In a major sweep to end corruption in India, Prime Minister Narendra Modi has announced that starting midnight, the existing Rs.500 and Rs 1,000 notes can no longer be used for transactions.
People possessing these notes are required to deposit them at post offices and banks by end-December.
The Reserve Bank of India has cleared the proposal for the new Rs.500 and Rs1,000 notes.
In order to get the new system rolling, banks will be closed to public tomorrow. So also some ATMs may not work, the Prime Minister cautioned.
ATM withdrawal is limited to Rs.10,000 per day post November 11, but during the initial few days it will be just Rs2,000.
However, old notes will be accepted in hospitals, at petrol stations and for travel bookings until November 11, so as not to limit inconvenience to the public.
Also, there are no changes in online transactions – card, cheque or any other plastic money transactions.
And new notes of Rs.500 and Rs.2,000 would bring in circulation, from March 31, 2017.