In a historic announcement, the Government of India has decided that Rs. 500 and Rs. 1000 notes will no longer be legal tender from midnight, November 8, 2016.
The government announced that persons holding old notes of Rs 500 or Rs. 1000 can deposit these notes in bank or post offices from November 10 to December 30. There are also limits placed on the withdrawals from ATMs and bank for the very short run.
Basically, if you have those denominations in your wallet, they cannot be used until you exchange them at the banks for notes of Rs. 100 or Rs. 2000 – and that is not going to be easy, since all stores have already started turning people away with these notes.
So, what happens if it’s an emergency?
Don’t panic just yet.
During his address, the PM said that for 72 hours starting midnight November 8 (till midnight of November 11),
“on humanitarian grounds notes of five hundred and one thousand rupees will be accepted at government hospitals, pharmacies in government hospitals (with prescription of a doctor), 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”
So, if you are at a government hospital or the petrol station or traveling, you will be able to use your high-value cash. They cannot refuse to take it.
Further, e-cash will of course work everywhere. From Netbanking to PayTM will work for your transactions.