Actually Indian government is not banning the highest denomination (₹500 and ₹1,000) paper notes. They are simply replacing the old notes with the new notes. And they have introduced the ₹2,000 banknote, which didn't existed earlier and news rumoured that there will be Nano GPS Chip in the note which will help tax department to track money through satellite.
Thank you for clearing things out,i really thought that they are getting rid of 500 and 1000. And it is a shocking news that theyre releasing a 2000 banknote with Nano GPS Chip. Maybe this time laundering of money and taxation will be implemented clearly.
No, they aren't banning those, but the circulation of the new notes of those denomination won't be fully complete until Jan of 2k17. Meanwhile, we are getting 2000 Rs. Notes more frequently and most shops aren't taking those notes, as, if we buy stuff worth Rs. 50, tell me , who would give 19 Rs 100 notes and one Rs. 50 in exchnage for that brand new 2000 Rs. note. It is jur making things difficult for us.