New Delhi, Nov 9 (NIA) – Indian Prime Minister Narendra Modi has announced that the Rs.500 and Rs.1000 bank notes will be withdrawn from the country’s financial system from Tuesday midnight, delivering a severe blow to money launderers and causing pain amongst millions of citizens holding cash savings.
In a surprise address to the nation on Tuesday evening, Modi said that as of Tuesday midnight, all 500 and 100 ruppee notes, worth 7.50 dollars and 15 dollars, would have no cash value.
Modi however assured that people holding the notes, would be able to deposit them in banks and post offices by the end of December. He also said that new bills for Rs.500 and Rs.2000 were being printed and they would be distributed to the banks as soon as possible.
In his address, he said that any indivitual making large bank deposits in the coming weeks would be the target of Indian tax authorities.
“Black money and corruption are the biggest obstacles in eradicating poverty,” Modi said.
“There is a need for a decisive war against the menace of corruption, black money and terrorism. Corruption, black money and terrorism are festering wounds which make the country hollow from within,” he said.
He also urged people to help government in its fight against fake currency and black money.
Banks and ATMS across India closed down on Wednesday in order to update their cash reserves. Banks also applauded the move stating that this would fight India’s massive black economy.
“We as a nation remain a cash based economy, hence the circulation of fake rupees continues to be a menace,” the Reserve Bank of India said in a statement.
However many of India’s poor termed Modi decision as a ‘draconian rule’ and said it had caused a financial disaster amongst the common people.