Exchanging old high denomination currencies; all you need to know

November 10, 2016, 12:21 pm
Exchanging old high denomination currencies; all you need to know
BUSINESS
BUSINESS
Exchanging old high denomination currencies; all you need to know

Exchanging old high denomination currencies; all you need to know

In a bid to check the black money menace, the Center has demonetised old high denomination banknotes of 500 and 1000 from midnight of 8 November. From Thursday onwards, the public can exchange their old currencies from banks.

Below are the Reserve Bank of India guidelines and notification on exchanging the old high denomination currencies.

— Old high denomination bank notes may be deposited by individuals/persons into their bank accounts and/or exchanged in bank branches or Issue Offices of RBI till the close of business hours on 30 December, 2016.

— High denomination Notes of aggregate value of ₹ 4,000/- or below held by a person can be exchanged for any denomination of banknotes having legal tender character.

— The public is required to provide a Requisition Slip as per format to be specified by RBI, presented with proof of identity. Similar facilities will also be made available in Post Offices.

— The higher limit of ₹ 4,000/- will be reviewed after 15 days and appropriate notification will be issued by the RBI.

— There is no limit on the quantity or value money to be credited to the bank accounts. However, in accounts where compliance with extant Know Your Customer (KYC) norms is not complete, a maximum value of ₹ 50,000/- of Old High Denomination Bank Notes can be deposited.

— The equivalent value of the old notes tendered can be credited to an account maintained by the tenderer at any bank in accordance with standard banking procedure and on production of valid proof of Identity.

— The equivalent value of the old high denomination notes can be credited to a third party account also, provided specific authorisation, following standard banking procedure and on production of valid proof of Identity of the person actually tendering.

— Cash withdrawal from a bank account, over the counter will be restricted to ₹ 10,000/- subject to an overall limit of ₹ 20,000/- in a week for the first fortnight, i.e., until the end of business hours on November 24, 2016.

— There will be no restriction on the use of any non-cash method of operating the account which will include cheques, demand drafts, credit/debit cards, mobile wallets and electronic fund transfer mechanisms.

— Withdrawal from ATMs would be restricted to ₹ 2,000 per day per card up to 18 November, 2016. The limit will be raised to ₹ 4,000 per day per card from 19 November, 2016 onwards.

— For those who are unable to exchange their Old High Denomination Banknotes or deposit the same in their bank accounts on or before 30 December, 2016, an opportunity will be given to them to do so at specified offices of the RBI on later dates along with necessary documentation as may be specified by the Reserve Bank of India.

— Instruction is also being issued for closure of banks and Government Treasuries, on 9 November, 2016.

— In addition, all ATMs, Cash Deposit Machines, Cash Recyclers and any other machine used for receipt and payment of cash will remain shut on 9th and 10th November, 2016.

— The bank branches and Government Treasuries will function from 10 November, 2016.

— To avoid inconvenience to the public for the first 72 Hours, Old High Denomination Banknotes will continue to be accepted at Government Hospitals and pharmacies in these hospitals/Railway ticketing counters/ticket counters of Government/Public Sector Undertaking buses and airline ticketing counters at airports; for purchases at consumer co-operative societies, at milk booths, at crematoria/burial grounds, at petrol/diesel/gas stations of Public Sector Oil Marketing Companies and for arriving and departing passengers at international airports and for foreign tourists to exchange foreign currency at airports up to a specified amount.

Source: RBI