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Rs 500, Rs 1000 notes to be 'worthless piece of paper' from midnight: PM Modi

Prime Minister Narendra Modi on Tuesday announced that the currency notes of Rs 500 and Rs 1000 will not be considered a legal tender from midnight. Modi said this decision is taken to curb

India TV Business Desk, New Delhi [ Updated: November 08, 2016 21:47 IST ]
Image Source : DD PM Modi announced demonetisation of Rs 1000 and Rs 500 notes

Taking the nation by surprise, Prime Minister Narendra Modi on Tuesday announced that the currency notes of Rs 500 and Rs 1000 will not be considered a legal tender from midnight, in a major assault on black money, fake currency and corruption. 

The Prime Minister said that the decision was taken to curb menace of black money in the country and fight against the financing of terror activities. 

Announcing demonetisation of Rs 1000 and Rs 500 notes with effect from midnight, Modi said people holding notes of Rs 500 and Rs 1000 can deposit the same in their bank and post office accounts from November 10 till December 30.

India Tv - Rs 500, Rs 1000 notes cease to exist from midnight

Image Source : PMORs 500, Rs 1000 notes cease to exist from midnight

In his first televised address to the nation, the Prime Minister said the notes of Rs 500 and Rs 1000 "will not be legal tender from midnight tonight" and these will be "just worthless piece of paper."

India Tv - Black money to curbed through new currency

Image Source : PMOBlack money to curbed through new currency

In his 40-minute address, first in Hindi and later in English, he added that 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. 

India Tv - Corruption, black money and terror financing is targeted through this decision

Image Source : PMOCorruption, black money and terror financing is targeted through this decision

He also announced that new notes of Rs 2000 and Rs 500 will be introduced. 

India Tv - New Rs 500 note- Side 1

New Rs 500 note- Side 1

India Tv - New Rs 500 note- Side 2

New Rs 500 note- Side 2

ATM withdrawals will be restricted to Rs 2000 per day and withdrawals from bank accounts will be limited to Rs 10,000 a day and Rs 20,000 a week. 

India Tv - New note of Rs 2000- Side 1

Image Source : PMONew note of Rs 2000- Side 1

India Tv - Rs 500 note- Side 2

Rs 500 note- Side 2

Banks will remain closed tomorrow and ATMs will also not function tomorrow and day after, Modi said. 

He expressed confidence that the staff of banks and post offices will rise to the occasion to introduce the new order within the available time. 

India Tv - PM announced the decision in a address to the nation

Image Source : PMOPM announced the decision in a address to the nation

He also expressed confidence that political parties, workers, social organisations and the media will go further than the government in making it a success.

India Tv - New Rs 500 and Rs 2000 notes to be introduced

Image Source : PMONew Rs 500 and Rs 2000 notes to be introduced

Besides depositing money in bank accounts, the Rs 500 and Rs 1000 notes can also be exchanged with lower denomination currency notes at designated banks and post offices on production of valid government identity cards like PAN, Aadhaar and Election Card from November 10 to November 24 with a daily limit of Rs 4000. 

India Tv - The announcement took many by surprise

Image Source : PMOThe announcement took many by surprise

Those unable to deposit Rs 1000 and Rs 500 notes till December 30 this year can do so in designated RBI offices till March 31 next year after filling a declaration form along with proof and reasons, the Prime Minister said. 

Rs 500 and Rs 1000 notes will be valid for transactions related to booking of air tickets, railway bookings, government bus ticket counters and hospitals till the midnight of November 11 and 12. 

"Banks will be closed tomorrow. It will cause some hardship to you....Let us ignore these hardships... In country's history, there comes a moment when people will want to participate in the nation building and reconstruction. Very few such moments come in life," Modi said. 

While making the announcement, the Prime Minister said the sweeping measures were aimed at curbing the "disease" of corruption and black money which have taken deep root. 

"There is a need for a decisive war against the menace of corruption, black money and terrorism... Corruption, black money and terrorism are festering wounds which make the country hollow from within," he said, adding such activities hold back the nation's progress. 

Describing illegal financial activities as the "biggest blot", Modi said that despite several steps taken by his government over the last two-and-a-half years, India's global ranking on corruption had moved only to 76th position from 100th earlier. 

"This shows the extent of the web of corruption in the country. The disease of corruption is the domain of some veted people who are flourishing. Some people have misused their positions and benefitted. On the other hand, honest people are suffering," he said. 

He linked fake currency to terrorism and questioned how enemies of the countries are using such methods to harm India. 

"We have to get rid of this termite of corruption," he said. 

With PTI inputs)

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