The entire nation was shocked when the Prime Minister of India announced the demonetization of existing Rs 500 and Rs 1000 notes effecting from 9th November 2016. Some are already saying the decision as to the “surgical strike” on black money and corruption. There are lots of unanswered questions and here is the detailed guide what this announcement means to every Indian using the currency.
As the people, will deposit their existing notes of Rs.500 and Rs.1000 at the bank branches, they will get the value for the entire volume of notes. As per the RBI order, all Public Sector Banks, Private Sector Banks, Foreign Banks, Regional Rural Banks, Urban Cooperative Banks, and State Cooperative Bank are advised to keep all their branches open on November 12th and 13th 2016 as a regular working day.
The RBI will shortly put into circulation new 500 and 1000-rupee bank notes by incorporating three new features; like bleed lines and enlarged identification mark.
The RBI bank will issue Rs. 500 denomination banknotes in Mahatma Gandhi (New) Series with letter ‘E’ in both the number panels, bearing the signature of the Governor of Reserve Bank of India Dr. Urjit R Patel. The year of printing ‘2016’ and SWACHH BHARAT Logo Printed on the reverse on the Banknote.
The new Rs.500 banknotes are different from the earlier specified banknote (SBN) series in color, size, theme, the location of security features and design elements; the principal features are;
- The size is 66mm x150mm
- The color is stone grey
- Red Fort-an image of Indian heritage site with Indian flag on the reverse.
The banknote also has features (intaglio printing of Mahatma Gandhi portrait, Ashoka Pillar emblem, bleed lines, a circle with 500 in the right, and the identification mark) which enable the visually impaired person to identify the denomination.
Reserve Bank of India has listed detailed information on its website and FAQs on Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of Rs. 500 and Rs. 1000.
Why is this scheme introduced?
The incidence of fake Indian currency notes in higher denomination has increased. For ordinary persons, the fake notes look similar to genuine notes, even though no security feature has been copied. The fake notes are used for antinational and illegal activities.
High denomination notes have been misused by terrorists and for hoarding black money. India remains a cash-based economy hence the circulation of Fake Indian Currency Notes continues to be a menace. In order to contain the rising incidence of fake notes and black money, the scheme to withdraw has been introduced.
What is this scheme?
The legal tender character of the existing banknotes in denominations of Rs. 500 and Rs. 1000 issued by the Reserve bank of India till November 8, 2016 (hereinafter referred to as Specified Bank Notes) stands withdrawn. In consequence, thereof these Bank Notes cannot be used for transacting business and/or store of value for future usage. These Bank Notes can be exchanged for value at any of the 19 offices of the Reserve Bank of India or at any of the bank branches or at any Head Post Office or Sub-Post Office.
You will get value for the entire volume of notes tendered at the bank branches / RBI offices.
No. You will get up to ₹4000 per person in cash irrespective of the size of tender and anything over and above that will be receivable by way of credit to the bank account.
The Scheme does not provide for it, given its objectives.
You can use balances in bank accounts to pay for other requirements by cheque or through electronic means of payments such as Internet banking, mobile wallets, IMPS, credit/debit cards, etc.
You can always open a bank account by approaching a bank branch with the necessary documents required for fulfilling the KYC requirements.
A JDY account holder can avail the exchange facility subject to the caps and other laid down limits in accord with norms and procedures.
The exchange facility is available at all Issue Offices of RBI and branches of commercial banks/RRBS/UCBs/State Co-op banks or at any Head Post Office or Sub-Post Office.
For exchange up to 4000 in cash, you may go to any bank branch with valid identity proof. For exchange over 4000, which will be accorded through credit to Bank account only, you may go to the branch where you have an account or to any other branch of the same bank.
In case you want to go to a branch of any other bank where you are not maintaining an account, you will have to furnish valid identity proof and bank account details required for electronic fund transfer to your account.
Yes, you can go to any branch of your bank.
Yes, you can go to any branch of any other bank. In that case, you have to furnish valid identity proof for exchange in cash; both valid identity proof and bank account details will be required for electronic fund transfer in case the amount to be exchanged exceeds ₹4000.
Yes, you can do that if the account holder relative/friend, etc. gives you permission in writing. While exchanging, you should provide to the bank, evidence of permission given by the account holder and your valid identity proof.
Personal visit to the branch is preferable. In case it is not possible for you to visit the branch you may send your representative with an express mandate i.e. a written authorization. The representative should produce an authority letter and his / her valid identity proof while tendering the notes.
It may take a while for the banks to recalibrate their ATMs. Once the ATMs are functional, you can withdraw from ATMs up to a maximum of ₹2,000/- per card per day up to 18th November 2016. The limit will be raised to ₹4000/- per day per card from 19th November 2016 onwards.
Yes, you can withdraw cash against withdrawal slip or cheque subject to the ceiling of ₹10,000/- in a day within an overall limit of ₹20,000/- in a week (including withdrawals from ATMs) up to 24th November 2016, after which these limits shall be reviewed.
Yes, Specified Bank Notes can be deposited in Cash Deposits machines / Cash Recyclers.
You can use NEFT/RTGS/IMPS/Internet Banking/Mobile Banking or any other electronic/ non-cash mode of payment.
The scheme closes on 30th December 2016. The Specified banknotes can be exchanged at branches of commercial banks, Regional Rural Banks, Urban Cooperative banks, State Cooperative Banks and RBI till 30th December 2016.
For those who are unable to exchange their Specified Bank Notes on or before December 30, 2016, an opportunity will be given to them to do so at specified offices of the RBI, along with necessary documentation as may be specified by the Reserve Bank of India.
If you have Specified banknotes in India, you may authorize in writing enabling another person in India to deposit the notes into your bank account. The person so authorized has to come to the bank branch with the Specified banknotes, the authority letter given by you and a valid identity proof (Valid Identity proof is any of the following: Aadhaar Card, Driving License, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its Staff)
Yes, you can deposit the Specified banknotes to your NRO account.
You can purchase foreign exchange equivalent to ₹5000 using these Specified Bank Notes at airport exchange counters within 72 hours after the notification, provided you present proof of purchasing the Specified Bank Notes.
You can use the Specified Bank Notes for paying for your hospitalization charges at government hospitals, for purchasing bus tickets at government bus stands for travel by state government or state PSU buses, train tickets at railway stations, and air tickets at airports, within 72 hours after the notification.
Valid Identity proof is any of the following: Aadhaar Card, Driving License, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its Staff.
You may approach the control room of RBI by email or on Telephone Nos 022 22602201/022 22602944.