All India | Edited by Vishal Menon | Updated: November 08, 2016 21:20 IST
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1,000 notes will be illegal from tonight, announced PM Modi .
- New Rs.
2000 notes from Nov 10, old ones illegal from midnight
- For 72 hours, government hospitals to accept old Rs.
- Citizens have 50 days from Nov 10 to return notes at banks, post offices
In a special and sudden address to the nation, Prime Minister Narendra Modi has announced that starting midnight, existing R
500 and R
1,000 notes can no longer be used for any transactions.
They must be deposited starting Thursday and through December 30 at post offices and banks, he said, describing the move as essential to fight "the disease of black money."
A proposal for new R
500 and R
2,000 notes has been cleared by the Reserve Bank of India.
"Your money will remain yours...you need have no worry on this account," PM Modi said, stressing that the new notes will be in limited supply at first and will then be increased.
For now, notes currently in use can be traded for upto R
4,000 till November 24, after which, the amount will be increased. Against notes that are deposited, withdrawals of upto R
10,000 a day or 20,000 a week will be permitted for now.
PM Modi, urging the country to bear with "temporary hardships" in the implementation of the new rule, said that banks will be closed to the public tomorrow and ATMs will not work in some places for the next 48 hours.
The PM said that though India is now "a global bright spot" with its fast-growing economy, corruption and black or undeclared money "are the biggest obstacles to our success."
"We are No 1 in rate of economic growth," he said, while adding that despite some progress, India still ranks at No 76 in world rankings for perception of corruption.
PM Modi said that since his government was elected, 1.25 lakh crores of black money "belonging to the corrupt" has been uncovered, through a series of measures including a voluntary disclosure scheme which has seen a good response.
The PM said that fake currency is also being employed "by the enemy across the border" to sponsor deadly attacks.