”
Modi is of the opinion that corruption and black money need to be uprooted from the soil of India.
WHAT HAPPENS NOW:
On November 9, all banks will remain closed for any public work, whereas ATM kiosks will remain closed on November 9 and 10.
As per the declaration, new currency notes of 500 and 2,000 will be introduced in the monetary system November 10 onwards.
Between November 9 and 11, one can only withdraw amount up to Rs 2,000 from ATMs.
Government hospitals, railway stations, airports/airline companies, petrol/CNG stations and crematoriums have been directed to accept the Rs 500 and 1,000 notes till November 11.
Till November 24, the maximum amount that can be traded per week is capped at Rs 20,000.
December 30 is the deadline for the people to deposit their cash reserves in banks and post offices.
The Government has set no limit exchange at Reserve Bank of India (RBI) till March 31, 2017.