On the evening of 8 November 2016, the Government of India, via a televised address by Narendra Modi, announced that all existing ₹500 and ₹1,000 banknotes would cease to be legal tender from midnight. These two denominations accounted for approximately 86 % of the nation’s currency in circulation.

The move was aimed at curbing undeclared (“black”) money, counterfeit currency, and promoting a transition towards a more formal, digital economy. In the immediate aftermath, citizens queued overnight at banks and ATMs to exchange or deposit old notes, while cash shortages severely disrupted informal sectors and everyday transactions.
Over time, the policy’s effectiveness in achieving its stated objectives has been widely debated - some gains in digital payments and tax filings were recorded, but the cost to economic activity and employment in the informal sector was significant.