Prime Minister Narendra Modi rocked the nation on late Wednesday evening when he announced that 500 and 1000 rupee note will be discontinued effect from midnight. He said that making these notes invalid is a way to counter black money, fake currency, and corruption.
The demonetisation of ₹500 and ₹1,000 bank notes was a policy enacted by the Government of India on 8 November 2016, ceasing the usage of all ₹500 (US$7.40) and ₹1,000 (US$15) banknotes of the Mahatma Gandhi Series as legal tender in India after 9 November 2016.
— Rajinikanth (@superstarrajini) November 8, 2016
The announcement was made by the Prime Minister of India Narendra Modi in an unscheduled live televised address at 20:15 Indian Standard Time (IST) on 8 November. In the announcement, Modi declared that use of all ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series would be invalid after midnight of that day, and announced the issuance of new ₹500 and ₹2,000 banknotes of the Mahatma Gandhi New Series in exchange for the old banknotes. However, the banknote denominations of ₹100, ₹50, ₹20, ₹10 and ₹5 of the Mahatma Gandhi Series remained legal tender and were unaffected by the policy.