PM Modi drops a bomb, RBI explains | Demonetization of 500 and 1000 notes

currency ban

From midnight of November 8, 2016, Rs. 500 and Rs.1000 will cease to be legal tender. “These notes are just papers from tomorrow,” says the prime minister.

In a shocking announcement made by PM Narendra Modi about two hours ago, he has sent shockwaves across the nation. Rs 500 and Rs 1000 notes would be scrapped from midnight and would not be used for transactions after November 8. He announced immediate demonetization of these currency notes, making these notes invalid in a major assault on black money, fake currency and corruption.

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In his statement, PM Modi said that banks will not function for the next two days to cope up with the incoming traffic over the next few days.

The new 2000 and 500 rupee notes issues by Reserve Bank of India will look somewhat like this –

New 500 And 2,000 Rupee Notes That Will Be Issued

The new series of Rs. 500 notes, said economic affairs secretary Shaktikanta Das, will be called the Mahatama Gandhi series of bank notes and they also carry a picture of Delhi’s Red Fort.

RBI Governor Urjit Patel hailed the decision of Narendra Modi government to issue a blanket ban on the use of existing Rs 500 and Rs 1000 notes. Patel said that the fight against counterfeit notes and black money required such a drastic step.