Taking a firm stand on corruption, Prime Minister Narendra Modi today announced the scrapping of all Rs 500 and Rs 1,000 notes with immediate effect.

Speaking at the special nationwide TV address, Modi said,

Currency notes of Rs 1,000 and Rs 500 will be just paper with no value. From tonight 12 am, Rs 1,000 and Rs 500 will not be legal tender.

He further added that,

Corruption is deep-rooted in the country. From across the border, our enemies are running a racket in India through fake currency. Black money to the tune of Rs 1.25 lakh crore has been unearthed during the last two-and-a-half years. Corruption, fake currency, and terrorism are festering wounds, holding back the economy, says PM.

He also said,

Those unable to deposit their notes of Rs 1,000 and Rs 500 by December 30 for some reason, they can change the notes till March 31, 2017 by furnishing ID proof. You have 50 days (from November 10 to December 30) to deposit notes of Rs 500 and Rs 1,000 in any bank or post office.

This announcement comes at the end of a day on which he met the three chiefs of the armed forces — Army Chief Dalbir Singh, Navy Chief Sunil Lanba, and Indian Air Force Vice Chief BS Dhanoa — to review India's security following the tension with Pakistan.

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National Security Advisor Ajit Doval was also present at the meeting. The Prime Minister then chaired a meeting of his senior ministers.

He further added that,

The various schemes launched by the government are aimed at empowering the poor. It shows the government is dedicated to the poor. The process of cash circulation is directly related to corruption in our country, impacting the lower classes of our society

Stating from February 2017, the RBI will start issuing Rs 2,000 notes as well.