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Rs. 500 and Rs.1000 notes scrapped

Here are the important points for scrapping the Rs. 500 and Rs. 1000 notes:

Here are the highlights:

  • Corruption and black money are diseases rooted in this country, they are obstacles to our success. It is due to these black money and money laundering that terrorism gets sponsored
  • Already schemes for retrieving back black money have been taken. A voluntary disclosure scheme for undeclared money saw a good response. A Special Investigating Team is making progress to identify who has sent money abroad. 
  • 1.25 lakh crores of black money has been recovered. 
  • A new step in this direction - From now on, Rs. 500 and Rs. 1000  notes will not be used.
  • However, here are what people can do with your existing Rs. 500 and Rs. 1000 notes -
  1. The Rs. 500 and 1000 notes can be tendered at the RBI office or any branch and obtain value thereof by credit into your respective bank accounts. This will be available from November 10 to close of banking hours on December 30, 2016 without any limit.
  2. The value credited to your bank account can be freely used by issue of cheques or by remitting through various electronic modes of transfer like NEFT, RTGS, IMPS, mobile banking, internet banking etc
  3. Notes of value up to Rs 4,000 per person can be exchanged for cash over the counter of any bank branch, head post office or sub post office. Carry a valid proof of identity for availing this exchange facility.

  • Here’s what you can do till November 11 midnight:

  1. Government hospitals will continue to accept old Rs 500 and Rs 1000 notes for payment
  2. Railway ticket booking, ticket counters of government buses and airline ticket counters at airports will accept the old notes for purchase of tickets.
  3.  Old Rs 500 and Rs 1000 notes will be accepted at:
  1.  Petrol, diesel and gas stations authorised by public sector oil companies
  2. Consumer co-operative stores authorised by State or Central government
  3. Milk booths authorised by State governments
  4. Crematoria and burial grounds
  • ATMs –
  1. All ATMs will stay closed on 9 November, few will stay closed on 10 November to facilitate recalibration
  2. All ATMs will open from 11 November to dispense bank notes of only Rs. 50 and Rs. 100 denominations
  3. Banks have been advised to provide all cash withdrawal transactions at their ATMs free of cost to their customers till December 30, 2016.
  4. Banks will fix a limit of Rs 2000/- per day per card withdrawal limit at ATMs, for all customers, till November 18, 2016.
  5. The limits shall be raised to Rs 4,000 per day per card from November 19, 2016.
  • When will banks reopen?
  1. All banks are closed on November 9.
  2. Till the end of November 24, 2016, all cash withdrawals from bank accounts, over the bank counters, will be restricted to a limited amount of Rs 10,000 per day subject to an overall limit of Rs 20,000 a week. These limits will be reviewed after that.
  • If you are not able to exchange the notes by December 30, you will be given an opportunity to do so at specified offices of the Reserve Bank or such other facility until a later date as may be specified by the Reserve Bank by March 31, 2017 by submitting a declaration form
  • The existing valid currencies are Notes of one hundred, fifty, twenty, ten, five, two and one rupee and all coins
  • From November 10 onwards, RBI will start issuing the new Rs 500 and Rs 2000 notes.
  • There is no restriction of any kind on non-cash payments by cheques, demand drafts, debit or credit cards and electronic fund transfer.
  • For tourists and international air travellers, arrangements will be made at international airports for arriving and departing passengers who have Rs 500 or Rs 1000 notes of not more than Rs 5,000, to exchange them for new notes or other legal tender. Foreign tourists will be able to exchange foreign currency or old notes of not more than Rs 5000 into legal tender.
  • RBI is all set to issue a new Rs 500 denomination banknotes in Mahatma Gandhi (New) Series with inset letter ‘E’. The central bank will also issue two sets of Rs 2000 notes, one with the inset letter ‘R’ and one without the inset letter. Both will be legal tender money.