This is what you need to do right away if you have Rs 1000 or Rs 500 notes

This is what you need to do right away if you have Rs 1000 or Rs 500 notes

Prime Minister Narendra Modi announced that currencies with denomination of Rs 1000 and Rs 500 will not be legal tender from midnight, here are a few things you can do before it's too late.

While the move was sudden, the government made sure that there are certain provisions to limit the problems faced by the common man. The Prime Minister has asked the people to stay calm and take the carefully-placed steps to make a smooth transition to a new black-money free India.

  • Deposit old notes of Rs 1000 and Rs 500 in banks or post office accounts from 10th November till 30th December 2016 without any limit.
  • There will be a limit on withdrawal of Rs 10,000 per day and Rs 20,000 per week. The limit will be increased in coming days.
  • No restriction of any kind on non-cash payments by cheques, demand drafts, debit or credit cards and electronic fund transfer.
  • Exchange old notes of Rs 500 or Rs 1000 at any bank, headpost office or sub post office while showing ID proof. The limit for this is Rs 4000 upto 24th November
  • Check out RBI notification for more details

Here are the official guidlines launched by the Ministry of Finance, Government of India:

(i) Old High Denomination Bank Notes may be deposited byindividuals/persons into their bank accounts and/or exchanged in bank branchesor Issue Offices of RBI till the close of business hours on 30th December,2016.

(ii) Old High Denomination Bank Notes of aggregate value ofRs.4,000/- only or below held by a person can be exchanged by him/her at any bankbranch or Issue Office of Reserve Bank of India for any denominationof bank notes having legal tender character, provided a Requisition Slipas per format to be specified by RBI is presented with proof of identity andalong with the Old High Denomination Bank Notes. Similar facilities will alsobe made available in Post Offices.

(iii) The limit of Rs.4,000/- for exchanging Old HighDenomination Bank Notes at bank branches or at issue offices of Reserve Bank of Indiawill be reviewed after 15 days and appropriate notification issued, as may benecessary.

(iv) There will not be any limit on the quantity or value ofOld High Denomination Bank Notes to be credited to the account of thetenderer

maintained with the bank, where the Old High DenominationBank Notes are tendered. However, in accounts where compliance with extantKnow Your Customer (KYC) norms is not complete, a maximum value ofRs.50,000/- of Old High Denomination Bank Notes can be deposited.

(v) The equivalent value of the Old High Denomination BankNotes tendered can be credited to an account maintained by the tenderer at anybank in accordance with standard banking procedure and on productionof valid proof of Identity.

(vi) The equivalent value of the Old High Denomination BankNotes tendered can be credited to a third party account, provided specificauthorisation therefor accorded by the said account holder is presented to thebank, following standard banking procedure and on production of valid proofof Identity of the person actually tendering.

(vii) Cash withdrawal from a bank account, over the counterwill be restricted to Rs.10,000/- subject to an overall limit of Rs. 20,000/- in aweek for the first fortnight, i.e., until the end of business hours on November24, 2016.

(viii) There will be no restriction on the use of anynon-cash method of operating the account which will include cheques, demand drafts,credit/debit cards, mobile wallets and electronic fund transfer mechanisms.

(ix) Withdrawal from ATMs would be restricted to Rs.2,000per day per card up to November 18, 2016. The limit will be raised to Rs.4,000per day per card from November 19, 2016 onwards.

(x) For those who are unable to exchange their Old HighDenomination Bank Notes or deposit the same in their bank accounts on orbefore December 30, 2016, an opportunity will be given to them to do so atspecified offices of the RBI on later dates along with necessary documentation as maybe specified by the Reserve Bank of India.

(xi) Instruction is also being issued for closure of banksand Government Treasuries, on 9th November, 2016.

(xii) In addition, all ATMs, Cash Deposit Machines, CashRecyclers and any other machine used for receipt and payment of cash will remainshut on 9th and 10th November, 2016.

(xiii) The bank branches and Government Treasuries willfunction from 10th November, 2016.

(xiv) To avoid inconvenience to the public for the first 72Hours, Old High Denomination Bank Notes will continue to be accepted atGovernment Hospitals and pharmacies in these hospitals/Railwayticketing counters/ticket counters of Government/Public Sector Undertaking buses andairline ticketing counters at airports; for purchases at consumer co-operativesocieties, at milk booths, at crematoria/burial grounds, at petrol/diesel/gasstations of Public Sector Oil Marketing Companies and for arriving anddeparting passengers at international airports and for foreign tourists to exchangeforeign currency at airports up to a specified amount.