The Government of India decided that the Rs 500, Rs 1000 notes will no longer be legal tender from the midnight of 8th November 2016.
All scheduled and non-scheduled banks, including public, private, foreign, cooperative, regional rural and local area banks, will remain closed for public on Wednesday, November 9, 2016.
"All ATMs and other cash machines will remain shut on November 9, 2016 to facilitate recalibration. When ready, they will be reactivated and cash drawals from ATMs will be restricted to Rs 2,000 per day per card up to November 18, 2016 and the limits shall be raised to Rs 4000 per day per card from November 19, 2016", the RBI said.
Starting from November 10, 2016, corporate members, business firms, societies, trusts, etc., holding these notes can tender them at any office of the Reserve Bank or any bank branch and obtain value thereof by credit into their respective bank accounts.
This is necessitated to tackle counterfeiting Indian banknotes, to effectively nullify black money hoarded in cash and curb funding of terrorism with fake notes.
Cash withdrawals from bank accounts, over the bank counters, will be restricted to a limited amount of Rs 10,000 per day subject to an overall limit of Rs 20,000 a week from November 9, 2016 till end of business on November 24, 2016.