Sun, Dec 4, 2016 | updated 01:46 PM IST

De-recognition of Rs. 500, 1000 notes will curtail parallel economy: Chanda Kochhar

Updated: Nov 09, 2016 08:20 IST

New Delhi [India], Nov. 9 (ANI): Chanda Kochhar, the managing director and chief executive officer of ICICI Bank, has welcomed the government's decision to derecognize Rs. 1000 and 500 notes beginning November 9, saying it is perhaps the most significant move ever taken to curtail the parallel economy.

While speaking to ANI, Kochhar said the move will give a sharp boost to all formal channels of payment which in turn will help the formal economy to grow.

The government today took a bold step of discontinuing with Rs. 500 and Rs 1,000 notes from midnight in a move to curb black money and counterfeit currency.

Prime Minister Narendra Modi, in his address to the nation, explained the move as the government's attack on black money.

These notes can be exchanged for lower denomination notes at post offices and banks from November 10 till the end of March 2017.

The Prime Minister also added that all banks will remain closed for public work tomorrow.

"Terror strikes at the innocent. Who funds these terrorists? Across the border, our enemy uses fake currency and dodgy funds to sponsor terror - this has been proven repeatedly. The process of cash circulation is directly related to corruption in our country impacting the lower classes of our society. From midnight November 8 today, Rs. 500 and Rs. 1000 notes are no longer legal tender," Prime Minister Modi said.

"You have 50 days (From November 10 to December 30) to deposit notes of Rs. 500 and Rs. 1000 in any bank or post office. Respite for people for the initial 72 hours. The government hospitals will accept old Rs. 500 and Rs. 1000 notes till November 11 midnight," he added.

Prime Minister Modi said notes of Rs. 2000 and Rs. 500 will be circulated soon.

"The RBI has decided to limit the notes with higher value. There will be more purification the more we get support from you. Let's continue the process of cleanliness and work together for successful completion of this initiative. We want to take this fight against corruption even ahead," he added.

The Prime Minister further said ATMs will not work on November 9 and in some places on November 10.

"There will be no change in any other form of currency exchange be it cheque, DD, payment via credit or debit cards etc," he added. (ANI)