Prime Minister Narendra Modi has announced that the Indian currency notes of Rs 500 and Rs 1,000 will not be valid anymore and will be deemed illegal from the intervening midnight (12 am) of Tuesday and Wednesday.
Modi said that the notes of these values in your possession will only be "worth the paper they are printed on."
Modi, during his announcement, said that there will be no change in any other kind of monetary exchange like DD, cheque payment, or debit or credit card.
There will soon be a fresh batch of Rs 500 and Rs 2,000 notes in the market. A proposal for the new notes has already been cleared by the Reserve Bank of India.
So here is what you can do with the Rs 500 and Rs 1,000 notes in your possession, and get rid of these notes legally:
- Get them changed at the bank or the post office until 50 days from now. You can only exchange these notes from November 10 to December 30.
- Carry your Pan Card and Aadhaar card when you go to the above mentioned places to exchange your notes.
- Your notes can, however, be exchanged after December 30 at the Reserve Bank of India with a declaration.
- Tourists are allowed to change their notes at the airports.
Modi said that the Rs 500 and Rs 1,000 notes had to be scrapped to stop the spread of counterfeit notes in the Indian market. He said that the spread of these notes is helping terror activities from across the border.