Indian Prime Minister Narendra Modi announced that the 500 and 1,000 rupee banknotes will be withdrawn from the financial system overnight.
The surprise move, announced on Tuesday night, is part of a crackdown on corruption and illegal cash holdings.
Prime Minister Narendra said the move was aimed at curbing the negative impact of fake currency, black money, corruption and terrorism on the nation’s economy. Banks will be closed on Wednesday and ATM machines will not be working. India is overwhelmingly a cash economy. New 500 and 2,000 rupee denomination notes will be issued to replace those removed from circulation.
People will be able to exchange their old notes for new ones at banks over the next 50 days but they will no longer be legal tender. (QNA)