How to Deposit or exchange old rs 500 and 1000 Notes | ATM Withdrawal (Maximum) Limit
It has been announced by the Prime Minister of India, a couple of days back, that in India the higher domination notes, Rs.500 notes and Rs.1000 notes, will ban from now on. Here are the all the queries that one may have relating this issue.
Reason behind this ban
The reason behind this ban is the fact that the availability of fake India currency in the higher denomination notes has increased to a great extent in the recent times. In the market there are a lot of fake Rs.500 and Rs.1000 notes that are in circulation. The majority in the public cannot understand the difference between fake and genuine notes which becomes a major problem. Now these fake notes are being used by the terrorist and similar gangs for the purpose of anti-national activities, which comes as a major threat to the country. The government has received information that the terrorist have been misusing the fake currency and are promoting black money.
Now it is a known fact that India has cash based economy and in this case the circulation of fake note surely would lead to greater threats. So to curb the circulation of fake notes in the country and to put an end to black money the government of India has taken this step to ban the existing Rs.500 and Rs.1000 notes in the country.
The situation now is that if you have an Rs.500 or Rs.1000 note than you cannot use it. You will have to get it exchanged for Rs.100 notes or the newly launched Rs.2000 and Rs.500 notes. You can exchange the notes from the nearest bank.
How much money will you get back when you submit higher domination notes?
You will get the exact amount of money that you have in the form of Rs.500 and Rs.1000 notes. Once to submit it to the bank you will be given the same amount.
Will you get back all in cash?
Currently the government of India has put a limitation in the cash withdrawal and exchange limit. You can exchange only Rs.4000 at a time. but then you can submit how much ever you want to your account. In a day you can exchnage Rs.4000.
Why will I not get the full amount in cash? And what if Rs.4000 is not enough for me?
Keeping in mind the objective of this decision, the restriction has been levied on the cash withdrawal. Now incase Rs.4000 is not enough then you may fulfill your money requirements by paying online or by a cheque. Internet banking, mobile wallets and others will work as normal.
What happens for people who do not have bank account or have only JDY account?
In case you don’t have a bank account, you can open an account in the nearest bank. And in case you have a JDY account then also you can opt for the exchange facilities.
Where to exchange the Rs.500 and Rs.1000 notes?
The notes can be exchanged in all the banks including Reserve Banks, all other Indian banks, and Head Post Offices and Sub-Post offices.
Also you need not go to your particular bank for exchanging the money. You can go to any bank but you will have to carry an ID proof (voters ID, Aadhaar card, Driving license, etc.). This option can be opted for exchange of amount up to Rs.4000.
Incase you have an amount more thn Rs.4000 then you have to go to the bnk where you have an account so that the extra amount can be credited to your account.
If I don’t have a bank account, can I use my relative or friend’s bank account to exchange the notes?
This is possible but for availing this option you need to get a permission letter from your friend or relative. This written permission has to be provide to the bank while exchanging of the notes, along with your ID proof.
Does the account holder needs to go to the bank for exchange or can a representative do it?
It is preferable that that the account holder visits the bank for exchange. But then in a where the account holder is not able to go you can send a representative with a written authorization from you. Also the representative has to carry his or her valid ID.
|S.No||Things Need to Know about Banned Currency Note Exchange||Detailed Information|
|1||ATM withdrawal limit till 18th November||Rs.2000 per card in a day, later the amount will be raised to Rs.4000 per day|
|2||Cheque or slip withdrawal limit till 24th November 10||Rs.1000 in a day and Rs.20000 in a week including ATM withdrawal|
|3||Deadline for exchanging notes||30th December 2016|
|4||ID proof required for exchange of notes||One of the following- Voter ID card, Driving License, Aadhar card, passport, PAN card|
The ATMs are currently are not active. Once they are active you will be able to withdraw money from them, but only up to the amount that has been mentioned above. Once they are made active you will also be able to deposit your Rs.500 and Rs.1000 notes in the Cash Deposit machines or the Cash Recyclers.
In case one is not able to exchange the notes before 30th of December then they can exchange it after that in the RBI branches with certain specified instructions that will be notified by RBI.
Are all the electronic payment modes active?
The government has put no limitation in the electonic payment modes and transfer modes. So you can freely use all non-cash modes of transaction including internet banking, IMPS, RTGS, mobile banks , etc.
What happens if I am currently not in India?
In case you are out of India but have Rs.500 or Rs.1000 notes in India then you can authorize a person in writing, and he or she will be allowed to deposit the notes o you bank account. The authorized person has to make sure that he or she is carry the authorization letter to the bank along with his or her valid ID.
Also in case you are an NRI who has a NRO account here, you can also deposit the Rs.500 and Rs.1000 notes in your account.
What does a foreigner do if he or she has the notes?
In case you are a foreigner and worried about what to do, then there is prvisions for you as well. You just need to carry a proof of your buying the Rs.500 notes and purchase foreign exchange equivalent to Rs.5000 with the Rs.500 and Rs.1000 notes that you have. This can be done in any airport.
What does one do in an emergency situation?
It was announced that till the 11th of November you could make use of the Rs.500 and Rs.1000 notes in paying hospital bills, buying railways tickets, buying bus tickets at government bus depots, and buying air tickets.
For any other information one may refer to www.rbi.org.in