India scraps 500 and 1,000 rupee bank notes overnight

<p>Indian Prime Minister Narendra Modi has announced that the 500) and 1,000 rupee banknotes will be withdrawn from the financial system overnight.</p><p>The surprise move, announced last evening, is part of a crackdown on corruption and illegal cash holdings.</p><p>Banks will be closed on Wednesday and ATM machines will not be working.</p><p>India is overwhelmingly a cash economy. New 500 and 2,000 rupee denomination notes will be issued to replace those removed from circulation.</p><p>Black money and corruption are the biggest obstacles in eradicating poverty, Mr Modi said.</p><p>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.</p><p>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.</p><p>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.<br></p>