India scraps 500 and 1,000 rupee bank notes overnight

Posted on: November 09, 2016 | views: 113

Indian Prime Minister Narendra Modi has announced that the 500) and 1,000 rupee banknotes will be withdrawn from the financial system overnight.

The surprise move, announced last evening, is part of a crackdown on corruption and illegal cash holdings.

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.

Black money and corruption are the biggest obstacles in eradicating poverty, Mr Modi said.

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.

The announcement prompted people across the country to rush to ATMs that offer 100 rupee notes in an attempt not to be left without cash over the next few days.

Partly cloudy in the eastern region , mainly fair in the rest of the country. Light rain or thunder possible at one or two places of the eastern region towards evening.