The Indian Rupee 500 and 1000 bills are no longer legal tender
On the 8th of November 2016, the Indian government announced the scheme that all the 500 and 1000 Rupee bank notes would from that point on, no longer be legal tender.
The Indian government will shortly be introducing new banknotes of 500 and 2,000 Rupees and will be bringing these into circulation (the exact timing of this is as of yet, unknown). Until this time, you will only be able to pay using 1000 Rupee bills, or bills/coins of lesser value. Furthermore, you shall also be able to pay via your bank -or- credit card. We would advise you not to accept 500 and 1000 Rupee bills any longer, due to the fact that you will not be able to use them yourself.
If you have old 500 or 1000 Rupee bills, then you will be able to exchange these for 100 Rupee bank notes. Keep in mind that this will only be the possibilities for exchanging your currency will be limited between the 10 of November till the 24 of November. Moreover, you will only be able to exchange 4,000 Rupees at a time (which is approximately € 57.00). You will be able to exchange your bank notes at banks, post-offices, Forex change offices, and at the airport. Bear in mind that you will need to show a valid ID and that long waiting lines are foreseeable. Additionally the chance that the stockpile of 100 Rupee notes will run out is also a conceivable possibility. From the 24 November till the 30 December (the last day that the 500 and 1000 Rupee bills can be exchanged) you will be able to exchange your tender on an unlimited basis.
For more information, please visit the FAQ of the Bank of India: http://nlembassy.us12.list-manage.com/track/click?u=a86099d4873d28049025923fd&id=588ce376fd&e=f5e47ff71e.