Prime Minister Narendra Modi on Tuesday announced that the Reserve Bank of India has decided to demonitise Rs 500 and Rs 1,000 notes in an effort to weed out corruption and black money. Here's a round-up of what you need to know.

What has changed?

  • Starting midnight on November 8, Rs 500 and Rs 1,000 notes will no longer be legal tender. 
  • Other currency notes – Rs 100, Rs 50, Rs 20 and Rs 10 – are still valid, as are all coins. 
  • All cashless transactions, such as cheques, cards and demand drafts, will continue as usual.
  • ATMs across the country will be closed on November 9, and they will not function in parts of the country on November 10. 
  • For the first few days after ATMs start working, there will be a withdrawal limit of Rs 2,000 per card. This will be raised to Rs 4,000 later.
  • Banks will remain closed on November 9.
  • New Rs 500 and Rs 2,000 notes will be introduced on November 10.

How can you exchange your notes?

  • The Rs 500 and Rs 1,000 notes can be submitted to post offices and banks from November 10 to December 30. 
  • You will need to provide valid identification such as a passport, PAN card or Aadhaar card.
  • If you are unable to exchange your notes by December 30, you can declare them with the Reserve Bank of India till March 31.
  • There will be a cap of Rs 20,000 on the amount of money that can be exchanged in a week and Rs 10,000 in a day.
  •  Tourists can change these notes at international airports.

What are the exceptions?

The Rs 500 and Rs 1,000 notes will be accepted at some locations till midnight on November 11 in public interest. These places are:

  • Hospitals
  • Government pharmacies
  • Government bus stations and railway ticket counters
  • Airports
  • Crematoria and burial grounds
  • Milk booths
  • Government-run consumer co-operative stores
  • Petrol, diesel and CNG stations