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India scraps 500, 1,000 rupee currency notes

Xinhua | Updated: 2016-11-09 10:50
India scraps 500, 1,000 rupee currency notes

A customer waits to deposit 1000 Indian rupee banknotes in a cash deposit machine at bank in Mumbai.[Photo/Agencies]

Indian Prime Minister Narendra Modi Tuesday announced the existing currency notes of 500 and 1,000 Indian rupees will be withdrawn from the country's financial system.

According to Modi, the currency notes will no longer be legal tender from Tuesday midnight.

"1,000 and 500 rupee notes will cease to be legal tender from midnight tonight and those who are in possession of these notes can deposit the notes in their accounts in banks and post offices from 10th of this month to 30th of December this year," Modi said in a special nationwide televised address Tuesday evening.

The step is touted as an important move to end corruption and illegal cash holdings, besides putting down a clampdown on tax evaders.

"Government has waged a war against corruption," Modi said. "Corruption, fake currency and terrorism are festering wounds, holding back the economy."

Modi said new currency notes of 500 and 2,000 rupees denomination to be introduced and placed in circulation.

India scraps 500, 1,000 rupee currency notes

A couple deposits 500 Indian rupee banknotes in a cash deposit machine in Rajkot.[Photo/Agencies]


Banks have been told to exchange scrapped denominations until March 31, after which depositors have to furnish identity proof.

However, petrol pumps, CNG stations, milk booths, consumer cooperative stores and crematoriums will accept old notes for the next 72 hours.

Like wise railway booking counters, ticket counters of government buses and airline ticket counters will also accept the old notes for the two days.

Banks will be closed on Wednesday for public transactions and allow to make changes.

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