From Wednesday, 500, 1,000 rupee notes will be illegal, announced PM Modi .

Highlights New Rs 500, Rs 2000 notes from Nov 10, old ones illegal from midnight For 72 hours, government hospitals to accept old Rs 500, Rs 1000 notes Citizens have 50 days from Nov 10 to return notes at banks, post offices

The new Rs 500 and 2000 notes will be issued on November 10

In a sudden address to the nation, Prime Minister Narendra Modi has announced that starting midnight, existing Rs. 500 and Rs. 1,000 notes can no longer be used for any transactions.They must be deposited, starting Thursday and through December 30 , at post offices and banks, he said, describing the move as essential to fight "the disease of black money."New Rs. 500 and Rs. 2,000 notes , cleared by the Reserve Bank of India , will be introduced on Thursday."Your money will remain yours...you need have no worry on this account," PM Modi said, stressing that the new notes will be in limited supply at first and will then be increased.He spoke first in Hindi and then in English to share the details of the new policy.For now, notes currently in use can be traded for upto Rs. 4,000 till November 24 and for larger amounts thereafter. Against notes that are deposited, withdrawals of upto Rs. 10,000 a day or 20,000 a week will be permitted for now.PM Modi, urging the country to bear with "temporary hardships" in the implementation of the new rule, said that banks will be closed to the public tomorrow and ATMs will not work in some places for the next 48 hours and withdrawals will be limited till Friday to Rs 2,000.The PM said that though India is now "a global bright spot" with its fast-growing economy, corruption and black or undeclared money "are the biggest obstacles to our success.""We are No 1 in rate of economic growth," he said, while adding that despite some progress, India still ranks at No 76 in world rankings for perception of corruption.PM Modi said that since his government was elected, 1.25 lakh crores of black money "belonging to the corrupt" has been uncovered, through a series of measures including a voluntary disclosure scheme which has seen a good response. The PM said that fake Rs 500 notes are employed "by the enemy across the border" to sponsor deadly attacks.

Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.</s>Image copyright AFP

Indian Prime Minister Narendra Modi has announced that the 500 ($7.60) and 1,000 rupee banknotes will be withdrawn from the financial system overnight.

The surprise move, announced on Tuesday evening, is part of a crackdown on corruption and illegal cash holdings.

Banks will be closed on Wednesday and ATM machines will not be working.

India is overwhelmingly a cash economy. New 500 and 2,000 rupee denomination notes will be issued to replace those removed from circulation.

"Black money and corruption are the biggest obstacles in eradicating poverty," Mr Modi said.

People will be able to exchange their old notes for new ones at banks over the next 50 days but they will no longer be legal tender.

The announcement prompted people across the country to rush to ATMs that offer 100 rupee notes in an attempt not to be left without cash over the next few days.

Media playback is unsupported on your device Media caption One woman says the unexpected change will make it tricky for her to pay to get to work

The move is designed to lock out money that is unaccounted for - known as "black money " - which may have been acquired corruptly, or be being withheld from the tax authorities.

Finance Secretary Shaktikant Das warned people with large stashes of hidden cash that banks would closely monitor the exchange of old notes for new ones.

Analysis: Simon Jack, BBC business editor in Delhi

Mr Modi has set his stall out as a modernising, anti-corruption crusade.

Scrapping notes that are very, very common is his biggest offensive yet. Most transactions in daily life are in cash and 45% of those are in notes in denominations of 500 rupees and over.

Not a single news organisation seemed to know this was coming. I saw one news anchor produce a wad of 500s from his own pocket on air wondering whether these were now just pieces of paper - and also wondering if the bars of Delhi would see a sudden surge of business.

It has caught the country completely off guard. There will also be limits on cash point withdrawals over the next couple of weeks.

Read more from Simon here

How long have people got to change their old notes?

The 500 and 1,000 rupee notes are the highest denomination notes in the country and are extremely common in India. Airports, railway stations and hospitals will only accept them until 11 November.

People will be able to exchange their money at banks between 10 November and 30 December.

Mr Modi's ruling Bharatiya Janata Party came into power in 2014 promising to bring billions of dollars of black market money into the country's financial system. His government is half way through its term of office.

The announcement comes just over a month after the government raised nearly $10bn through a tax amnesty for Indians to declare hidden income and assets.

How much 'black money' is there in circulation?

The BBC's Justin Rowlatt in Delhi says the issue of "black money" is a huge problem in India and the latest move is the prime minister's big demonstration that he is taking it seriously.

The idea is to lock out money that is unaccounted for and make it visible for tax purposes - banks will be happy to exchange a few thousand rupees, but will be asking questions of those who turn up with hundreds of thousands or millions in currency.

There are no precise figures available but experts say the government's move could be "a very powerful measure" to curb "black money". IIFL Holdings Ltd Chairman Nirmal Jain told Bloomberg that it will have "a deflationary impact in general and more specifically on real estate prices - making homes affordable".

Is there a limit on the amount an individual or household can cash in?

It seems not. An individual can put as much as he or she likes into the bank - but withdrawals are limited so the banking system may end up being flooded with cash.

Image copyright Indian government Image caption The government has issued flyers explaining the changes

Government guidelines say it is possible to exchange 4,000 rupees - but it is not clear if this is per day or in total.

Critics say the new rules may make it especially difficult for people who choose to keep their cash at home rather than in a bank account and for people with large rupee cash reserves who live abroad.

If there is a legitimate explanation for the cash, the authorities say, it will be possible to exchange it.

Cash points will close on Wednesday and in some places also on Thursday - a development that it seems may cause cash blockages or queues at ATMs.

Is this risky for the government?

It's a bold step because many people who voted for Mr Modi were small traders who overwhelmingly did their business in cash.

Our correspondent says these are people who probably do have a few hundred thousand rupees - a few thousand dollars - stored under their beds and will have problems when they turn up in the bank on Thursday trying to change their money.

The move leaves a lot of uncertainty about the Indian economy at least in the short term.</s>Indian Prime Minister Narendra Modi on Tuesday announced that 500 and 1,000 rupee banknotes would be withdrawn from circulation at midnight, saying it was part of a crackdown on rampant corruption and counterfeit currency.

The surprise step appears designed to bring billions of dollars worth of cash in unaccounted wealth into the mainstream economy, as well as hit the finances of Islamist militants who target India and are suspected of using fake 500 rupee notes to fund operations.

“Black money and corruption are the biggest obstacles in eradicating poverty,” Modi said in an address to the nation.

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

Modi’s ruling Bharatiya Janata Party came into power in 2014 promising to bring billions of dollars of black market money into the regular financial system. Critics said it had failed to deliver on that promise.

Tuesday’s announcement comes just over a month after the government raised nearly $10 billion through a tax amnesty for Indians to declare hidden income and assets.

A report by Washington-based think-tank Global Financial Integrity estimated that India lost $344 billion in illicit fund outflows between 2002 and 2011.

Modi also said militants operating against India were using fake versions of the 500 rupee note, worth about $7.50 at current exchange rates.

“Terrorism is a frightening thing … But have you ever thought about how these terrorists get their money? Enemies from across the border have run their operations using fake currency notes. This has been going on for years,” Modi said.

India accuses its neighbor Pakistan of harboring militants who have launched attacks on its troops, particularly in the disputed Himalayan region of Kashmir which both countries claim. Pakistan denies the accusations.

Some officials and experts said Tuesday’s move was the biggest in decades aimed at fighting graft.

“It is like a surgical strike on black money,” said Revenue Secretary Hasmukh Adhia.</s>The world's fastest growing economy has woken up to a countrywide bank shutdown.

Banks and ATMs all over India were closed on Wednesday, following Prime Minister Narendra Modi's shock decision a day earlier to withdraw 500 and 1,000 rupee notes — the country's two largest denominations — from circulation at midnight.

Indians use cash for most transactions, and the measures were making it hard for them to conduct business or purchase everyday items.

"Everyone is facing a difficulty right now," said Pravin, an Uber driver. He was searching for a bank or store that would exchange his three 1,000 and four 500 rupee notes for smaller bills.

"If I don't get money, I won't work today," he said.

The currency move is an attempt to combat corruption and recover "black money," billions in illegal funds often stashed overseas by tax evaders.

For now, it means an incredible 23 billion notes (more than 80% of those in circulation) are now just "pieces of paper," as Modi put it during his speech Tuesday. They will either have to be deposited or exchanged.

That will have to wait till banks reopen on Nov.10, which is when the Reserve Bank of India says it will roll out new higher security 500 and 2,000 rupee notes. The shutdown should allow banks to stock up on the new notes, although ATMs will only have them a day later.

Many were confused by the announcement and the bank closure, even if they recognized Modi's decision could be good for the country.

"It's very difficult, I need to buy food for my kids," said Vijay Kumar, a security guard and father of three. "I need to change these notes, but we don't know what to do. Not everyone has a TV in their homes."

The news went down badly on India's financial markets, which also suffered from the global sell-off triggered by Donald Trump's surprise victory in the U.S. presidential election. The main SENSEX index fell more than 5%.

Modi also faced criticism from P Chidambaram, the country's former finance minister and a member of the opposition Congress Party. In a Wednesday afternoon press conference, Chidambaram expressed "support" for the removal of black money, but questioned the effectiveness of the currency ban.

"Introduction of a new series of notes is estimated to cost between [$2.2 billion] and [$3 billion]," he said. "The economic gains should be equal to that amount."

But Arun Jaitley, the current finance minister, downplayed that figure, calling it "highly exaggerated."

"Once the entire currency is printed the cost would be known," he said.</s>NEW DELHI – India’s highest-denomination currency notes are being withdrawn immediately from circulation, the country’s prime minister said Tuesday night, a surprise announcement designed to fight corruption and target people who have stashed away immense amounts of cash.

As of midnight Tuesday, 500- and 1,000-rupee notes, worth about $7.50 and $15, will have no cash value, Prime Minister Narendra Modi said in a televised address.

“A few people are spreading corruption for their own benefit,” he said in the speech. “There is a time when you realize that you have to bring some change in society, and this is our time.”

People holding the discontinued notes will be able to deposit them in bank and post office savings accounts before the end of the year – but anyone making large deposits will find themselves the target of Indian tax authorities. The government will shortly be issuing new 500- and 2,000-rupee notes, the prime minister said.

India’s economy – and its tax base – has long been hobbled by a culture of what is known here as “black money,” with business people using cash to avoid paying taxes. Raids on corrupt politicians and businesses regularly turn up people holding millions of dollars’ worth of rupees, with cash sometimes filling dozens of boxes.

The government has been urging people over the past year to declare the money they are holding in cash.

Across the country Tuesday night, people rushed to bank ATM machines where money could be withdrawn in 100-rupee notes, trying to avoid being caught without cash over the next few days.

Anuj Mathur, a banker, was among more than two dozen people lined up outside a south New Delhi ATM machine at about 10 p.m. Tuesday. It will be an inconvenience for the next few days, until the new notes are in circulation, he said, but he applauded the government’s decision.

“It’s a good measure,” he said. “This will clean up the system.

The sudden change, though, will be difficult for India’s millions of poor people, many of whom don’t have bank accounts and who may not have cash available in lower-currency notes to keep themselves financially afloat for the next few days.

“It will cause some hardship to you,” Modi said in his speech. “Let us ignore those hardships.”

In an indirect reference to rival Pakistan, Modi also accused a neighboring country of circulating fake Indian currency to damage the Indian economy.</s>The world's fastest growing economy has woken up to a countrywide bank shutdown.

Banks and ATMs all over India were closed on Wednesday, following Prime Minister Narendra Modi's shock decision a day earlier to withdraw 500 and 1,000 rupee notes — the country's two largest denominations — from circulation at midnight.

Indians use cash for most transactions, and the measures were making it hard for them to conduct business or purchase everyday items.

"Everyone is facing a difficulty right now," said Pravin, an Uber driver. He was searching for a bank or store that would exchange his three 1,000 and four 500 rupee notes for smaller bills.

"If I don't get money, I won't work today," he said.

The currency move is an attempt to combat corruption and recover "black money," billions in illegal funds often stashed overseas by tax evaders.

For now, it means an incredible 23 billion notes (more than 80% of those in circulation) are now just "pieces of paper," as Modi put it during his speech Tuesday. They will either have to be deposited or exchanged.

That will have to wait till banks reopen on Nov.10, which is when the Reserve Bank of India says it will roll out new higher security 500 and 2,000 rupee notes. The shutdown should allow banks to stock up on the new notes, although ATMs will only have them a day later.

Many were confused by the announcement and the bank closure, even if they recognized Modi's decision could be good for the country.

"It's very difficult, I need to buy food for my kids," said Vijay Kumar, a security guard and father of three. "I need to change these notes, but we don't know what to do. Not everyone has a TV in their homes."

The news went down badly on India's financial markets, which also suffered from the global sell-off triggered by Donald Trump's surprise victory in the U.S. presidential election. The main SENSEX index fell more than 5%.</s>India has discontinued its two largest rupee notes in a shocking move against corruption.

Notes worth 500 and 1,000 rupees will be invalid starting at midnight local time, Prime Minister Narendra Modi announced during a televised address to the nation.

The unexpected move is designed to fight against corruption and money laundering, Modi said, calling them "diseases" and "obstacles" to the country's economic success.

Modi said that policy changes had largely failed to root out corruption. Two years ago, he said, India was ranked 100th in terms of global corruption perception, and the country has only improved to 76th.

The idea is that Indians who have stockpiled undeclared income will now be forced to come out of the shadows.

"This step will strengthen the hands of the common man in the fight against corruption, black money and fake currency," said Modi, who leads the ruling Bharatiya Janata Party.

But the ban could also spark a mad scramble as ordinary Indians seek to exchange or deposit their cash. Modi said citizens have 50 days to deposit at banks and post offices. Hospitals will be allowed to accept the banned notes for another three days, until Nov. 11.

That transition will not be an easy task. The Reserve Bank of India (RBI) estimates that there are 16.5 billion 500 rupee notes and 6.7 billion 1000 rupee notes currently in circulation. ATMs will be shut on Nov. 9 and 10 to help implement the change.

The central bank is also preparing to issue a new series of 500 and 2,000 rupee notes, which are slated to enter circulation by Nov. 10.

Until then, the largest legal bill in circulation will be the 100 rupee note, which is worth only $1.50.

In a country where taxi drivers and shopkeepers are already reluctant to part with small bills, the sudden policy change could complicate business transactions in the short term.

Indian social media users widely praised the decision, calling it a "bold move." There were also, inevitably, plenty of jokes.

India is believed to have lost out on over $100 billion in uncollected tax, a large percentage of which is illegally stashed offshore.

Only 2% of Indians pay any income tax at all because most people work in the economy's informal sector that includes jobs such as construction laborers and road side food sellers.

Modi also touted the move as an anti-terrorism measure, saying that "enemies across the border have run their operations using fake currency notes," a reference to neighboring Pakistan.

"The 500 and 1,000 rupee notes hoarded by anti-national and anti-social elements will become just worthless pieces of paper," he said.</s>Mr. Modi had called on President Mukherjee earlier in the evening to inform him of the decision taken by his government.

President Pranab Mukherjee on Tuesday welcomed what he termed the “bold step” of the Union government “which will help unearth unaccounted money and counterfeit currency.”

He was responding to Prime Minister Narendra Modi’s surprise announcement demonetising notes of Rs. 500 and Rs. 1,000 denomination notes.

Mr. Modi had called on President Mukherjee earlier in the evening to inform him of the decision taken by his government.

“President Mukherjee welcomed the bold step of the Government of India which will help unearth unaccounted money & counterfeit currency,” said a statement from Rashtrapati Bhavan.

He called upon people not to panic and follow government guidelines for exchange of Rs. 1,000/500 notes. He also reminded people that all currency notes below Rs. 500 would continue as legal tender.</s>Prime Minister Narendra Modi’s move to curb unaccounted cash, or black money, circulating in the Indian economy by withdrawing the highest-value currency notes of Rs.500 and Rs.1,000 as legal tender within three-odd hours of the announcement, is a bold one. He invoked provocative imagery to explain the measure — of corrupt officials stashing kilos of ill-gained cash under their mattresses, and such illicit black money fuelling inflation as well as terrorism. He pointed out how difficult it is for honest taxpayers to buy a house as the real estate sector seldom operates without a cash component, some of which finds its way to political funding. The increase in the circulation of these notes in the past five years has been disproportionate to the economy’s growth. The introduction of new Rs.500 and Rs.2,000 notes, the government argues, would not only check counterfeit currency, a problem that has assumed serious dimensions, but also purge India’s economy of the black wealth amassed in the form of high-value notes. Any decision like this needs to be sudden, and it is not surprising that it has caused hardship as people scramble to get notes of smaller denomination for daily expenditure. The only defence for this is that the larger public purpose outweighs the immediate difficulties.

Having promised during the 2014 election campaign to bring back black money worth lakhs of crores supposedly stashed abroad, the NDA government has been under pressure to do something dramatic. The two amnesty schemes it launched over the past year, including one for foreign assets, didn’t yield anything near the 23.2 per cent of GDP that the World Bank had estimated India’s shadow economy to be in 2007. Today that would be nearly $479 billion in unaccounted wealth, according to rating agency Crisil. While there will be pain and confusion in the short term for common people and the economy, a disruptive measure was perhaps the only way to shake up the system to a new compliance normal. But the Centre must ensure that no poor person is saddled with old, useless notes due to the lack of official identity documents or a bank account, and avoid putting to disadvantage older citizens unable to visit a bank repeatedly to exchange high-value notes. It should find ways to check black money parked in benami properties (possibly through a digital land and realty inventory) and gold. There must also be administrative and electoral reforms to advance digital payments and eliminate the prospect of the new currency regime spawning the ghost economy afresh.</s>Prime Minister Narendra Modi on Tuesday night announced demonetisation of Rs. 1000 and Rs. 500 notes with effect from midnight, making these notes invalid in a major assault on black money, fake currency and corruption.

Here is the full text of his speech

I hope you ended the festive season of Diwali with joy and new hope. Today, I will be speaking to you about some critical issues and important decisions. Today I want to make a special request to all of you. You may recall the economic situation in May 2014 when you entrusted us with an onerous responsibility. In the context of BRICS, it was being said that the “I” in BRICS was shaky. Since then, we had two years of severe drought. Yet, in the last two and a half years with the support of 125 crore Indians, India has become the “bright spot” in the global economy. It is not just we who are saying this; it is being stated by the International Monetary Fund and the World Bank.

In this effort for development, our motto has been ‘Sab Ka Saath Sab Ka Vikas’: We are with all citizens and for development of all citizens. This Government is dedicated to the poor. It will remain dedicated to them. In our fight against poverty, our main thrust has been to empower the poor, and make them active participants in the benefits of economic progress.

the Stand-up India programme for Dalits, Adivasis and Women,

the Pradhan Mantri Ujjwala Scheme for gas connections in the homes of the poor,

the Pradhan Mantri Fasal Beema Yojana and Pradhan Mantri Krishi Sinchai Yojana to protect the income of farmers,

the Soil Health Card Scheme to ensure the best possible yield from farmers’ fields,

and the e-NAM National Market Place scheme to ensure farmers get the right price for their produce

—these are all reflections of this approach.

In the past decades, the spectre of corruption and black money has grown. It has weakened the effort to remove poverty. On the one hand, we are now No. 1 in the rate of economic growth. But on the other hand, we were ranked close to one hundred in the global corruption perceptions ranking two years back. In spite of many steps taken, we have only been able to reach a ranking of seventy-six now. Of course, there is improvement. This shows the extent to which corruption and black money have spread their tentacles.

The evil of corruption has been spread by certain sections of society for their selfish interest. They have ignored the poor and cornered benefits. Some people have misused their office for personal gain. On the other hand, honest people have fought against this evil. Crores of common men and women have lived lives of integrity. We hear about poor auto-rickshaw drivers returning gold ornaments left in the vehicles to their rightful owners. We hear about taxi drivers who take pains to locate the owners of cell phones left behind. We hear of vegetable vendors who return excess money given by customers.

There comes a time in the history of a country’s development when a need is felt for a strong and decisive step. For years, this country has felt that corruption, black money and terrorism are festering sores, holding us back in the race towards development.

Terrorism is a frightening threat. So many have lost their lives because of it. But have you ever thought about how these terrorists get their money? Enemies from across the border run their operations using fake currency notes. This has been going on for years. Many times, those using fake five hundred and thousand rupee notes have been caught and many such notes have been seized.

On the one hand is the problem of terrorism; on the other is the challenge posed by corruption and black money. We began our battle against corruption by setting up an SIT headed by a retired Supreme Court judge, immediately upon taking office. Since then
• a law was passed in 2015 for disclosure of foreign black money;
• agreements with many countries, including the USA, have been made to add provisions for sharing banking information;
• a strict law has come into force from August 2016 to curb benami transactions, which are used to deploy black money earned through corruption;
• a scheme was introduced for declaring black money after paying a stiff penalty;

Through all these efforts, in the last two and a half years, we have brought into the open nearly 1 lakh 25 thousand crore rupees of black money belonging to the corrupt. Honest citizens want this fight against corruption, black money, benami property, terrorism and counterfeiting to continue. Which honest citizen would not be pained by reports of crores worth of currency notes stashed under the beds of government officers? Or by reports of cash found in gunny bags?

The magnitude of cash in circulation is directly linked to the level of corruption. Inflation becomes worse through the deployment of cash earned in corrupt ways. The poor have to bear the brunt of this. It has a direct effect on the purchasing power of the poor and the middle class. You may yourself have experienced when buying land or a house, that apart from the amount paid by cheque, a large amount is demanded in cash. This creates problems for an honest person in buying property. The misuse of cash has led to artificial increase in the cost of goods and services like houses, land, higher education, health care and so on.

High circulation of cash also strengthens the hawala trade which is directly connected to black money and illegal trade in weapons. Debate on the role of black money in elections has been going on for years.

To break the grip of corruption and black money, we have decided that the five hundred rupee and thousand rupee currency notes presently in use will no longer be legal tender from midnight tonight, that is 8th November 2016. This means that these notes will not be acceptable for transactions from midnight onwards. The five hundred and thousand rupee notes hoarded by anti-national and anti-social elements will become just worthless pieces of paper. The rights and the interests of honest, hard-working people will be fully protected. Let me assure you that notes of one hundred, fifty, twenty, ten, five, two and one rupee and all coins will remain legal tender and will not be affected.

This step will strengthen the hands of the common man in the fight against corruption, black money and fake currency. To minimise the difficulties of citizens in the coming days, several steps are being taken.

1. Persons holding old notes of five hundred or one thousand rupees can deposit these notes in their bank or post office accounts from 10th November till close of banking hours on 30th December 2016 without any limit.

2. Thus you will have 50 days to deposit your notes and there is no need for panic.

3. Your money will remain yours. You need have no worry on this point.

4. After depositing your money in your account, you can draw it when you need it.

5. Keeping in mind the supply of new notes, in the first few days, there will be a limit of ten thousand rupees per day and twenty thousand rupees per week. This limit will be increased in the coming days.

6. Apart from depositing your notes in your bank account, another facility will also be there.

7. For your immediate needs, you can go to any bank, head post office or sub post office, show your identity proof like Aadhaar card, voter card, ration card, passport, PAN card or other approved proofs, and exchange your old five hundred or thousand rupee notes for new notes.

8. From 10th November till 24th November the limit for such exchange will be four thousand rupees. From 25th November till 30th December, the limit will be increased.

9. There may be some who, for some reason, are not able to deposit their old five hundred or thousand rupee notes by 30th December 2016.

10. They can go to specified offices of the Reserve Bank of India up to 31st March 2017 and deposit the notes after submitting a declaration form.

11. On 9th November and in some places on 10th November also, ATMs will not work. In the first few days, there will be a limit of two thousand rupees per day per card.

12. This will be raised to four thousand rupees later.

13. Five hundred and thousand rupee notes will not be legal tender from midnight. However for humanitarian reasons, to reduce hardship to citizens, some special arrangements have been made for the first 72 hours, that is till midnight on 11th November.

14. During this period, government hospitals will continue to accept five hundred and thousand rupee notes for payment.

15. This is for the benefit of those families whose members may be unwell.

16. Pharmacies in government hospitals will also accept these notes for buying medicines with doctors’ prescription.

17. For 72 hours, till midnight on 11th November, railway ticket booking counters, ticket counters of government buses and airline ticket counters at airports will accept the old notes for purchase of tickets. This is for the benefit of those who may be travelling at this time.

18. For 72 hours, five hundred and thousand rupee notes will be accepted also at

These outlets will have to keep proper records of stock and collections.

19. Arrangements will be made at international airports for arriving and departing passengers who have five hundred or thousand rupee notes of not more than five thousand rupees, to exchange them for new notes or other legal tender.

20. Foreign tourists will be able to exchange foreign currency or old notes of not more than Rs 5000 into legal tender.

21. One more thing I would like to mention, I want to stress that in this entire exercise, there is no restriction of any kind on non-cash payments by cheques, demand drafts, debit or credit cards and electronic fund transfer.

In spite of all these efforts there may be temporary hardships to be faced by honest citizens. Experience tells us that ordinary citizens are always ready to make sacrifices and face difficulties for the benefit of the nation. I see that spirit when a poor widow gives up her LPG subsidy, when a retired school teacher contributes his pension to the Swacch Bharat mission, when a poor Adivasi mother sells her goats to build a toilet, when a soldier contributes 57 thousand rupees to make his village clean. I have seen that the ordinary citizen has the determination to do anything, if it will lead to the country’s progress.

So, in this fight against corruption, black money, fake notes and terrorism, in this movement for purifying our country, will our people not put up with difficulties for some days? I have full confidence that every citizen will stand up and participate in this ‘mahayagna’. My dear countrymen, after the festivity of Diwali, now join the nation and extend your hand in this Imandaari ka Utsav, this Pramanikta ka Parv, this celebration of integrity, this festival of credibility.

I am sure that all political parties, all governments, social services organizations, the media and indeed all sections of the society will take part in this with enthusiasm and make it a success.

Secrecy was essential for this action. It is only now, as I speak to you, that various agencies like banks, post offices, railways, hospitals and others are being informed. The Reserve Bank, banks and post offices have to make many arrangements at very short notice. Obviously, time will be needed. Therefore all banks will be closed to the public on 9th November. This may cause some hardship to you. I have full faith that banks and post offices will successfully carry out this great task of national importance. However, I appeal to all of you to help the banks and post offices to meet this challenge with poise and determination.

From time to time, based on currency needs, the Reserve Bank with the approval of the Central Government brings out new notes of higher value. In 2014, the Reserve Bank sent a recommendation for issue of five thousand and ten thousand rupee notes. After careful consideration, this was not accepted. Now as part of this exercise, RBI’s recommendation to issue two thousand rupee notes has been accepted. New notes of five hundred rupees and two thousand rupees, with completely new design will be introduced. Based on past experience, the Reserve Bank will hereafter make arrangements to limit the share of high denomination notes in the total currency in circulation.

In a country’s history, there come moments when every person feels he too should be part of that moment, that he too should make his contribution to the country’s progress. Such moments come but rarely. Now, we again have an opportunity where every citizen can join this mahayajna against the ills of corruption, black money and fake notes. The more help you give in this campaign, the more successful it will be.

It has been a matter of concern for all of us that corruption and black money tend to be accepted as part of life. This type of thinking has afflicted our politics, our administration and our society like an infestation of termites. None of our public institutions is free from these termites.

Time and again, I have seen that when the average citizen has to choose between accepting dishonesty and bearing inconvenience, they always choose to put up with inconvenience. They will not support dishonesty.

Once again, let me invite you to make your contribution to this grand sacrifice for cleansing our country, just as you cleaned up your surroundings during Diwali.

Let us ignore the temporary hardship

Let us join this festival of integrity and credibility

Let us enable coming generations to live their lives with dignity

Let us fight corruption and black money

Let us ensure that the nation’s wealth benefits the poor

Let us enable law-abiding citizens to get their due share.

I am confident in the 125 crore people of India and I am sure country will get success.

Thank you very much. Thanks a lot.
India abolishes larger banknotes in a bold and unexpected move to curb circulation of counterfeit notes and to fight black money.