Why are the 500 and 1000 Rs notes Banned in India?

  1. What is the Withdrawal of Legal Tender Character of existing 500 and Rs. 1000/- Bank Notes?

Simply put, it is a ban on the usage of the older currency notes of Rs. 500 and Rs. 1000 issued by the Reserve Bank of India.

  1. With what purpose is this scheme introduced?

The idea behind launching this scheme was to:

  • Stop the increased circulation of Fake Indian Currency
  • Fight Against Corruption by eradicating Black Money
  1. What are the actions being taken on 9th November?
  • It’s a non-business working day for banks
  • Banks will have to call back the older Rs. 500 & Rs. 1000 notes so that any client doesn’t receive them via ATM or any other mediums.
  • All the ATMs need to be reconfigured in a manner that it does not dispense the older Rs. 500 and Rs. 1000 notes in any condition for which the ATMs will remain close on both, 9th & 10th November 9, 2016
  • The Cash Deposit Machine will have to accept the older Rs 500 and Rs 1000 notes till December 30th according to the limits specified by RBI
  • The Mahatma Gandhi (New) series Notes need to be issued via counter only until the RBI gives instructions for its dispense via ATM
  1. What is the Exchange Policy for the Older Currency Notes to the Newer Currency Notes?
  • Per day per person, a value of Rs. 4000 (older Rs. 500 & Rs. 1000 notes) can be exchanged in the bank with the same value of valid older or newer currency notes. This is to be done via a requisition slip and a proof of identity
  • There’s no limit in depositing the older Rs. 500 & Rs. 1000 notes to the account maintained with the bank by the person
  • The corresponding value of the older Rs 500 and Rs 1000 notes can be credited to your own bank account or a third party bank account when presented with a valid identity proof and authorization letter according to standard banking procedure
  • From the counter, the cash withdrawal limit has been restricted to Rs. 10,000 per day and Rs. 20,000 per week
  • No restriction on any transaction or usage using non-cash methods
  • Withdrawal from ATM has been restricted to Rs. 2000 per day per card up to 18th November and then will be raised to Rs. 4000 per day per card
  1. 4000 doesn’t meet my need. What’s the solution?

Please use non-cash method of payments.

  1. I don’t have a bank account. What do I do?

Open a Bank Account.

  1. Where all is it possible to exchange the currency notes?

The exchange facilities are available at the following hubs:

  • Issue Offices of RBI
  • Head Post Office or Sub-Post Office
  • Branches of Commercial Banks & State co-op Banks
  • Branches of RRBs & UCBs
  1. Am I allowed to go to any branches?

You can go to any branch, basically. But always carry a valid identity proof.

  1. Can I use my friend’s or relative’s bank account?

Yes, you can. You’ll need their permission in writing and your valid identity proof.

  1. Can I send someone to do the process on my behalf?

Yes, you can. You’ll have to provide a written permission to him/her and he/she will have to carry his/her identity proof.

  1. By when should I get rid of all older currency notes?

By 30th December, 2016.

  1. What is valid in proof of identity?

The following documents will be considered valid for a proof of identity:

  • Driving License
  • Voter ID Card
  • Aadhar Card
  • Pass Port
  • PAN Card
  • Identity Card Issued by Government Department & Public Sector Unit to its Staff
  • NREGA Card
  1. Where all are the older currency notes valid?

It’s valid at the below given places till 72 hours from the date and time of notification:

  • Government Hospitals
  • Government Bus Stands
  • Railway Stations
  • Airports
  • Petrol Pumps
  1. Where can I get additional information and whom can I contact regarding this scheme?

For more information, please visit the RBI website at http://www.rbi.org.in

RBI has opened a control room as well to help both, banks and the citizens. You can get in touch with them via:

Email id: bankquery@rbi.org.in
Telephone No: 022 22602804 / 022 22602944

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