In an address to the nation, Prime Minister Narendra Modi announced that Rs 500 and Rs 1000 notes will be illegal tender from Tuesdaymidnight.
Calling this a necessary step in the fight against corruption and black money, the PM said that the government will try its best not to inconvenience people.
People who have Rs 500 or Rs 1000 notes in their possession can hand over the notes from November 9 to December 30 to any post office or banks. However ATMs across country will not work on November 9 and in some places on November 10. All banks across the nation will be closed for public dealings on November 9.
Those handing over currency notes will have to carry identification with them.
The PM also added that fuel stations, airports and hospitals will accept Rs 500 and Rs 1000 till November 11 midnight.
The Reserve Bank of India has accepted the proposal said the PM in his television address and added that new Rs 500 and Rs 2,000 notes will be introduced.
The PM also said that withdrawal limit at ATMs will be limited to Rs 2,000 per transaction, however he did not mention how long this step would be implemented.
Corruption, black money and terrorism can come in the way of a country's robust economic growth, said the Prime Minister. He also said that terrorists were using counterfeit currencies and spreading terror.
"We hear stories of how an autorickshaw driver gives back gold left by a passenger in his vehicle. These stories tell how common people are honest. A few people engage in corruption for selfish reasons", PM said.
"In every country's history, there comes a moment which every citizen wishes to be a part of. But there are very few such moments in one's life. Today time is giving us that opportunity again. Every citizen can contribute now to this fight against black money."
"Your money is yours. You will note lose anything. The government will ensure that," said PM Modi.
The RBI will soon introduce new Rs 500 and Rs 2,000 notes with a new design.
RBI announced that the notes will be introduced from November 10 and will be smaller than the present notes. The Rs 500 notes will be called the Mahatma Gandhi series. The Rs 2,000 notes will have pictures of Mahatma Gandhi and Mangalyaan on it.
What you can do with your Rs 500 and Rs 1000 currency notes:
Change them at the bank or post office between November 10 and December 30.
Carry your Aadhaar card and pan card when you go to exhange notes.
You can exchange these notes at Reserve Bank after December 30.
The picture of the new Rs 2000 note.