To curb flow of black money, govt scraps Rs 500 and Rs 1,000 currency notes

As part of his government’s fight against black money, Prime Minister Narendra Modi on Tuesday announced that Rs 500 and Rs 1,000 currency notes would no longer be printed.

For the next 50 days, up until 30 December 2016, you could deposit your old currency notes of Rs 500 and Rs 1,000 denominations in post offices and banks. You would need to carry your Aadhaar card and PAN card for exchange of these notes.

The move was aimed to clamp down on rampant corruption, Modi said.

After the said date, the currency notes of Rs 1,000 and Rs 500 would be only paper, with no value, said the PM in his address to the nation. They would cease to be legal tender from the midnight of November 9.

There would be no change in any other form of currency exchange, whether cheque, demand draft or payment via credit and debit cards etc, said Modi.

The surprise step India Business Newsappears to be designed to bring billions of dollars worth of cash in unaccounted wealth into the mainstream economy. “Black money and corruption are the biggest obstacles in eradicating poverty,” Modi said in his address to the nation.

New 500 and 2,000 rupee denomination notes will be issued later, he added.

ATMs would not work tomorrow and all banks will stay shut for public work for the day.

If you are unable to deposit your Rs 1,000 and Rs 500 notes by December 30 for some reason, you could exchange the notes until March 31, 2017, by furnishing your ID proof.

The prime minister also announced that Rs 2,000 denomination would be introduced.

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