To control the rising incidence of fake notes and black money, the scheme to withdraw high denomination notes has been introduced by RBI. High denomination notes have been misused by terrorists and for hoarding black money. Therefore the notes of denominations 500 and 1000 stand withdrawn. Consequently, high denomination (old) notes cannot be used for transacting business and/or store of value for future usage.
The old notes can be exchanged for value at any of the 19 offices of the Reserve Bank of India or at any of the Bank branches or at any head Post Office or Sub-Post Office. Further, the balances in bank accounts can be used to pay for other requirements by cheque or through electronic means of payments such as internet banking, mobile wallets, imps, credit/debit cards etc.