In his first televised address to the nation, Mr. Modi said people holding notes of Rs. 500 and Rs. 1000 can deposit the same in their bank and post office accounts from November 10 till December 30.
People who posess currency notes of these denomination can exchange them in banks and head and sub post offices from November 10 to December 30, by providing a valid proof for identity such as Aadhar card, PAN card or voters ID card.
Post December 30, these notes will be accepted only by the Reserve Bank of India after submitting a declaration.
From midnight today, till November 10, ATMs will not function. Banks will be closed for public transactions tomorrow.
For a few days, only upto Rs. 2000 can be withdrawn from ATMs. This will be enhanced to Rs. 4000 later. The withdrawal limit for ATM will eventually be fixed at Rs. 10,000 per day and Rs. 20,000 per week.
There are some exemptions: Government hospitals, pharmacies at Government hospitals, public sector-run petrol bunks, and burial grounds.
Airports will make arrangements to inform international travellers that the cash limit is Rs. 5000.
This move will not affect debit cards, cheque and digital transfer of money.
All other denominations such as Rs. 100, Rs. 50, Rs. 10, Rs. 5, Rs. 2 and Re. 1 as well as coins will continue in circulation unaffected.
In an unusual televised address, as the NDA government completes two-and-a half years rule on Tuesday, Mr. Modi said Rs. 500 and Rs. 1000 denominations are mostly counterfeited "from across the border."
Meanwhile RBI shows the specimen notes of new Rs. 500 and Rs. 2000 notes which will be available 12th Nov. 2016 onwards in all ATMs & Banks.