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1.PM Narendra Modi said 500 and 1000 rupee notes are being demonetised
2.New 500 and 2000 rupee notes will be introduced
3.1000 rupee note is being completely discontinued
On Tuesday evening, Prime Minister Narendra Modi made an unexpected announcement where he stated that the Rs. 500 and Rs. 1,000 notes in circulation are being discontinued as legal tender. It is news that has taken many unawares, and immediately fuelled speculation that this will push people towards more digital transactions, with people preferring to use virtual wallets, and other digital modes of payment, rather than carrying wallets full of Rs. 100 notes.
This excitement around the digital economy might have been premature, as the Prime Minister Narendra Modi soon followed up with the news that new Rs. 500 notes are going to be issued, and a brand new denomination of Rs. 2,000 will soon be in circulation as well.
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