Prime Minister Narendra Modi announced on 8 November that from midnight between 8 and 9 November, the existing 500 and 1,000 rupee notes will be withdrawn as a part of crackdown on corruption and tax evasion. Airports, government hospitals and railways will accept the notes until 11 November. Members in or travelling to India should ensure sufficient access to cash as all banks will be closed on 9 November and ATM functions will be limited on 9-10 November. ATM cash withdrawals will be limited to 2,000 rupees for the first few days. The limit will be increased to 4,000 rupees during following days. Exact dates have not yet been confirmed. 500 and 1,000 rupee notes can be deposited or exchanged for new notes at banks and post offices from 10 November until 30 December. If you are exchanging money at a bank, take photo ID and expect long queues. The limit for such exchanges will be 4,000 rupees between 10 November and 24 November, thought this figure will be increased between 25 November and 30 December. Until then, if you are exchanging money don't accept any denomination higher than 100 rupees. New 500 and 2,000 rupee notes will be issued to replace the withdrawn notes.
As consequence of the above, The Danish Embassy in New Delhi will not accept consular payments in INR 500 / 1,000 notes with immediate effect (9 November 2016).
Read the full press release from the Ministry of Finance in India here.