There was panic run on ATMs across the country as Prime Minister Narendra Modi on Tuesday late evening surprised the nation by declaring that Rs 500 and Rs 1,000 notes will not be legal tender from midnight.
The decision is said to be a new war on black money and terrorism.
Announcing the decision, the Prime Minister said that starting November 10, the Reserve Bank of India (RBI) will be releasing new notes of Rs 500 and Rs 2000 with new features, designs and dimensions.
The RBI will also limit the circulation of new notes with higher value so black money holders can not hoard the new notes.
Here is what you need to do with your Rs 500 and 1,000 notes:
1. Deposit Rs 500 and Rs 1,000 denomination notes in banks and post offices from November 10 to December 30 without any limit.
2. Exchange them from a bank or post office till November 24. Take identity card like Aadhaar card, PAN card, voter ID etc. when you go to exchange notes. The limit for exchange is Rs 4000.
3. After December 30, Rs 500 and Rs 1,000 notes can be deposited at the Reserve Bank of India branches with a declaration till March 31, 2017.
4. Rs 500 and Rs 1,000 rupee notes be accepted till November 11 at petrol pumps, CNG stations, government hospitals, Indian Railways, airline, government bus ticket booking counters, milk booths authorized by states, consumer co-operative stores run by states or central, crematoriums and burial grounds.
5. There are no restrictions on card payment, cheque, demand draft, electronic funds transfer.
6. Tourists can change the notes at airports. International airports will make arrangements for arriving passengers to exchange up to Rs 5,000 worth of old notes for the new legal tender.
Government will set up control room 22602944 to attend to queries regarding currency.
What you need to know
Banks will be closed on November 9. ATMS will not function on November 9 and in some places on November 10.
There is a limit on daily and weekly withdrawals from ATM. 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.