RBI’s FAQ On Withdrawal of Rs.500 and Rs.1000 Notes And Available Remedies

Prime Minister Narendra Modi announced that the five hundred rupee and thousand rupee currency notes presently in use will no longer be legal tender from midnight of 8th November 2016.Read Frequently Asked Questions (FAQs) by Reserve Bank Of India on Withdrawal of Legal Tender Character of the Old High Denomination Bank Notes1. Why is this 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 antinational 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. In order to contain the rising incidence of fake notes and black money, the scheme to withdraw has been introduced.2. What is this scheme?The legal tender character of the notes in denominations of ₹ 500 and ₹ 1000 stands withdrawn. In consequence thereof withdrawn old high denomination (OHD) notes cannot be used for transacting business and/or store of value for future usage.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 at any of the bank branches or at any Head Post Office or Sub-Post Office.3. How much value will I get?You will get value for the entire volume of notes tendered at the bank branches / RBI offices.4. Can I get all in cash?No. You will get upto ₹4000 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.5. Why I cannot get the entire amount in cash when I have surrendered everything in cash?The Scheme of withdrawal of old high denomination(OHD) notes does not provide for it, given its objectives.6. ₹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 electronic means of payments such as Internet banking, mobile wallets, IMPS, credit/debit cards etc.7. 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.8. What if, 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.9. 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.10. Need I go to my bank branch only?For exchange upto 4000 in cash you may go to any bank branch with valid identity proof.For exchange over 4000, 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.In case you want to go to a branch of any other bank where you are not maintaining an account, you will have to furnish valid identity proof and bank account details required for electronic fund transfer to your account.11. Can I go to any branch of my bank?Yes you can go to any branch of your bank.12. 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 exchanged exceeds ₹4000.13. I have no account but my relative / friend has an account, can I get my notes exchanged into that account?Yes, you can do that if the account holder relative/friend etc gives you permission in writing. While exchanging, you should provide to the bank, evidence of permission given by the account holder and your valid identity proof.14. 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.15. 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 upto a maximum of ₹2,000/- per card per day upto 18th November, 2016. The limit will be raised to ₹4000/- per day per card from 19th November 2016 onwards.16. Can I withdraw cash against cheque?Yes, you can withdraw cash against withdrawal slip or cheque subject to ceiling of ₹10,000/- in a day within an overall limit of ₹20,000/- in a week (including withdrawals from ATMs) for the first fortnight i.e. upto 24th November 2016.17. Can I deposit withdrawn notes through ATMs, Cash Deposit Machine or cash Recycler?Yes, OHD notes can be...

RBI’s FAQ On Withdrawal of Rs.500 and Rs.1000 Notes And Available Remedies

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