FAQs on Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of Rs.500/- and Rs.1000/-

November 9, 2016 by

 

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  1. Why is this scheme introduced?

This is necessitated to tackle counterfeiting Indian banknotes, to effectively nullify black money hoarded in cash and curb funding of terrorism with fake notes.

  1. What is this scheme?

The legal tender character of the existing bank notes 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issued by the Reserve bank of India till November 8, 2016 (hereinafter referred to as Specified Bank Notes) stands withdrawn.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.

  1. How much value will I get?

You will get value for the entire volume of notes tendered at the bank branches / RBI offices.

  1. Can I get all in cash?

No. You will get upto Rs 4,000 per person in cash irrespective of the size of tender and anything over and above that will be receivable by way of credit to bank account.

Public are advised to present a valid proof of identity for availing this exchange facility.

  1. Rs 4000 cash is insufficient for my need. What to do?

You can use balances in bank accounts to pay for other requirements by cheque or through various electronic modes of transfer like NEFT, RTGS, IMPS, mobile banking, internet banking etc.

  1. Where can I go to exchange the notes?

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.

  1. Need I go to my bank branch only?

For exchange upto Rs 4,000 in cash you may go to any bank branch with valid identity proof.

For exchange over Rs 4,000, 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.

  1. Should I go to bank personally or can I send the notes through my representative?

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 authorisation. The representative should produce authority letter and his/her valid identity proof while tendering the notes.

  1. Can I withdraw from ATM?

All ATMs and other cash machines will remain shut on November 9, 2016 to facilitate recalibration. When ready, they will be reactivated and cash withdrawals from ATMs will be restricted to Rs.2,000 per day per card up to November 18, 2016 and the limits shall be raised to Rs.4000 per day per card from November 19, 2016.

  1. Can I withdraw cash against cheque?

Yes, you can withdraw cash against withdrawal slip or cheque subject to ceiling of Rs 10,000 in a day within an overall limit of Rs 20,000 in a week (including withdrawals from ATMs) from November 9, 2016 till end of business on November 24, 2016. The limits will be reviewed after this.

  1. How much time do I have to exchange the notes?

The scheme closes on 30 December, 2016. The Specified bank notes can be exchanged at branches of commercial banks, Regional Rural Banks, Urban Cooperative banks, State Cooperative Banks and RBI till 30 December, 2016.

Any person who is unable to exchange or deposit the specified banknotes in their bank accounts on or before December 30, 2016 shall be given an opportunity to do so at specified offices of the Reserve Bank or such other facility until a later date as may be specified by the Reserve Bank.

  1. I have emergency needs of cash (hospitalisation, travel, life saving medicines) then what I should do?

You can use the The Specified Banknotes for paying for your hospitalisation 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.