Prime Minister Narendra Modi on Tuesday night announced that Rs.500 and Rs.1000 currency notes would no longer be the legal tender from the mid night.
“ To break the grip of corruption and black money, we have decided that the five hundred rupee and thousand rupee currency notes presently in use will no longer be legal tender from midnight tonight, that is 8th November 2016” the Prime minister said while addressing the nation at 8 pm.
The Prime minister said the government has taken the decision with a view to curbing financing of terrorism through the proceeds of Fake Indian Currency Notes (FICN) and use of such funds for subversive activities such as espionage, smuggling of arms, drugs and other contrabands into India, and for eliminating black money.
He informed that these notes will not be acceptable for transactions from midnight onwards. Here are the things you must know.
1. New Series bank notes of Rs.500/- and Rs.2,000/- denominations will be introduced for circulation from 10th November, 2016.
2. Infusion of Rs.2,000/- bank notes will be monitored and regulated by RBI. Introduction of new series of banknotes which will be distinctly different from the current ones in terms of look, design, size and colour has been planned.
3.Old high denomination bank notes may be deposited by individuals/persons into their bank accounts and/or exchanged in bank branches or Issue Offices of RBI till the close of business hours on 30th December, 2016.
4.Old high denomination bank notes of aggregate value of Rs.4,000/- only or below held by a person can be exchanged by him/her at any bank branch or issue office of Reserve Bank of India for any denomination of bank notes having legal tender character.
5.This can be done provided a Requisition Slip as per format to be specified by RBI is presented with proof of identity and along with the Old High Denomination Bank Notes. Similar facilities will also be made available in post offices.
6.The limit of Rs.4,000/- for exchanging old high denomination bank notes at bank branches or at issue offices of Reserve Bank of India will be reviewed after 15 days and appropriate notification issued, as may be necessary.
7.There will not be any limit on the quantity or value of old high denomination bank notes to be credited to the account of the tenderer maintained with the bank, where the old high denomination bank notes are tendered.
8.However, in accounts where compliance with extant Know Your Customer (KYC) norms is not complete, a maximum value of Rs.50,000/- of old high denomination bank notes can be deposited.
9.The equivalent value of the old high denomination bank notes tendered can be credited to an account maintained by the tenderer at any bank in accordance with standard banking procedure and on production of valid proof of Identity.
10.The equivalent value of the old high denomination bank notes tendered can be credited to a third party account, provided specific authorisation therefor accorded by the said account holder is presented to the bank, following standard banking procedure and on production of valid proof of Identity of the person actually tendering.
11.Cash withdrawal from a bank account, over the counter will be restricted to Rs.10,000/- subject to an overall limit of Rs. 20,000/- in a week for the first fortnight, i.e., until the end of business hours on November 24, 2016.
12.There will be no restriction on the use of any non-cash method of operating the account which will include cheques, demand drafts, credit/debit cards, mobile wallets and electronic fund transfer mechanisms.
13.Withdrawal from ATMs would be restricted to Rs.2,000 per day per card up to November 18, 2016. The limit will be raised to Rs.4,000 per day per card from November 19, 2016 onwards.
14.For those who are unable to exchange their old high denomination bank notes or deposit the same in their bank accounts on or before December 30, 2016, an opportunity will be given to them to do so at specified offices of the RBI on later dates along with necessary documentation as may be specified by the Reserve Bank of India.
15. Banks and government treasuries will remain closed on 9th November, 2016. In addition, all ATMs, Cash Deposit Machines, Cash Recyclers and any other machine used for receipt and payment of cash will remain shut on 9th and 10th November, 2016.
16.The bank branches and government treasuries will function from 10th November, 2016.
17.To avoid inconvenience to the public for the first 72 Hours, old high denomination bank notes will continue to be accepted at
government hospitals, and pharmacies , railway ticketing counters, ticket counters of government, public sector undertaking buses and airline ticketing counters at airports; for purchases at consumer co-operative societies, at milk booths, at crematoria, burial grounds, at petrol, diesel,gas stations of public sector oil marketing companies and for arriving and departing passengers at international airports and for foreign tourists to exchange foreign currency at airports up to a specified amount.