Sovereignty incident · inc-2016-in-demonetisation
India: ₹ 500 and ₹ 1000 banknotes withdrawn as legal tender
A Government of India notification of 8 November 2016 withdrew the legal tender character of the existing ₹ 500 and ₹ 1000 banknotes with effect from midnight. Holders could have their value credited to bank accounts, or exchange them over the counter up to ₹ 4,000 per person, until 30 December 2016. Until 24 November 2016, cash withdrawals from bank accounts were limited to ₹ 10,000 per day and ₹ 20,000 per week; ATM withdrawals were limited to ₹ 2,000 per card per day until 18 November and ₹ 4,000 afterwards. The notification concerned the ₹ 500 and ₹ 1000 notes only; banknotes of other denominations remained legal tender.
- When
- to
- Jurisdictions
- India
- Kinds
- Abolition, Restriction
What happened
The incident begins.
The incident ends.
Forms of money
Who was affected: Holders of ₹ 500 and ₹ 1000 banknotes, who had to deposit or exchange them by 30 December 2016, and bank customers, whose cash withdrawals were limited for several weeks. The value of the notes could be credited to a bank account in full.
Forms of money affected
Forms of money not affected
None listed for this incident.
Each form of money links to the Money in everyday life matrix, which compares their properties with sources.
Sources
Sources: Reserve Bank of India, Press release: Withdrawal of Legal Tender Status for ₹ 500 and ₹ 1000 Notes: RBI Notice (8 November 2016); Reserve Bank of India, Notification: Withdrawal of the legal tender character of the existing and any older series banknotes in the denominations of ₹ 500 and ₹ 1000 (9 November 2016)