MONEY
Taking the nation by surprise, Prime Minister Narendra Modi tonight announced demonetization of ₹1000 and ₹500 notes with effect from midnight, making these notes invalid in a major assault on black money, fake currency and corruption.
In his first televised address to the nation, Modi said people holding notes of ₹500 and ₹1000 can deposit the same in their bank and post office accounts from November 10.
Here are the important highlights:
In his 40-minute address, first in Hindi and later in English, the Prime Minister said the notes of ₹500 and ₹1000 "will not be legal tender from midnight tonight" and these will be "just worthless piece of paper."
However, he said that all notes in lower denomination of ₹100, ₹50, ₹20, ₹10, ₹5, ₹2 and ₹1 and all coins will continue to be valid.
He also announced that new notes of ₹2000 and ₹500 will be introduced.
ATM withdrawals will be restricted to ₹2000 per day and withdrawals from bank accounts will be limited to ₹10,000 a day and ₹20,000 a week. Banks will remain closed tomorrow and ATMs will also not function tomorrow and day after, Modi said.
He expressed confidence that the staff of banks and post offices will rise to the occasion to introduce the new order within the available time. He also expressed confidence that political parties, workers, social organisations and the media will go further than the government in making it a success.
"Banks will be closed tomorrow. It will cause some hardship to you....Let us ignore these hardships... In country's history, there comes a moment when people will want to participate in the nation-building and reconstruction. Very few such moments come in life," Modi said.