The Government of India has decided that the Rs 500, Rs 1000 notes will no longer be legal tender from midnight, 8th November 2016.
This move will help in the fight against corruption, black money, money laundering, terrorism and financing of terrorists as well as counterfeit notes.
The Government has accepted the recommendations of the RBI to issue Rs 2000 rupee notes and new notes of Rs 500 will also be placed in circulation.
Notes of one hundred, fifty, twenty, ten, five, two and one rupee will remain legal tender and will remain unaffected by the decision today.
Prime Minister Shri Narendra Modi made these important announcements during a televised address to the nation on the evening of Tuesday 8th November 2016.
PM stated that on humanitarian grounds notes of five hundred and one thousand rupees will be accepted at government hospitals, pharmacies in government hospitals, booking counters for railway tickets, government buses, airline ticket counters, petrol, diesel and gas stations of PSU oil companies, consumer cooperative stores authorized by the state or central government, milk booths authorized by state government and crematoria, burial grounds.
Shri Modi emphasized that there is no restriction on any kind of non-cash payments by cheques, demand drafts, debit or credit cards and electronic fund transfer.