You must be all aware of the fresh announcement by Prime Minister Narendra Modi, which says that all Rs.500 and Rs.1,000 notes have been banned since Tuesday, November 8, 2016.
This step has been taken by the Modi government to combat corruption, stop the rotation of counterfeit notes which aid terror activities across the border and to flush out all black money in the market. But obviously, the decision would affect everyone including the general public.
But you need not worry. Now that the Rs.500 and Rs.1000 notes have been scrapped, here is what you need to do with the old notes and all that you need to know.
Deposit old notes at your nearest bank or post office accounts without any limit from 10th November to 30th December. However, you can only withdraw Rs.10,000 per day and Rs.20,000 per week. This limit on withdrawals will be increased in the coming days.
Those who are unable to deposit or exchange their notes till December 30 will get another chance to do so till March 31, 2017. After December 30, you can deposit the old notes of Rs.500 and Rs.1,000 with the Reserve Bank at specified RBI offices after furnishing proper declaration. You can deposit them here till March 2017.
You can also exchange your Rs.500 and Rs.1000 notes for lower denomination notes at banks and post offices. The exchange limit has been kept as Rs.4,000 per day and you can only exchange them till 24th November, 2016. For exchanging notes, you will need to show a valid government identity card such as your Aadhaar card, Voter ID card or PAN card.
Please note that banks will remain closed for the public on 9th November so as to get some time to cope up with the new directive raised by the government of India.
However, you can very easily perform any kind on non-cash payments by cheques, DDs, debit cards, credit cards and electronic fund transfer.
ATMs will not work on November 9 and in some places on November 10 as well. From 11th November you can withdraw money from ATMs that will not dispense the old Rs.500 and Rs.1,000 notes. During the initial days you shall be allowed to withdraw up to Rs.2,000 per card per day. This limit will be increased to Rs.4,000 per card per day soon.
You can also use the old notes till 11th November at the following government authorized places and institutions, which will accept the Rs.500 and Rs.1,000 notes for payment till 11th November:
1. Government hospitals
2. Railway, airline and government bus ticket booking counters
3. Petrol, diesel and gas stations authorised by public sector oil companies
4. Consumer co-operative stores run by the state or central governments
5. Milk booths authorized by state governments
6. Crematoriums and burial grounds
RBI will issue new currency notes of Rs.500 and Rs.2000 with a fresh new design from November 10 onwards. Here is how the new notes will look like.
Tourists can change their Rs.500 and Rs.1,000 notes at the airports. Arrangements have been made for exchanging notes at airports for travellers who are entering or leaving the country.
If you are going to the bank with Rs.500 and Rs.1,000 notes beware as the Income Tax Department is watching you. Be smart as:
1. The Income Tax department will keep a check on all individuals who are found exchanging a cash amount that exceeds Rs.2 lakh.
2. The Income Tax Department wants to make Indians more tax compliant so as to generate higher revenues for the government. This is why the IT department has been asked to keep record of every individual, their PAN card details and tally it with tax filing.
3. According to the details collected and tallied, the department will impose penalty on people, which could vary between 30-120% depending on the source of income.
While the notes could be used, deposited and exchanged, there is one thing you’ll all have to face at every step and that is the crowds. No matter you visit the petrol pumps, banks, post offices or ATMs be prepared to stand in long queues for hours before you can actually get your tanks filled with petrol or your money exchanged at the banks and post offices or the new currency notes withdrew from ATMs. Long queues and crowds are waiting for you everywhere!
Have a good day Jaipurites!