Before getting into any kind of reasons on the ban of 500 and 1000 rupees currency notes, let us read the brief of the notification issued by the Reserve Bank of India (RBI) dated 08.11.2016 on the procedure to be followed by you, transition period available and restoring of the normal functioning of the banking system.
So keep calm, and read on.
In this article, we will read the summary of the notification, which will help you to get clarified on the Government actions.
1. Withdrawal of EXISTING Rs. 500/- & Rs. 1000/- notes
- RBI vide its official gazette notification no. 2652 has banned the legal status of Rs. 500 & Rs. 1000 notes (hereinafter referred as “existing notes”) with effect from 09.11.2016.
- RBI will issue “new series of Bank Notes called Mahatma Gandhi (New) Series” soonest with certain specifications distinguishing them from existing pattern/ series of notes.
- NOTE: Public can exchange the existing notes through bank branches with Bank Notes in other valid denominations or depositing the existing notes for crediting to their accounts, up to and including December 30, 2016.
- This implies that you have the time period of 50 days to get your existing notes exchanged with the bank. Either you will get the cash in hand (with certain terms & conditions) as explained later or you will get the money credited to your respective bank account.
EXCHANGE OF NOTES WILL BE KEPT AT HIGH PRIORITY BY ALL BANK BRANCHES. So, do not worry.
2. Actions on 09.11.2016
- All banks will remain closed on 09.11.2016 to the public. However, they will be functioning internally for facilitating the arrangements for the exchange of existing currency notes.
WHAT ABOUT THE EXISTING NOTES IN ATMS ETC?
- The existing notes already stalked in: ATMs, Cash Deposit Machines, Cash Recyclers, Coin Vending Machines, any other cash dispensing/receiving machine, CIT Companies and Business Correspondents attached to the branch will have to be called back forthwith.This means that all the money stocked in above machines etc will be withdrawn back to the respective banks/branches.
- Banks will stop their branches from issuing the existing notes any further from 09.11.2016 onwards.
- All ATMs, Cash Deposit Machines, Cash Recyclers and any other machine used for receipt and payment of cash shall be shut on 9th and 10th November 2016.
- Banks will be issuing notes of Rs. 100/- & Rs. 50/- denominations only vide ATMs & cash dispensing machines from 11.11.2016.
3. Actions on 10.11.2016
- Banks will function normally from 10.11.2016.
- NOTE: ONLY THE ATMs ETC WILL STAY CLOSED ON 09.11.2016 & 10.11.2016. HOWEVER, BANK WILL FUNCTION NORMALLY FROM 10.11.2016 AND YOU CAN GET THE EXISTING NOTES EXCHANGED OVER THE COUNTERS.
- ATMs and other cash dispensing machines will start functioning from 11.11.2016.
- Do not worry at all. The banks have been instructed to deliver utmost cooperation for the exchange of existing notes, even if they have to work for additional hours. So do not panic, you have enough time and resources to get your money exchanged.
4. MOST IMPORTANTLY – CALL TO ACTION
- The existing notes held by you can be exchanged at any Issue Office of the Reserve Bank or any branch of public sector banks, private sector banks, and foreign banks, Regional Rural Banks, Urban Cooperative Banks and State Cooperative Banks.
Up to 30.12.2016 subject to the below-mentioned conditions:
- Limit of the aggregate value of Rs. 4000 or below: The existing banknotes can be exchanged up to Rs. 4000 or below with a requisition slip in the format specified by the Reserve Bank and proof of identity.This limit will be revised after 15 days from the date of issue of this notification, where necessary.
- No limit in case of credit in bank accounts: No limit quantity or value of the specified bank notes to be credited to the account maintained with the bank by a person provided you have the KYC in place. In case you do not have KYC (Know Your Customer) norms complete, the maximum may be deposited will be Rs. 50,000/-
- The existing notes held by the bank account holder can be credited to their accounts with standard banking procedure and on the production of valid proof of identity
- The existing notes held by the bank account holder can be credited to a third party account, provided specific authorization therefor accorded by the third party is presented to the bank, following standard banking procedure and on the production of valid proof of identity of the person actually tendering the money.
- Limit on over the counter withdrawal: Cash withdrawal from a bank account over the counter shall be restricted to Rs. 10,000/- per day subject to an overall limit of ₹ 20,000/- a week from the date of the notification until the end of business hours on 24th November, 2016, after which these limits shall be reviewed;
- No restriction on noncash payment modes: There shall be no restriction on the use of any non-cash method of operating the account of a person including cheques, demand drafts, credit or debit cards, mobile wallets and electronic fund transfer mechanisms or the like;
- Restriction on ATM withdrawal: The withdrawal from ATMs) shall be restricted to ₹ 2,000 per day per card up to 18th November 2016 and the limit shall be raised to ₹ 4,000 per day per card from 19th November 2016;In case you are unable to deposit or exchange your money up to 30.12.2016 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 it.
Banks are available at your service to facilitate the entire process. Of course, there are limits applied on ATM withdrawal etc but you can always opt for the noncash modes of transactions.
Undoubtedly this is a difficult situation for the commoners who are unaware of these norms. It is our duty to educate people around us and explain them the remedies and implications of the same.
Instead of becoming part of the unnecessary chaos, educate yourself with the above norms and help each other to make greater India for a better tomorrow.