09 November 2016: On Tuesday, National Defence Academy government has announced that the use of Rs 500 and Rs 1000 notes has been banned, in its fight against the dishonesty, black money, and fake currency. Once, the announced has completed, the RBI came with a ready table on the government’s move.
25 things to memorize how central government explains about the whole scheme
Why is the scheme?
The incidence of fake Indian currency notes in higher denomination has increased. For ordinary persons, the fake notes look similar to genuine notes, even though no security feature has been copied. The fake notes are used for anti-national and illegal activities. High denomination notes have been misused by terrorists and for hoarding black money. India remains a cash-based economy hence the circulation of Fake Indian Currency Notes continues to be a menace. To contain the rising incidence of fake notes and black money, the scheme to withdraw has been introduced.
What is this scheme?
The legal tender character of the notes in denominations of Rs 500 and Rs 1000 stands withdrawn. In consequence, there of withdrawn old high denomination (OHD) notes cannot be used for transacting business and store of value for future usage. The OHD notes can be exchanged for value at any of the 19 offices of the Reserve Bank of India or any of the bank branches or any Head Post Office or Sub-Post Office.
Can I get all the money in cash?
No. You will get up to Rs 4000 each person in cash irrespective of the size of tender and anything over and above that will be receivable by way of credit to a bank account.
How much value will I get?
You will get the value for the entire volume of notes tendered at the bank branches / RBI offices.
Rs 4000 cash is not sufficient for my need. So what to do?
You can use balances in bank accounts to pay for other requirements by cheque or through electronic means of payment such as Internet banking, mobile wallets, IMPS, credit/debit cards, etc.
Why can I not get the entire amount of cash when I have surrendered everything in cash?
The Scheme of withdrawal of high old denomination (OHD) notes does not provide for it, given its objectives.
What if I have only JDY account?
A JDY account holder can avail the exchange facility subject to the caps, and other laid down limits in accord with norms and procedures.
What if I don’t have any bank account?
You can always open a bank account by approaching a bank branch with necessary documents required for fulfilling the KYC requirements.
Where can I go to exchange the notes?
The exchange facility is available at all Issue Office of RBI and branches of commercial banks/RRBS/UCBs/State Co-op banks or any Head Post Office or Sub-Post Office.
Need I go to my bank branch only?
For exchange up to Rs 4000 in cash, you may go to any bank branch with valid identity proof. For exchange over RS 4000, which will be accorded through credit to Bank accounts only, you may go to the branch where you have an account or to any other branch of the same bank.
In case you want to go to a branch of any other bank where you do not maintain an account, you will have to furnish valid identity proof and bank account details required for electronic fund transfer to your account.
Can I go to any branch of any other bank?
Yes, you can go to any branch of any other bank. In that case, you have to furnish valid identity proof for exchange in cash; both valid identity proof and bank account details will be required for electronic fund transfer in case the amount to be transferred Rs 4000.
Can I go to any branch of my bank?
Yes, you can go to any branch of your bank.
Should I go to the 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 tending the notes.
I have no account, but my friend/ relative has an account, can I get my notes exchanged into that account?
Yes, you can do that if the account holder friend/ relative, etc. gives you permission in writing. While exchanging, you should provide to the bank, evidence of authority given by the account holder and your valid identity proof.
Can I withdraw cash against cheque?
Yes, you can withdraw cash against withdrawal slip or cheque subject to a ceiling of Rs 10,000/- in a day within an overall limit of Rs 20,000/- in a week (including withdrawals from ATMs) for the first fortnight i.e. up to 24th November 2016.
Can I withdraw from ATM?
It may take a while for the banks to recalibrate their ATMs. Once the ATMs are functional, you can withdraw from ATMs up to a maximum of Rs 2,000/- per card per day up to 18th November 2016. The limit will be raised to Rs 4,000/- per day per card from 19th November 2016 onwards.
Can I make use of electronic (NEFT/RTGS/IMPS/ the Internet Banking/ Mobile Banking etc.) mode?
You can use NEFT/RTGS/IMPS/Internet banking or any other electronic/ non-cash method of payment.
Can I deposit withdraw notes through ATMs, Cash Deposit Machine or cash Recycler?
Yes, OHD notes can be deposited in Cash Deposits machines/ Cash Recyclers.
How much time can I exchange the notes?
The scheme closes on 30th December 2016. The OHD banknotes can exchange at branches of commercial banks, Regional Rural Banks, Urban Cooperative Banks, State Cooperative Banks, and RBI till 30th December 2016.
For those who are unable o exchange their Old High Denomination Bank Notes on or before December 30, 2016, an opportunity will be given to them to do so at specified offices of the RBI, along with necessary documentation as many specified by the Reserve Bank of India.
I am right now not in India, what should I do?
If you have OHD banknotes in India, you may authorize in writing enabling another person in India to deposit the notes into your bank account. The person or authorised has to come to the bank branch with the OHD banknotes, the authority letter given by you and a valid identity proof (Valid Identity Proof is any of the following: Aadhaar Card, Driving License, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its Staff)
I am an NRI and hold NRO account; can the exchange value be deposited in my account?
Yes, you can deposit the OHD banknotes to your NRO account.
If I need emergency of cash like (travel, hospitalization, and life-saving medicines) then what should I do?
You can use the OHD notes for paying for your hospitalization 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.
A foreign tourist has these Indian notes. What should they do?
They can purchase foreign exchange equivalent to Rs 5,000 by using OHD notes at airport exchange counters within 72 hours after the notification, provided their present proof of purchasing the OHD notes.
What will be the proof of Identity?
The Identity should be Valid Identity Proof is any of the following: Driving License, Aadhaar Card, Pass Port, Voter ID Card, PAN Card, NREGA Card, Identity Card Issued by Government Department, and Public Sector Unit to its Staff.
Can I get more information on this Scheme?