India today abolished the Rs500 and Rs1,000 currency notes currently in circulation and announced plans to release new notes in a fight against corruption.

Prime Minister Narendra Modi in an address to the nation said the ban will come into force at midnight tonight.

He said corruption is a major issue facing the country and hindering the economic progress.

The move is a stern step against black money and fake currency, which is believed to fund terror activities in the country.

Modi said new notes of Rs2000 and Rs500 will be circulated soon. However the circulation of notes with higher value will be limited, he said.

The old notes can be exchanged from November 10 to December 30 in any bank or post office.

Earlier in the day, Modi met Chiefs of Army and Navy Staffs and Vice Chief of Air Staff, who came to brief him on the security preparedness of the forces manning the border outposts.

During the meeting, the Prime Minister is understood to have taken stock of the situation along the Line of Control (LoC) and International Border where Pakistan has been regularly shelling military posts as well as civilian areas. - TradeArabia News Service