Prime Minister Narendra Modi surprised the nation with the announcement to scrap ₹500 and ₹1,000 currency notes presently in use at midnight Tuesday, November 8. The move is aimed at combating the scourge of black money, corruption and fake currencies that allegedly fund terrorism. Here are 9 things you should know about the currency swap:
1. The government will scrap ₹500 and ₹1,000 currency notes presently in use. All currency notes under ₹500 will still be accepted.
2. All national banks will be closed on November 9 for transactions.
3. People can deposit notes of ₹500 and ₹1,000 cash notes in their banks and post offices from November 10 till December 30, 2016. There will be a limit on withdrawals of upto Rs.10,000 a day or 20,000 a week for now.
4. Those unable to deposit them by Dec 30 can change them until March 31, 2017 by furnishing ID proof.
5. New currencies notes with denominations including ₹500 and ₹2,000 will be issued by The Reserve Bank of India from November 10.
6. Government hospitals will continue to accept the present ₹500 and ₹1,000 currency notes for 72 hours. Railway ticket bookings, airline counters, and government buses will also accept the old notes for 72 hours, Old banknotes will also be accepted at petrol stations, government-backed consumer coop stores, milk booths and crematoria.
7. Notes currently in use can be traded for up to ₹4,000 till November 24. After this, the amount will go up at a later date.
8. RBI has ramped up the production of new replacement notes over the last few months to meet requirements
9. New notes of ₹500 and ₹2,000 will have greater security features when they go into circulation.