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Rs 500, Rs 1000 Notes Banned: All You Need To Know

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In a move to curb black money, corruption and spread of counterfeit currency notes, Prime Minister Narendra Modi has announced demonetization of Rs 500, Rs 1000 notes. While Rs 500 and Rs 1000 rupee notes are now being withdrawn from circulation, Reserve Bank of India will circulate new Rs 500 and Rs 2000 notes, soon. Wondering what you will do with the Rs 500 and Rs 1000 notes which you are holding? Here is all you need to know about Rs 500 and Rs 1000 notes ban.

Rs 500, Rs 1000 Notes Banned

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Rs 500, Rs 1000 Notes Banned: All You Need To Know

Here is everything you need to know about government’s new scheme of scrapping currency notes in denominations of Rs 500 and Rs 1000:

Which Currency Notes Have Been Scrapped?

The legal tender character of bank notes in denominations of Rs 500 and Rs 1000 of the Mahatma Gandhi Series issued by the Reserve Bank of India till November 8, 2016 stands withdrawn. The old high denomination (OHD) notes cannot be used for transacting business and/or store of value for future usage.

Rs 500 and Rs 1000 notes “will not be legal tender” and will only be “worth the paper they are printed on,” said Modi. All the notes in lower denomination of Re 1, Rs 2, Rs 5, Rs 20, Rs 50 and Rs 100 as well as all coins will continue to be valid. Also, there will be no change in any other form of currency exchange, such as cheque, DD and payment via credit or debit cards.

Why Rs 500 and Rs 1000 Currency Notes Have Been Scrapped?

This scheme has been initiated to cease black money, corruption and spreading of fake currency.

Where Can I Exchange Rs 500, Rs 1000 Notes?

Starting November 10, 2016, the OHD notes can be exchanged for value at any of the 19 offices of the Reserve Bank of India or at any bank branch or at any Head Post Office or Sub-Post Office. You will get the same value of notes exchanged by credit in your bank account.

When Can I Exchange Rs 500, Rs 1000 Notes?

If you have Rs 500 or Rs 1000 currency notes, then you deposit them in your bank or a post office from November 10 till December 30, 2016.

Can I Get Cash For Deposited Old Notes?

You can get up to Rs 4000 per person per day in cash irrespective of the old currency deposited till November 24. Anything over and above that will credited to your bank accounts.

Do I Need To Carry An Identity Proof For Exchange Facility?

Yes. If you are visiting a bank branch or post office to avail the exchange facility, you must carry a your valid identity proof with you.

How Can I Use The Credit Value From My Bank Account?

The value credited to your bank account can be used by the issue of cheque or by electronic modes of transfer like NEFT, IMPS, RTGS, mobile banking and internet banking.

How Much Cash Can I Withdraw From ATM? 

ATMs will not be functional on November 9 to facilitate recalibration. You would be able to withdraw money from ATMs from November 11. The withdrawal limit will be capped to Rs 2000 per day for first few days till November 18. The limit will be increased to Rs 4000 from November 19.

How Much Cash Can I Withdraw From Bank Counter?

You can withdraw up to Rs 10,000 cash from bank accounts per day subject to an overall limit of Rs 20,000 a week starting November 9, 2016 till November 24, 2016. The limits will be reviewed after this.

What Will I Do If I Am In Urgent Need Of Money?

For urgent cash needs, you can exchange these notes for value up to Rs 4000 for cash at your bank branch. If you have more currency notes, the remaining amount will be credited to your bank account. If Rs 4000 are not enough, then you can use electronic money transfers as well as your credit cards or debit cards to make payments.

Our Take:

There is no denying that sudden scrapping to Rs 500 and Rs 1000 notes has created ruckus among people. But we welcome government’s bold move as we believe that this step will certainly help fight corruption and cease black money and counterfeit currency. It is a major step from the government to encourage people move towards cashless economy. We request all the citizens to cooperate and help making this step a success.

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Update: The cash exchange limit over the bank counter has been increased from Rs 4,000 to Rs 4,500. The ATM withdrawal limit has been from Rs 2,000 to Rs 2,500 per day. The weekly withdrawal limit from bank account has been increased from Rs 20,000 to Rs 24,000. Moreover, the cash withdrawal limit of Rs 10,000 per day from bank has also been removed.

Also Read: 6 Tips For Secure Banking Transactions

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