AKIPRESS.COM - People are queuing up outside banks across India to exchange 500 and 1,000 rupee notes which were banned by the government on Tuesday, according to BBC.

People will be able to exchange their old notes, which are no longer legal tender, for new ones at banks until 30 December.

The surprise move is part of a crackdown on corruption and illegal cash holdings.

Banks were shut on Wednesday to allow them enough time to stock new notes.

There are also going to be limits on cash withdrawals from ATMs starting on Thursday.

The banned currency notes represent 85% of the cash in circulation in India.

New 2,000 (about US$30) and 500 rupee denomination notes to replace those removed from circulation will be injected into the economy over the next "three to four weeks", Finance Minister Arun Jaitley earlier said.

The move is designed to lock out money that is unaccounted for – known as "black money" – which may have been acquired corruptly, or is being withheld from the tax authorities.

Finance Secretary Shaktikant Das warned people with large amounts of hidden cash that banks would closely monitor the exchange of old notes for new ones.

The government says the move would flush out tax evaders, adding that all old notes deposited in banks would be subjected to tax laws.