Banks and ATMs shut after India pulls 500 and 1,000 rupee notes in shock move to fight crime
New 500 and 2,000 rupee notes will be issued with new designs
India will issue new bank notes Thursday after Prime Minister Narendra Modi ordered the withdrawal of 500 and 1,000 rupee notes from circulation in a shock announcement designed to tackle widespread corruption and tax evasion.
Modi said that while people could exchange their old notes for new bills at banks or post offices until the end of the year, or deposit them in their accounts, they would no longer be legal tender.
“To break the grip of corruption and black money, we have decided that the 500 and 1,000 rupee currency notes presently in use will no longer be legal tender from midnight that is 8 November, 2016,” he said in a surprise televised address to the nation on Tuesday.
“This means that these notes will not be acceptable for transaction from midnight onwards.”
Modi emphasised that citizens who had 500 and 1,000 rupee notes need not panic, as cash could be deposited at banks or post offices until the end of 2016.
“These steps are a part of our battle against corruption, black money and counterfeit notes. The ordinary citizen who is struggling, will be strengthened… There is no need for you to rush to the bank tomorrow, you have 50 days.”