On 9th November, PM Narendra Modi announced that Rs 500 and Rs 1000 notes will no longer be considered as legal tender. This was a huge step taken against black money hoarders and terrorism. Common people were most affected by this decision as their daily transaction includes 500 and 1000 rupees notes. Although there was an option to get those notes exchanged from nearby banks or post offices but doing so isn’t very easy. You can still use your 500 and 1000 rupees notes for exchange as well as for deposit.
To clear your doubts and make you aware about the measures taken by government, we have compiled a list of less known information. Here are few things you should know about.
Demonetisation Rs. 1000 and Rs. 500 Scheme Frequently Asked Questions
Question: Why is this scheme introduced ?
Answer: This scheme has been introduced to make existing fake currency notes of denominations of Rs. 500 and Rs. 1000 illegal. This will wipe out all the existing black money in the market.
Question: What is this scheme?
Answer: All existing Rs. 500 and Rs. 1000 notes issued by the RBI have been withdrawn, meaning you can longer use them. Instead, you can get your existing notes exchanged for new Rs. 500 and Rs. 2000 notes at any registered banks.
- People can exchange up to Rs. 2000 over the counter once during this period.
- Every week, you can withdraw up to Rs. 24000 by way of cheques, or Rs. 4500 by way of ATM cards.
Note that this does not affect online payments and transactions in any way. You can continue to buy and pay for transactions via netbanking and debit/credit cards freely.
Question: How much value will I get ?
Answer: You will get the full value of notes tendered at the bank branches / RBI offices.
Question: Can I get all in cash ?
Answer: No. You will get upto ₹2000 per person in cash exchange and anything over and above that will be receivable by way of credit to bank account.
Question: Where can I go to exchange the notes?
Answer: Exchange facility is available at all Issue Offices of RBI and branches of commercial banks, RRBS, Co-operative banks or at any Head Post Office or Sub-Post Office.
Question: Can I go to any branch of my bank?
Answer: Yes you can go to any branch of your bank. Carry a valid identity proof to ensure a smooth process.
Question: Can I go to any branch of any other bank?
Answer: Yes, you can go to any branch of any other bank. Carry a valid identity proof to ensure a smooth process.
Question: Can I exchange ₹ 2000 more than once?
Answer: No. You can exchange upto ₹ 2000 only once.
Question: I have no account but my relative, friend has an account. So can I get my notes exchanged into that account?
Answer: Yes, you can do that if the account holder relative or 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.
Question: Should I go to bank personally or can I send the notes through my representative?
Answer: 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 a written authorisation.
Question: Can I withdraw from ATM?
Answer: ATM recalibration is under process at the moment, so you can withdraw up to Rs. 2000 per withdrawal for now. After recalibration is complete, this limit will be extended to Rs. 2500 per withdrawal.
Question: What will be the levied ATM charges?
Answer: All ATM charges have been waived off for transactions between November 10, 2016 to December 30, 2016.
Question: Can I withdraw cash against cheque?
For Savings Bank account holders, there is a weekly limit of Rs. 24,000.
For Current account holders, there is a weekly limit of Rs. 50,000.
Question: Can I make use of electronic (NEFT/RTGS /IMPS/ Internet Banking / Mobile banking etc.) mode?
Answer: Yes, you can use these modes of transfer as usual, without any changes.
Question: How much time do I have to exchange the notes?
Answer: The scheme closes on December 30, 2016, for exchanges at bank branches. You can exchange notes at specified RBI offices up to March 31, 2016.
Question: I have emergency needs of cash (hospitalisation, travel, life saving medicines) then what I should do?
Answer: Till the November 24, 2016 midnight, specified banknotes can be used as under:
- for making payments in Government hospitals – treatment and pharmacies
- at railway ticketing counters
- ticket counters of Government or Public Sector Undertakings buses
- airline ticketing counters at airports for purchase of tickets
- for purchase of petrol, diesel and gas at the stations at authorized outlets
- at international airports, for arriving and departing passengers up to Rs. 5000
- for foreign tourists up to Rs. 5000
- pharmacy payments with a doctor’s prescription
- for payments on purchases LPG gas cylinders
- for making payments to catering services on board, during travel by rail
- for making payments towards any fees, charges, taxes or penalties to the Central or State Governments including Municipal and local bodies
- for making payments towards utility charges including water and electricity – only arrears or current charges are allowed, advance payments are not allowed
Question: Can I use the specified banknotes to settle outstanding in my loan account?
Answer: Yes. If the amount exceeds Rs. 50,000, you will have to produce a copy of your PAN in case it is not linked with your bank account.
Question: What is identity proof?
Answer: 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.
Question: Where can I get more information on this scheme?
Question: If I have a problem, whom should I approach?
Answer: You may approach the control room of RBI by email or on Telephone Nos 022 22602201/022 22602944.
So in case if you are still in a dilemma about exchanging or depositing the money in form of 500 and 1000 rupees notes then make sure you go through all the question and answers covered above. We hope that we were able to cover all the question and queries which we should.