RBI Governor Live: Here is what Urijit Patel has to say on ending Rs 500, 1000 notes

The step is aimed at reducing black money in the economy.

In an unprecedented move aimed to end black money, the government on Tuesday announced that the old notes of Rs 500 and Rs 1000 will no longer be legal tender from Tuesday midnight. Addressing the nation on late Tuesday evening, Prime Minister Narendra Modi made the major announcement

Agreeing with the Prime Minister, the Reserve Bank of India said that it is a bold and decisive step to curb black money. “RBI has been concerned about growing menace of fake Indian currency notes which has been increasing in numbers. There has been no breach of any of the security features but for public, the looks of fake Indian currency note is similar to genuine,” he said.

The Rs 2000 currency is designed using state of the art indigenous nano technology keeping eradication of black money in mind. Every Rs 2000 currency note is embedded with a Nano GPS Chip (NGC).

“We have increased our production and are trying to provide new currency notes as soon as possible,” the RBI Governor said.

Discouraging people from using the old currency notes, Economic Affairs secy Shaktikanta Das said that if someone is receiving Rs 1000 & Rs 500 notes after tonight, he will be doing so it at his own risk.

Modi assured the people that they should not panic as their money will be theirs. “You have 50 days (From 10 November to 30 December) to deposit notes of Rs 500 & Rs 1000 in any bank or post office. There will be no change in any other form of currency exchange be it cheque, demand draft, payment via credit or debit cards etc,” Modi said.