The latest move by the Centre is to bring down the flow of black money, a poll promise made by Modi during his campaign in 2014.
In his address, Modi spoke at length about the government's motives behind sudden scrapping of high denomination notes.
The main idea was to give Indians relief from massive corruption and reduce supply of black money stashed as high-value currency.
In his speech, Modi asked the people of the country to support the government's latest move.
He added that after Diwali, the nation should celebrate Imandari ki Utsav--the festival of honesty.
"So, in this fight against corruption, black money, fake notes and terrorism, in this movement for purifying our country, will our people not put up with difficulties for some days? I have full confidence that every citizen will stand up and participate in this 'mahayagna'," the PM said in his address.
"My dear countrymen, after the festivity of Diwali, now join the nation and extend your hand in this Imandaari ka Utsav, this Pramanikta ka Parv, this celebration of integrity, this festival of credibility," Modi added.