Prime Minister Narendra Modi announced the government is scrapping with immediate effect the existing currency denominations of Rs 500 and Rs 1,000 notes. In an unprecedented move, Prime Minister Narendra Modi addressed the nation through Doordarshan, India's state television. He is scheduled to meet President Pranab Mukherjee after his telecast. He said the move was aimed at curbing the negative impact of fake currency, black money, corruption and terrorism on the nation's economy.

Currency notes of Rs 500 and Rs 1,000 can be exchanged in banks and head post offices till December 30, 2016, by producing a valid identity like PAN card, Aadhaar or a Voter ID card. Failing this these notes can be exchanged at a local Reserve Bank of India office till March 31, 2017. New notes of Rs 500 and Rs 2,000 would be released and circulated soon. Government hospitals will continue to accept 500 and 1,000 rupee notes. Medicines can be purchased with these notes for the next 72 hours. Prime Minister Modi said that the RBI will issue notes of Rs 500 and Rs 2,000, but will limit notes with higher value.