In a bid to fight against the corruption, fake currency and black money, Prime Minister Narendra Modi on Tuesday announced that Govt is banning use of Rs 500 and Rs 1,000 notes with effect from 9th November, 2016. However, there will not be any change for other denomination notes.
A new series of Bank Notes called Mahatma Gandhi (New) Series having different size and design, highlighting the cultural heritage and scientific achievements of the country, will be issued. However, there is no need to be panic, as PM Modi says, “Your money will remain yours. You need have no worry on this point.” One can exchange them within next 50 days i.e; from 10th November to 30th December 2016.
Any person who is unable to exchange or deposit the specified banknotes in their bank accounts on or before December 30, 2016 shall 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.
How to Exchange Old Rs 500 & Rs 1000 Indian Currency Notes?
One can exchange old Rs 500 and Rs 1,000 notes by following means:
- The Rs 500 & Rs 1000 notes can be deposited in any Issue Office of the Reserve Bank or any branch of public sector banks, private sector banks, foreign banks, Regional Rural Banks, Urban Cooperative Banks and State Cooperative Banks or in any post office branches.
- The Rs 500 and Rs 1000 notes can also be exchanged with lower denomination currency notes or higher denomination note of Rs 2000 at designated banks and post offices by presenting any of the following government identity proofs.
- You will get upto Rs 4000 per person in cash exchange irrespective of the size of tender and anything over and above that will be receivable by way of credit to bank account.
Valid Identity Proof for Exchanging Old Rs 500 & Rs 1000 Currency Notes:
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
Where can I still use my old Rs 500, Rs 1000 notes?
Old Rs 500 and Rs 1,000 notes can be used for following purposes until 14 November midnight, as per the finance ministry:
- Government hospitals
- Government-run cooperative shops
- Air-ticket counters
- Milk booths
- Petrol stations
- Burial grounds
- International airports
- To buy tickets at railway stations
- For metro trains
- To pay for medicines in government and private medical shops
- Cooking gas cylinders
- By foreign tourists
- Cash withdrawals from bank accounts, over the bank counters, is restricted to Rs 10,000 per day subject to an overall limit of Rs 20,000 a week from November 9, 2016 till end of business on November 24, 2016.
- ATM withdrawals is restricted to Rs 2,000 per day per card up to November 18, 2016 and the limits shall be raised to Rs 4000 per day per card from November 19, 2016.
- There are no restrictions on card payment, cheque, demand draft, electronic funds transfer [NEFT/RTGS].
New Rs 500 and Rs 2000 Notes:
A proposal for new Rs 500 and Rs 2000 rupee banknotes has been cleared by the Reserve Bank of India which will be issued from 10th November. The Reserve Bank of India will issue Rs 500 denomination banknotes in Mahatma Gandhi (New) Series with inset letter ‘E’ and Rs 2000 denomination banknotes with the inset letter ‘R’, and also bearing the signature of Dr. Urjit R. Patel Governor, Reserve Bank of India, the year of printing ‘2016’ printed on the reverse of the Banknote.