The Government of India recently withdrew the legal validity of Rs 500 and Rs 1,000 currency notes. This has led to chaos in the Country, with lots of questions running in the minds of people. The Reserve Bank of India has been issuing various answers to clarify confusions among people.
We have explained below the questions answered by RBI for your quick and easy reference.
1. Why has the Government introduced this scheme?
The fake currency in higher denominations of cash has increased in the recent past. The fake notes are used for illegal and antinational activities. High denomination notes have been misused for purposes of hoarding black money by terrorists and other groups who intend to purposely execute fraudulent transactions. India being one of the largest cash economies in the world, has been suffering hugely on this account.
It is for this reason that Fake Indian Currency Notes (FICN) in denominations of Rs 500 and Rs 1,000 have been discontinued with effect from November 8th 2016.
2. What is this scheme?
The legality of the existing bank notes in denomination of Rs 500 and Rs 1,000 issued by the RBI till November 8th, 2016 has been withdrawn.
In consequence, these bank notes cannot be used for transacting business and/or store of value for future use. These notes can be exchanged at:
i) any of the 19 offices of the RBI or
ii) at any of the bank branches
iii) or at any Head Post office or Sub-post Office.
3. If I exchange my money, how much value will I get?
You will get value for the entire volume of notes exchanged at the bank branches / RBI offices / post office.
4. Can I get all the currency I exchange, in cash?
No. As per RBI regulation, one person can only exchange up to 4,500 INR across any bank across India. Anything over and above Rs 4,500 can be deposited by the customer in their saving/ current account.
You need to show a valid Identity proof for exchanging cash with any bank. IDs accepted by banks includes 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.
5. Rs 4,500 is insufficient for my need. What do I do?
You can use balances in bank accounts to pay for purchases by cheque, or through online banking, mobile wallets, IMPS etc.
6. What if I don’t have any bank account?
A bank account can always be opened with relevant KYC documents, however exchange can also be done by submitting a valid ID proof at any bank all over India.
7. Need I go to my bank’s branch only?
No, you can go to any branch of any bank all over India. However, if you wish to exchange more than Rs 4,500, you should go to your branch or any other branch of your bank, as the money will be deposited in your bank account.
If you have no other choice but to go to any other bank’s branch for exchanging more than Rs 4,500, you can carry your bank account details so that the other bank can transfer money to your account (please note that you should carry valid ID proof for this purpose).
8. I have no account but my relative/friend has an account, can I still get my notes exchanged?
Yes, you can do that if the relative or friend gives you a written permission for the same. At the bank, you need to show evidence of this permission along with a valid identity or address proof to get the notes exchanged.
9. Should I go to the bank personally or can I send the notes through a representative?
Personal visit to the branch is preferable. In case not possible, a representative with a written declaration by you along with their identity proof can get the notes exchanged.
10. Can I withdraw from ATM?
You can withdraw up to a maximum of Rs 2,500 per card per day up to 18th November, 2016. This limit will be revised to Rs 4,000 from 19th November, 2016 onwards.
11. Can I withdraw cash against cheque?
Yes, you withdraw through cheque subject to an overall limit of Rs 24,000 for a week (including withdrawals from ATM), up to 24th November, after which this limit shall be reviewed.
12. Can I deposit money through ATMs, cash deposit machines?
Yes, you can deposit money through ATMs or cash deposit machines.
13. Can I use electronic mode for transferring money?
Yes, payments through RTGS, NEFT, mobile banking, IMPS, internet banking, mobile wallets etc can be made and there is no cap on them.
14. How much time do I have to exchange the notes?
The scheme closes on December 30th, 2016.
For those who are unable to exchange their currency till then, will get an opportunity to exchange their currency at specified RBI offices (more clarification on this will be communicated by RBI in due course of time)
15. I am not in India right now, what do I do?
You can authorise anyone in writing and such person can exchange Rs 500 and Rs 1,000 notes on your behalf by showing the authorisation letter and a valid ID proof.
16. I am a foreign tourist and have these notes. What do I do?
You can exchange upto Rs 5,000 at airport exchange counters till November 14th 2016, with proof of purchase.