The government on Tuesday night announced that Rs 500 and Rs 1,000 will be no longer legal tender after November 8, midnight. Here are the details you need to know:
Why is this scheme?
The incidence of fake Indian currency notes in higher denomination has increased. For ordinary persons, the fake notes look similar to genuine notes, even though no security feature has been copied. The fake notes are used for anti-national and illegal activities. High denomination notes have been misused by terrorists and for hoarding black money. India remains a cash-based economy. Hence, the circulation of Fake Indian Currency Notes continues to be a menace. In order to contain the rising incidence of fake notes and black money, the scheme to withdraw has been introduced.
What is this scheme?
The legal tender character of the notes in denominations of Rs 500 and Rs 1000 stands withdrawn. The old notes can be exchanged for full value at any of the 19 offices of the Reserve Bank of India or at any of the bank branches or at any Head Post Office or Sub-Post Office.
Can I get all in cash?
No. You will get up to Rs 4000 per person in cash irrespective of the size of tender and anything over and above that will be receivable by way of credit to bank account.
Rs 4000 cash is insufficient for my need. What to do?
You can use the balance in bank accounts to pay for other requirements by cheque or through electronic means of payments.
Need I go to my bank branch only?
For exchange upto 4000 in cash you may go to any bank branch with valid identity proof.
For exchange over 4000, which will be accorded through credit to bank account only, you may go to the branch where you have an account or to any other branch of the same bank.
In case you want to go to a branch of any other bank where you are not maintaining an account, you will have to furnish valid identity proof and bank account details required for electronic fund transfer to your account.
Can I withdraw from ATM?
It may take a while for the banks to recalibrate their ATMs. Once the ATMs are functional, you can withdraw up to a maximum of Rs 2,000 per card per day from ATMs till November 18, 2016. The limit will be raised to Rs 4000 per day per card from November 19 onwards.
Can I withdraw cash against cheque?
Yes, you can withdraw cash against withdrawal slip or cheque subject to ceiling of Rs 10,000 in a day within an overall limit of Rs 20,000 in a week (including withdrawals from ATMs) for the first fortnight or up to November 24, 2016.
Should I go to bank personally or can I send the notes through my representative?
It is better if you can visit the branch. In case you are sending a representative, do give him an express mandate, that is, a written authorisation. While tendering the notes, this representative will have to produce the authorisation letter and a valid identity proof.
What is a valid proof of identity?
Valid identity proof is any of the following: Aadhaar card, driving licence, Voter ID card, Passport, NREGA card, PAN card, identity card issued by government department, public sector unit to its staff.
How much time do I have to exchange the notes?
The scheme closes on December 30, 2016. After that the amount can be deposited in specified offices of the RBI along with necessary documentation.
I am a foreign tourist, I have these notes. What should I do?
You can purchase foreign exchange equivalent to Rs 5,000 using these old notes at airport exchange counters within 72 hours of the notification, provided you present proof of purchasing the notes.
If I have emergency need for cash (hospitalisation, travel, life saving medicines) then what I should do?
You can use the old notes for paying your hospitalisation charges at government hospitals, for purchasing bus tickets at government bus stands, for travel by state government or state PSU buses, train tickets at railway stations, and air tickets at airports, within 72 hours of the notification.
I need more information on this. What do I do?
Photograph: PTI Photo