Market Watch

Rs 500, Rs 1,000 ban: Banks to remain open on Saturday, Sunday

09 November 2016 - 06:52 PM

After Government’s decision to scrap Rs 500 and Rs 1000 notes, Reserve Bank of India on Wednesday said that all Banks will remain open on upcoming Saturday and Sunday, i.e. November 11 and November 12. It was speculated that two-day off at banks, followed by a second Saturday, Sunday and Guru Nanak Jayanti will affect the process of exchange of old currency notes badly. 
However, Reserve Bank of India issued a statement and clarified that banks will function on November 12 and 13th.  Prime Minister Narendra Modi on Tuesday declared Rs 1000 and Rs. 500 as illegal tenders. He also asked the note holders to exchange the currency within a time-frame of 50 days, i.e. from November 11 to December 30. Besides Banks, ATMs have also been shut by the government for two days i.e November 9 and November 10.
RBI’s decision comes after Prime Minister Narendra Modi declared Rs. 1000 and Rs. 500 bank notes as illegal denominations in a bid to curb black money in the country on Tuesday evening. During his sudden address to the nation, the Prime Minister had also said that all banks will remain closed only tomorrow while some ATMs will be shut for two days. To avoid the chaos in common public, the government is taking up several measures and suspension of toll tax is one of them.