Prime Minister Narendra Modi has taken surprise decision over curtails the block in the nation. He announced that denomination of Rs 500 and Rs 1000 notes invalid with effect from midnight.
In his first televised address to the nation, Modi said people can deposit the notes of Rs 500 and Rs 1000 in their bank and post office accounts from November 10 till December 30. In his TV speech he said that such notes will become “mere paper”. Modi said this is being done to tackle the threat of black money in the country, which has weak the economy. He also said that ATM withdrawals will be restricted to Rs 2,000 per day till November 11, when this limit may be increased slowly. Modi said all notes in lower denomination of Rs 100, Rs 50, Rs 20, Rs 10 and all coins of Rs 5, Rs 2 and Re 1 will continue to be valid. He also announced that new notes of Rs 2000 and Rs 500 will be introduced. 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. He also expressed confidence that political parties, workers, social organizations and the media will go further than the government in making it a success. He also said that retail petrol pumps will accept such notes till November 11, after which the stations will have to keep a register of such notes for some time.The decisions come after a cabinet meeting.