In one, quick, out-of-the-blue stroke, the Modi government has rendered your existing Rs 500 and Rs 1000 currency notes worthless! And, that must have surely left you wondering what you will do with your stash of money in denominations of Rs 500 and Rs 1000. While there will be some inconvenience as the transition to the new notes happens, the great news is that there is NO NEED TO PANIC, provided, all your money is accounted for. Even Prime Minister Narendra Modi sought to reassure when he said in his address to the nation, “Your money will remain yours. You need have no worry on this point.”
There is a wide window available for you to exchange your older notes at the bank. Also, till November 11 midnight, there are a lot places where you can use your stock of Rs 500 and Rs 1000 notes. The government also announced that new Rs 500 and Rs 2000 currency notes will go into circulation starting November 10. Below is your full-check list of information on the government’s move – from how and where to exchange notes, to limits on withdrawal from ATMs and features of the new notes. This is a compilation of all you need to know, all at one place:
What can you do with your existing Rs 500 and Rs 1000 notes?
1) If you have the older Rs 500 and Rs 1000 notes, you can tender them at any office of the Reserve Bank or any bank branch and obtain value thereof by credit into your respective bank account. This window is available from November 10 till the close of banking hours on December 30, 2016 without any limit. This means you will have 50 days to deposit your notes.
2) The value credited to your bank account can be freely used by issue of cheques or by remitting through various electronic modes of transfer like NEFT, RTGS, IMPS, mobile banking, internet banking etc.
3) Notes of value up to Rs 4,000 per person can be exchanged for cash over the counter of any bank branch, head post office or sub post office. Carry a valid proof of identity for availing this exchange facility.
Where all can you use your existing Rs 500 and Rs 1000 notes for the next 72 hours (from November 9 to November 11 midnight)?
> For 72 hours, government hospitals will continue to accept old Rs 500 and Rs 1000 notes for payment
> For 72 hours, railway ticket booking, ticket counters of government buses and airline ticket counters at airports will accept the old notes for purchase of tickets.
> For 72 hours, old Rs 500 and Rs 1000 notes will be accepted at:
. Petrol, diesel and gas stations authorised by public sector oil companies
. Consumer co-operative stores authorised by State or Central government
. Milk booths authorised by State governments
. Crematoria and burial grounds
When will ATMs start functioning again? How much money can you withdraw?
1) All ATMs and other cash machines will remain shut on November 9, 2016 to facilitate recalibration and some may also be shut on November 10.
2) All ATMs are expected to resume functioning from November 11, 2016 upon their recalibration to dispense bank notes of only Rs 50 and Rs 100 denominations.
3) Banks have been advised to provide all cash withdrawal transactions at their ATMs free of cost to their customers till December 30, 2016.
4) Banks will fix a limit of Rs 2000/- per day per card withdrawal limit at ATMs, for all customers, till November 18, 2016.
5) The limits shall be raised to Rs 4,000 per day per card from November 19, 2016.
When will banks reopen and how much can you withdraw?
1) All banks are closed on November 9.
2) Till the end of November 24, 2016, all cash withdrawals from bank accounts, over the bank counters, will be restricted to a limited amount of Rs 10,000 per day subject to an overall limit of Rs 20,000 a week. These limits will be reviewed after that.
What if you are unable to exchange your old notes by December 30, 2016?
If you are unable to exchange or deposit the specified banknotes in your bank accounts on or before December 30, 2016, you will 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. PM Modi in his address has said that this extended deadline would be till March 31, 2017 and will need you to submit a declaration form.
Which currency is valid now?
Notes of one hundred, fifty, twenty, ten, five, two and one rupee and all coins will remain legal tender and will not be affected. From November 10 onwards, RBI will start issuing the new Rs 500 and Rs 2000 notes.
What about non-cash purchases and fund transfer?
There is no restriction of any kind on non-cash payments by cheques, demand drafts, debit or credit cards and electronic fund transfer.
What about tourists and international air travellers?
Arrangements will be made at international airports for arriving and departing passengers who have Rs 500 or Rs 1000 notes of not more than Rs 5,000, to exchange them for new notes or other legal tender. Foreign tourists will be able to exchange foreign currency or old notes of not more than Rs 5000 into legal tender.
RBI is all set to issue a new Rs 500 denomination banknotes in Mahatma Gandhi (New) Series with inset letter ‘E’. The central bank will also issue two sets of Rs 2000 notes, one with the inset letter ‘R’ and one without the inset letter. Both will be legal tender money.
For all other queries, keep a tab on the RBI website (rbi.org.in). You can also dial these Mumbai numbers: 022-22602201, 022-22602944.