Ban on Rs.500/1000 notes: 8 things you should know

Ban on Rs.500/1000 notes: 8 things you should know

Govt has decided to discontinue for legal tender character of high denomination bank notes of Rs 500 and Rs 1000. In other words its stated that such notes are not be a legal tender from midnight of November 8,2016. This decision is made to curb financing of terrorism through the proceeds of Fake Indian currency notes and for eliminating Black Money. Key takeaways of decision are given here under.

It possible to exchange old denomination notes of Rs 500 and rs 1000 at any 19 offices of the RBI or any other bank branches or at any Head Post Office or Sub Post Office from 10th November onwards till 30th December 2016, RBI is said to issue two new notes of Rs 2000 and Rs 500.

  1. You can go for any bank branch with proper validity identity proof to exchange of notes upto Rs 4000 in exchange of currency in excess of Rs 4000(in denomination of Rs 500 or Rs 1000) which shall be allowed by a way of credit of money into your bank account only.
  2. Withdrawal from ATMs shall be restricted to rs.2000 per day upto 18th November, 2016. Limit shall be raised upto Rs.4000 per day per card from 19th November, 2016. 
  3. You can withdraw cash against withdrawal slip or cheque to ceiling of Rs 10,000 in day with overall limit of Rs 20,000 in a week (including withdrawals from ATMs) upto 24th November 2016.
  4. Its said that there is no restriction on any kind of payments by demand drafts, cheques, mobile wallets or credit cards or debits and electronic fund transfer.
  5. Existing notes of Rs.500/1000 which can be used till 11th November 2016 for payment in any government hospitals to purchase bus tickets at government bus stands, railway stations train tickets, air tickets at airports, purchase of milk, consumable goods at Govt.authorized booths, petrol or diesel or for payment at crematoria and burial grounds or exchange foreign currency by foreign tourists. 
  6. 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 authorization.
  7. All ATMs, Cash Deposit Machines, Cash Recyclers and any other machine used for receipt and payment of cash shall be shut on 9th and 10th November, 2016.Banks and Government Treasuries will be closed on 9th November, 2016.