Recently, Government has demonetized 500 and 1000 denomination notes in India with effective 9 November 2016. This decision was taken due to the increment in money laundering in India. So this simply means that your rs. 500 or rs. 1000 are no longer valid to make market purchase or exchange for goods and services.
In addition, RBI has also introduced new 2000 rupees note w/e 11th November 2016. This new rupee note looks pretty decent.
The recent act by the Indian government is a revolution in itself. Not only this act will bring black money owners but it will help a lot of poor and needy people financially. I will decrease corruption, terrorism, and counterfeit currency.
New Indian Rupee/Currency Exchange Policy
|Old Notes Exchange||Rs. 4000||10th Nov - 24th Nov|
|Bank Note Withdrawal||Rs. 10000 Daily||10th Nov Onwards|
|Bank Note Withdrawal||Rs. 20000 Weekly||10th Nov Onwards|
|ATM Note Withdrawal||Rs. 2000 Daily||10th Nov - 18th Nov|
|ATM Note Withdrawal||Rs. 4000 Daily||19th Nov Onwards|
|Old Note Deposit||No Limit||10th Nov - 30th Dec|
|Cashless Online Shopping||No Limit||8th Nov Onwards|
Important Rules To Follow By RBI
- Deposit all old notes of 500 and 1000 denomination to the bank and get new series notes in exchange.
- Maximum rs.4000 can be exchanged per day, special bank team will be organized for overtime work.
- You can withdrawal a total of rs.10,000 daily and rs.20,000 weekly from banks or ATM combined.
- Exchange all your old 500 rupees note and 1000 rupees notes before 30th December 2016.
- ATM operations closure on 9th and 10th November and same for all Banks in India.
- Only rs.2000, rs.100, rs.50, rs.10, rs.5, rs.2, rs.1 and coins can be used to purchase goods and services until you get new 500 and 1000 series bank notes.
Why Government Banned/Demonetized 500 and 1000 Notes?
Okay, let’s understand why the government has banned old notes?
The answer is quite simple i.e to stop money laundering and black money. When higher currency such as rs.500 and rs.1000 will be demonetized then such notes become useless.
This will really hurt all money launders in India as they can’t use that money and all will be wasted. That is why Indian government has only picked higher value notes.
I personally feel that this is a great move by government and we should respect it. “Though the instant decision may come as a setback to those who have marriages going on, to the farmers and marginal traders who were undergoing financial transaction and were in immediate need of money, color,” said Virbhadra Singh.
New 500 Rupees Note First Look
The new ₹ 500 banknotes are different from the earlier specified bank note (SBN) tricolor, size, theme, location of security features and design elements; the principal features are –
- The size is 66mm x150mm
- The color is stone gray
- Red Fort-an image of Indian heritage site with Indian flag on the reverse
The banknote also has features (intaglio printing of Mahatma Gandhi portrait, Ashoka Pillar emblem, bleed lines, a circle with ₹ 500 in the right, and the identification mark) which enable the visually impaired person to identify the denomination.
Read More on www.rbi.org.in
How To Replace My 500 and 1000 Notes From Banks?
- First of all, collect your valid Ids proof like Aadhar card, Driving Licence or PAN Card.
- Make sure you take only up to rs.4000 to exchange with your financial institution.
- After that, visit your nearest Post office or your bank account
- The bank executives will validate your identity and give you cash in exchange
- You can only receive rs. 2000, rs. 100 rs. 50, rs. 10 or rs 5 denomination rupees.
- This process will be valid till only 3oth of December 2016. So hurry up
What If I Unable to Exchange My Older 500 or 1000 Notes?
Let’s take an example, If you have 500 or 1000 note and you didn’t exchange it before the deadline then you have another chance to do the same. All you need to go to your nearest RBI Head or corporate office. Please make sure you bring your valid identity proof and a proper reason. Finally, explain to them why you were unable to exchange your older currency.
Finally, if they approve your excuse then you will get exact same amount with the latest series notes.
Where I Can Use My Old Rs. 500, Rs. 1000 Notes Between 9th to 30th December?
You can still exchange your old 500 and 1000 denomination notes on below places or institutions.
- Government hospitals ( only to clear your dues or pay bills: No money exchange)
- Railway tickets booking counters ( any railway station across nationwide )
- Government buses counters ( only major bus stands )
- Airline ticket counters on any airport
- Petrol diesel and gas station authorized public sector oil companies ( such as Indian oil, Hindustan Petroleum)
- Consumers authorities approved by central or state government ( for eg. canteens )
- Milk Booths authorized by state government
- Crematoria and burial ground
I Hold No Bank Account, What Should I Do?
Okay, let’s assume that you have no bank account then no issue. Just take your cash with you and visit any RBI approved financial institution such as State bank of India, Axis bank, PNB etc. You can simply exchange your old notes for the new one.
Will I Get Full Refund With New Notes?
Yes, you will receive the equal value of New banknotes with the exchange. Suppose if you have rs.3500 old rupee note then you will get the same amount of new rupee note.
I am an NRI and Live Outside India, How to Tackle this Situation?
So if you are living outside India the ask for your relatives help to exchange your older notes. You actually don’t need any bank account for that. Anyone can do the job for you but only 4000 INR per day can be exchanged.
How many amounts I Can Withdrawal From Bank?
During 11th November to 30th December 2016, you can withdrawal rs. 10,000 from bank per day. However, in every week the cash out amount should not be exceeded rs.20,000. If you want to transact more amount then you can use online transactions method such as NEFT, RTGS etc.
Can I Make Online Transaction with Cashless Cards?
Yes, Your online transaction will remain absolutely 100% functional. You can make payments from your net banking account for EFT fund transfer. You can use your credit or debit cards to make online shopping purchase normally. The only problem is that you can’t select Cash on Delivery if you don’t have rs.100 notes available.