Download MediaNama's free Digital Payments in India report In a surprise move, Prime Minister Narendra Modi announced, effective today, all currency denominations of Rs 500 and Rs 1000 will no longer be considered as legal tenders to make transactions and will be phased out. In place of them the Reserve Bank of India will be circulating new Rs 2000 and Rs 500 notes. Some important information for everyone note: The RBI said that this was necessitated to tackle counterfeit notes, and nullify black money hoarded in cash and curb funding of terrorism with fake notes. From 10th November 2016, the value of these notes can be tendered at any office of the RBI, bank branch and post office and the amount will be credited into their bank accounts. For immediate cash needs, these notes of value upto Rs 4,000 per person can be exchanged for cash over the counter of these bank branches. ATMs and other cash machines will remain shut on 9th November 2016 to facilitate recalibration. When ready, they will be reactivated and cash drawals from ATM and other machines will be restricted to ₹ 2,000 per day. Non-cash methods of transactions such as cheques, NEFT, IMPS and RTGS will not be affected and people are allowed to transact through them. However, cash withdrawals from bank accounts, over the bank counters, will be restricted to a limited amount of ₹ 10,000 per week. This is has massive ramifications for the digital payments as India is still an economy which…
