After the announcement by the Prime Minsiter, India’s central bank has issued a guide on how you can get rid of the old Rs 500, 1000 notes that you may have. Here is the FAQ’s released by RBI to better understand about Modi’s master-stroke.
1. Why this now?
There has been a rise in the incidence of fake Indian currency notes in higher denomination. More often that not, the common man fail to distinguish between original and fake notes. Fake notes are used for anti-national, illegal activities, misused by terrorists and for hoarding black money. As India remains cash based economy and there is a rise in the circulation of fake Indian currency notes, the withdrawal has been introduced to contain the fake note circulation and to hurt those who keep unaccounted money.
2. What exactly is this?
The legal tender character of the notes in denominations of 500 and 1000 stands withdrawn. In simple terms, all the 500 and 1000 rupee notes will be just paper, these cannot be used for transacting business and/or store of value for future usage.
3. How much is my Rs 500/1000 note worth now?
Your 500/1000 notes are worth its value till December 30, provided you deposit it in your bank account.
4. Can I get all in cash?
No. You will get up to Rs 4,000, per person, in cash and if you need more, you can get it credited to your bank account.
5. Why can I not get the entire amount in cash when I have surrendered everything in cash?
The scheme does not provide for it, given its objectives.
6. Rs 4,000 cash is insufficient for my need. What to do?
You can use mobile wallets, online payment methods, IMPS, debit/credit cards, and you can also pay by cheque.
7. What if I don’t have any bank account?
Don’t worry. Pick the bank of your choice, and get a bank account opened. Carry the necessary documents required for fulfilling the KYC requirements.
8. What if I have only a Jan Dhan account?
You can avail the exchange facility subject to the caps and other laid down limits in accord with norms and procedures.
9. Where can I go to exchange the notes?
You can exchange the notes at all Issue Offices of RBI and branches of commercial banks/RRBS/UCBs/State Co-op banks or at any Head Post Office or Sub-Post Office.
10. Will I have to go to my bank branch itself?
For exchange up to Rs 4,000 in cash you may go to any bank branch but do carry a valid identity proof.
For exchange over Rs 4,000, 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.
11. Can I go to any branch of my bank?
Yes, you can go to any branch of your bank.
12. Can I go to any branch of any other bank?
Yes, you can go to any branch of any other bank. But in this case, you have to furnish valid identity proof for exchange in cash; both valid identity proof and bank account details will be required for electronic fund transfer in case the amount to be exchanged exceeds Rs 4,000.
13. I have no bank account but my relative / friend has an account, can I get my notes exchanged into that account?
Yes, you can do that if the account holder, that is your relative / friend, gives you permission in writing. While exchanging, you need to show this proof and your valid identity card at the bank.
14. Should I go to bank personally or can I send the notes through my representative?
Personal visit to the branch is preferable. In case it is not possible for you to visit the branch you may send your representative with an express mandate i.e. a written authorisation. The representative should produce authority letter and his / her valid identity proof while tendering the notes.
15. Can I withdraw from ATM?
It may take a while for the bwhile for the banks to recalibrate their ATMs. Once the ATMs are functional, you can withdraw from ATMs up to a maximum of Rs 2,000 per card per day up to 18th November, 2016. The limit will be raised to Rs 4000 per day per card from 19th November 2016 onwards.
16. 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, that is up to 24 November 2016.
17. Can I deposit withdrawn notes through ATMs, Cash Deposit Machine or cash Recycler?
Yes, notes can be deposited in Cash Deposits machines / Cash Recyclers.
18. Can I make use of electronic (NEFT/RTGS /IMPS/ Internet Banking / Mobile banking etc) mode?
You can use NEFT/RTGS/IMPS/Internet Banking/Mobile Banking or any other electronic/ non-cash mode of payment.
19. How much time do I have to exchange the notes?
The scheme closes on 30 December 2016. The banknotes can be exchanged at branches of commercial banks, Regional Rural Banks, Urban Cooperative banks, State Cooperative Banks and RBI till 30th December 2016.
For those who are unable to exchange their Old High Denomination Banknotes on or before December 30, 2016, an opportunity will be given to them to do so at specified offices of the RBI, along with necessary documentation as may be specified by the Reserve Bank of India.
20. I am right now not in India, what should I do?
If you have OHD banknotes in India, you may authorise in writing enabling another person in India to deposit the notes into your bank account. The person so authorised has to come to the bank branch with the OHD banknotes, the authority letter given by you and a valid identity proof (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)
21. I am an NRI and hold NRO account, can the exchange value be deposited in my account?
Yes, you can deposit the OHD banknotes to your NRO account.
22. I am a foreign tourist, I have these notes. What should I do?
You can purchase foreign exchange equivalent to ?5000 using these OHD notes at airport exchange counters within 72 hours after the notification, provided you present proof of purchasing the OHD notes.
23. I have emergency needs of cash (hospitalisation, travel, life saving medicines) then what I should do?
You can use the OHD notes for paying for 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 after the notification.
24. What is proof of identity?
Valid Identity proof is any of the following: Aadhaar Card, Driving Licence, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its Staff.
25. Where can I get more information on this scheme?
Further information is available on www.rbi.org.in and GoI website.
26. If I have a problem, whom should I approach?
You may approach the control room of RBI by email. You can mail to email@example.com or call 022 22602201 / 022 22602944.
Hope this helps you to understand the exchange program better.