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India discontinues 500 and 1000 Rupee Note

Indian Prime Minister Narendra Modi addressed the country tonight and announced government’s decision to discontinue notes of Rupee 500 and 1000 from midnight. The government’s decision means that 500 and 1000 rupee notes in India will now become invalid.

“These notes are just papers from tomorrow,” says the prime minister.

Narendra Modi addressed the nation through Doordarshan, India’s state television.

Prime Minister however said that citizens have 50 days from Nov 10 to return notes at banks, and post offices. ATMs will not work on November 9 and in some places on November 10. However, government hospitals will still accept old Rs. 500 and 1000 notes till 11 November midnight. These notes will also be accepted till November 11 at petrol pumps and retail outlets however the staff will have to keep every single entry of cash transaction with 500 and 1000 notes. Crematoriums and cemeteries will also be allowed to transact 500 and 1000 notes till November 11. There will be no change in any other form of currency exchange be it cheque, DD, payment via credit or debit cards etc.

Narendra Modi delivered his speech first in Hindi and then English.

The main highlights of the Prime Minister’s Speech are:

– When you elected this government in 2014, world was talking about India being shaky economically. But India is now an economic star – this is what IMF and World Bank are saying.

– Sab ka sarkaar, sab ka vikas – governance and progress for all is our motto. We are focused on empowerment of the poor. A series of schemes we have introduced all aim at this. This is a government for our farmers.

– Corruption and black money are diseases rooted in this country, they are obstacles to our success.

– We are among fastest-growing economies, but we also rank so high in global corruption rankings.

– Terror strikes at the innocent. Who funds these terrorists? Across the border, our enemy uses fake currency and dodgy funds to sponsor terror – this has been proven repeatedly.

– Our measures to check black money are paying off. A voluntary disclosure scheme for undeclared money saw a good response. A Special Investigating Team is making progress to identify who has sent money abroad.

– 1.25 lakh crores of black money has been recovered.

– We need to take a new solid step to fight black money. From now on, Rs. 500 and Rs. 1000 notes will not be used. Have 50 days to turn them into banks and post offices.

– Banks will be closed on November 9.

– There is no restrictions on internet banking, cash, demand draft transactions.

– Rs 10,000 daily cash withdrawal and Rs 20,000 weekly cash withdrawal limit

– There are, however, some exemptions. Government hospitals and international airports.

– The ATMs will not function till November 9, and in some places till November 10.

– People who possess Rs.500 or Rs. 1000 currency notes after December 30 can exchange it at Reserve Bank of India by providing a declaration. This is till March 31, 2017.

– These notes should be exchanged in banks and head post offices and sub post office within December 30, 2016, by providing a valid identity proof such as Aadhaar, PAN card or voter ID card.

This is the first time that Prime Minister Modi has addressed the country in this manner since his election two years ago.

Prime Minister Modi also reviewed the security situation with Chiefs of three forces. He took stock of the situation along the LoC and International Border where Pakistan has been violating ceasefire for the past so many days. National Security Advisor Ajit Doval was present at the meeting. Army Chief Gen Dalbir Singh Suhag briefed Prime Minister on the situation and how the Army is handling the situation.  On Tuesday, one more jawan was killed in Pakistani shelling in Kashmir. Later, Prime Minister chaired a meeting of his senior ministers.