Going by his promise in 2014 general elections to bring black market money into the regular financial system, Prime Minister Modi on Tuesday in a televised address to the nation said that high denomination notes of Rs 500 and Rs 1000 will no longer be legal. PM Modi announced a “decisive” war against black money and corruption while disclosing a raft of steps to assure the common man that their money is safe. PM Modi said banks and ATMs will remain closed on November 9 and in some places ATMs may remain closed on November 10. Across the country, people rushed to ATMs where money could be withdrawn in Rs 100 notes, trying to avoid being caught without cash over the next few days. Welcoming the bold step taken by the government, President Pranab Mukherjee called upon the people not to panic as the move would help unearth unaccounted money as well as counterfeit currency. The finance ministry said that new banknotes of Rs 500 and Rs 2,000 would be introduced from November 10. The old notes can be deposited in banks and post offices from Nov. 10 to Dec. 30. Governor of the Reserve Bank of India, Urjit Patel, said he saw no impact on liquidity in the wholesale market and that the bank had ramped up production of the new series of notes over the last few months. Experts said Tuesday’s move was the biggest in decades aimed at fighting graft.
Here are the live updates on PM Modi’s speech Today:
12:20pm: FM Arun Jaitley: This is no immunity scheme; all deposits of old Rs 500, Rs 1,000 notes in bank accounts will be subject to tax laws. Political funding will be impacted by the withdrawal of higher denomination currency notes. People with black money are worried, replacement currency to be in market in 3-4 weeks.
12pm: NHAI instructed all toll plazas to accept old Rs 500, Rs 1,000 notes till Nov 11 midnight: NHAI Chairman.
11:25am: Cash withdrawal restrictions will be eased once the supply of new, hard-to-fake Rs 500 and Rs 2,000 currency notes improves and a stockpile of lower denomination notes is created, the government said today. A day after it withdrew high-denomination bank notes of Rs 500 and Rs 1,000 in the country’s biggest crackdown against black money and corruption, the government said a lot of money lying unused will come into the formal economy that can be used for economic development of the country. “There would be some short-term effect on the level of activity in the economy but once the supply of new currency notes is sufficient, then markets should stabilise and even the level of activity should go up,” Revenue Secretary Hasmukh Adhia told PTI here.
11:15am: Old high-denomination bank notes of Rs 500 and Rs 1,000 will be accepted at Metro for 72 hrs: DEA Secretary
11:00am: Many petrol pumps and other retailers refused to accept Rs 500 and Rs 1000 notes, and bank ATMs stayed closed. In the stock market, real estate firms that depend on cash transactions were hit particularly hard, with DLF Ltd, India’s biggest property developer, was down 17 percent.
10:45am: NASSCOM welcomed the announcement by Prime Minister Narendra Modi of scrapping the current high-value currency notes of Rs 500 and Rs 1,000 denomination, and replacing the Rs 500 notes with a new design. This move is a masterstroke that will make a major dent on unaccounted or ‘black money’, rendering it valueless unless it is taken to a bank to be exchanged, potentially bringing it into the tax net.
10:30am: Coming down heavily on the Centre over the sensational development of scrapping 500 and 1000 rupee notes, the Trinamool Congress on Wednesday asserted that instead of delivering his electoral promise of bringing back black money stashed abroad, Prime Minister Narendra Modi was putting pressure on the common man.
9:15am: Sensex crashes 1,340 pts, Nifty plunges 476 points in pre-open session on black money crackdown and Trump’s strong show in US poll. Rupee nosedives 23 paise against US dollar to 66.85 in early trade on black money crackdown.
7:35am: Nearly 40 percent of India’s economy is driven by small- and medium-sized enterprises that largely run on cash transactions. Economists said the move could impact these businesses, and in turn have a knock-on effect on economic growth.
7:30am: The SGX India Nifty futures contract fell 1.7 percent in early trade in Singapore on Wednesday, indicating losses for Indian stock markets after a surprise move by Prime Minister Narendra Modi to abolish larger denomination banknotes.
1:10am: Shortly after the Prime Minister announced demonetisation of Rs 1,000 and Rs 500 notes, Union Health Minister J P Nadda instructed all Central government hospitals and pharmacies to adhere to the 72-hour guideline of accepting the old notes for the convenience of patients.
12:30am: Uttar Pradesh Chief Minister Akhilesh Yadav urged the Centre to ensure that the decision to ban Rs 1,000 and Rs 500 currency notes does not have an adverse impact on the poor, farmers and villagers
— Devendra Fadnavis (@Dev_Fadnavis) November 8, 2016
11:02pm: Gagan Banga, Vice Chairman & MD, Indiabulls Housing Finance Ltd: It’s a very innovative mood. No gain without pain. Extremely good for housing finance companies as element of cash will reduce and formal credit demand will increase.
11pm: Anuj Puri, Chairman & Country Head, JLL India: The banning of higher currency notes is a major move which will help curb unaccounted-for cash in the real estate sector.
10:59pm: Saravana Kumar, CIO, LIC Mutual Fund: If you look at India’s economy point of view it’s a very good measure. It’s a very strong and bold step. Inflation will moderate and it’s going to control the fiscal deficit. Black money will come down drastically. Since inflation is going to moderate it’s good for the bond markets as well. It’s good for the equity market, currency market and bond markets.
10:58pm: Nirmal Jain, Chairman, India Infoline: It is a very powerful measure to curb black money. Mr. Modi has kept his promise of taking stern measures against black money. It will have deflationary impact in general and more specifically on real estate prices and make homes affordable, and is indirectly a boon to honest tax payers.
10:57pm: CJ George, Managing Director of Geojit BNP Paribas, described this as the creation of Swachh Bharat in one stroke of a pen
10:56pm: Indiabulls Housing Finance Vice-Chairman Gagan Banga said, “it’s very good for housing finance companies as the element of cash will go down and demand for formal credit will increase.”
10:55pm: Veteran investment banker Vallabh Bhansali termed this as the “third freedom struggle” after the Independence movement and the liberalisation of 1991, and a voluntary disclosure scheme in disguise. He also described it as a “revolutionary” step.
10:54pm: PayTM founder Vijay Shekhar Sharma, whose company offers the much-needed alternative for the cash economy, said it is the “best move” which will boost digital payments.
10:52pm: CII President Naushad Forbes said demonetising high denomination notes can be an effective means of checking accumulation of wealth in cash.
10:45pm: Deepak Parekh to ET Now: Verifying source of currency notes will provide a lot info to the tax dept. It’s disruptive for 2-3 months, but it will be good in the medium term
10:40pm: Deepak Parekh to ET Now: Real estate prices will fall over the medium term because of this move. Land transactions have always been in cash, this move will end that
10:35pm: Deepak Parekh to ET Now: People with lakhs of money in cash will be affected. Corruption in real estate will come down and land prices will come down
10:30pm: Andhra Pradesh Chief Minister Chandrababu Naidu: This a major step forward towards wiping out black money. This will also pave the way for eliminating corruption
10:20pm: This decision will take us way forward, which has been made for the benefit of the nation: MP CM Shivraj Singh Chouhan
10:10pm: Would like to congratulate PM Modi on making such a good decision on black money: Baba Ramdev on scrapping of Rs 1000 and Rs 500 notes
10:02pm: Devendra Fadnavis, Maharashtra CM: People of our nation would support and participate like true soldiers in this war against black money. This is a milestone in nation’s progress.
10pm: Chanda Kochhar to ET Now: Discretionary cash spending will be curtailed. Electronic payments in India is still much less than what it could be
10pm: Chanda Kochhar to ET Now: Banks will internally pull back old Rs 500 & Rs 1000 notes and bring in new notes. Move will curb black money & parallel economy; boost non-cash transactions
10pm: Chanda Kochhar to ET Now: As per RBI notification, ATMs will have to be shut from midnight. It will require focussed efforts from banks to ensure least inconvenience
9:59pm: Chanda Kochhar to ET Now: Can’t think about the cost of the exercise now, consumers will have to be patient for a few days
9:58pm: Are you not putting cumbersome burden on them by putting a limit on how much money can be withdrawn? asks RS Surjewala of the Congress party
9:56pm: What happens to those who are going to buy necessary articles for marriages including jewellery, clothes etc? asks RS Surjewala of the Congress party
9:54pm: President Mukherjee reminded people that all currency notes below Rs 500 will continue as legal tender
9:52pm: President Pranab Mukherjee called upon people not to panic and follow government guidelines for exchange of Rs 1000/500 notes
9:50pm: President Pranab Mukherjee – We welcome bold step of Government of India which will help unearth unaccounted money & counterfeit currency
9:40pm: Randeep Singh Surjewala: Congress has always supported any step against black money, and will continue to do so
UP: People lined up outside ATM in Lucknow after PM Narendra Modi scrapped the currency notes of Rs 1000 & Rs 500 pic.twitter.com/S15xbspj9Q
— ANI UP (@ANINewsUP) November 8, 2016
9:30pm: If someone is receiving Rs 1000 & Rs 500 notes after tonight, he is doing it at his own risk: Shaktikanta Das
9:25pm: Shaktikanta Das – We will review the situation after 24 Nov, new notes will be in circulation from November 10
9:20pm: There will be no impact on the liquidity on the wholesale markets. If at all there is any, we’ll make sure that its addressed: Urjit Patel
9:15pm: RBI will release new currency notes with new features,designs and dimensions from 10 November onwards: Shaktikanta Das
9:10pm: Keki Mistry: PM Modi’s move is ‘fantastic’, well-timed post disclosure scheme. Will remove huge amount of black money
9:05pm: Keki Mistry “conceptually a great move” Will have a very positive impact on real economy
9:00pm: Baijayant Jay Panda: What a fantastic move against black money to ban Rs 500 and Rs 1000 notes! This will be a game changer. I welcome it wholeheartedly
8:55 pm: Speaking after the PM Modi’s historic speech, SIT (black money) Chairman said, “Those holding untaxed assets and income despite government giving them opportunity to declare will suffer; such a move was necessary”.
8:55 pm: Decision to scrap Rs 500 and Rs 1,000 notes very good to combat black money: SIT Chairman Justice (retd) M B Shah.
8:40 pm: We want to take this fight against corruption even ahead. Wish to thank all: PM Narendra Modi. He also expressed confidence that political parties, workers, social organisations and the media will go further than the government in making it a success.
8:38 pm: So lets continue the process of cleanliness and work together for successful completion of this initiative: PM Narendra Modi
8:35 pm: Jitna sehyog aapse milega, utna shuddhikaran hoga (The more support we will get from you, the more we will clean): PM Narendra to the nation
8:34 pm: Notes of Rs 2,000 and Rs 500 will be circulated soon, RBI has decided to limit the notes with higher value, says PM Narendra Modi
8:30 pm: On November 9 and in some places November 10, ATMs will not work, says Modi.
8:25 pm: On November 9, all banks will remain closed for public work, Modi said. Banks will be closed tomorrow. “It will cause some hardship to you….Let us ignore these hardships… In country’s history, there comes a moment when people will want to participate in the nation building and reconstruction. Very few such moments come in life,” Modi said. He expressed confidence that the staff of banks and post offices will rise to the occasion to introduce the new order within the available time.
8:20 pm: There will be no change in any other form of currency exchange be it cheque, DD, payment via credit or debit cards etc, he said.
8:15 pm: He further said that besides poor population, all the policies of centre are dedicated for the upliftment of entire society.
PM addres to the nation: LIVE speech:
Modi said that there is a time when one realise that one has bring some changes in society and this is the time for India to feel the same.
8:10 pm: Counting the works of his government, he said that corruption and black money is something they have fought for immediately after assuming office.
8:08 pm: Making a big announcement, PM said that Rs 500 and Rs 1,000 notes are no longer legal tender. The order will come into effect from tonight after 12 o’clock. You have 50 days (From 10 Nov to 30 Dec) to deposit notes of Rs 500 & Rs 1000 in any Bank or Post office. He gave a 72 hours leeway at airport counters. (Only Rs 100, Rs 50, Rs 10, Re 1 to be legal).
8:05 pm: Respite for people for the initial 72 hours, Govt hospitals will accept old Rs 500 and 1,000 notes till 11 November midnight.
In Pics: New Rs 500 note that will be issued pic.twitter.com/N51HDChDs3
— ANI (@ANI_news) November 8, 2016
One day limit on ATM withdrawals reduced to Rs 2,000 only, says PM.
In Pics: New Rs 2000 Note that will be issued pic.twitter.com/4NXhNOpxxA
— ANI (@ANI_news) November 8, 2016
8:03 pm: India has registered itself as a bright spot, and its not that this is a claim made by us, but by IMF and World Bank: PM Narendra Modi
8:02 pm: This government is dedicated to the poor and it will continue to do so.
8:01 pm: Modi said in his address that corruption has been spread in the nation by a certain class of people for their own benefits.