The current notes of Rs 500 and Rs 1000 will no longer be valid from November 8 midnight, Prime Minister Narendra Modi announced in a televised address to the nation.

In a bid to tackle the menace of counterfeit currency and black money, the government is removing from circulation Rs 500 and Rs 1,000 notes beginning midnight, Prime Minister Narendra Modi announced Tuesday evening addressing the nation.

“Currency notes of Rs.1,000 and Rs.500 will be just paper with no value,” Modi said. He assured that citizens’ who are in possession of these notes can deposit them with a bank or post offices and get their money in other notes. “People can deposit notes of Rs 1,000 and Rs 500 in their banks from November 10 till December 30, 2016,” he affirmed. Also, citizens can continue to use notes of other denominations, he said.

Those unable to submit all their old currency notes within the deadline, will be able to do so at the Reserve Bank of India up till March 31, 2017 by providing a declaration.

ATMs will not function on November 9, and on November 10 in some places.

For 72 hours, until the midnight of November 11, government hospitals, government-authorised consumer stores like milk booths and ticketing counters, will continue to accept the old Rs 1000 and 500 notes.

RBI’s proposal for new Rs 2000 note has been accepted.

All banks will remain closed on November 9 for public work.

EquityPandit Take: This surprise news is negative for Indian Stock Market for very short term as all cash would be taken out from the market and Real Estate sector would take a big hit but this move is very positive for medium term to long term for economy, Indian Stock Market and the country.