Rs 500, Rs 1000 notes to be invalid from midnight: Why PM Narendra Modi took the bold step

Keeping up to his promise of curbing the menace of black money, Prime Minister Narendra Modi announced that Rs 500 and Rs 1,000 currency notes will cease to be legal tender from midnight Tuesday.

Updated: Nov 08, 2016, 23:38 PM IST
Rs 500, Rs 1000 notes to be invalid from midnight: Why PM Narendra Modi took the bold step

New Delhi: Keeping up to his promise of curbing the menace of black money, Prime Minister Narendra Modi announced that Rs 500 and Rs 1,000 currency notes will cease to be legal tender from midnight Tuesday.

Here are few points which would explain why PM Modi took the drastic step, which stunned the nation:

- The decision is a surgical strike to tackle the menace of corruption and black money.

- PM Modi's new initiative would help in counterfeit currency funding terrorism.

- The latest move would help tackle terror financing, fake currency rackets, the money coming through hawala.

- The government also looks forward to control the issue of drugs with the surprising move.

What PM Modi said

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.

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

The Prime Minister said that the Rs 500 and Rs 1,000 denomination notes can be deposited in banks and post offices, and also exchanged across the bank counter by showing government-issued ID proof.

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.