NEW DELHI, Nov 8 - Taking the nation by surprise, Prime Minister Narendra Modi tonight announced demonetisation of Rs 1,000 and Rs 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 the people holding notes of Rs 500 and Rs 1,000 can deposit the same in their bank and post office accounts from November 10 till December 30. Those unable to deposit their notes of Rs 1,000 and Rs 500 by December 30 for some reason can change the notes till March 31, 2017 by furnishing ID proof, he said.
In his 40-minute address, first in Hindi and later in English, the Prime Minister said the notes of Rs 500 and Rs 1,000 �will not be legal tender from midnight tonight� and these will be �just worthless piece of paper�. However, he said all notes in lower denomination of Rs 100, Rs 50, Rs 20, Rs 10, Rs 5, Rs 2 and Re 1 and all coins will continue to be valid. He also announced that new notes of Rs 2,000 and Rs 500 will be introduced.
ATM withdrawals will be restricted to Rs 2,000 per day and withdrawals from bank accounts will be limited to Rs 10,000 a day and Rs 20,000 a week. Banks will remain closed tomorrow and ATMs will also not function tomorrow and day after, said Modi.
The Prime Minister said that corruption, fake currency and terrorism are festering wounds, holding back the economy. Black money to the tune of Rs 1.25 lakh crore were unearthed during the last two-and-a-half year, he said, adding, �from across the border, our enemies are running a racket in India through fake currency�.
Modi 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. � PTI