With a view to curbing black money and counterfeiting, the Prime Minister yesterday announced that effective midnight on 08-Nov-16, the existing ₹500 and ₹1000 currency notes will no longer be treated as legal tender. How does this impact you? Read on…
What happens now?
– Your existing ₹500 and ₹1000 notes are invalid w.e.f midnight on 08-Nov-16
– For the next 72 hours, only emergency and essential services will accept old ₹500 and ₹2000 notes
– These services are:
– Government hospitals and pharmacies (with a valid prescription)
– Government run bus services, railway ticket counters
– Domestic and International airport counters
– PSU authorised petrol and diesel stations
– Central Government authorised consumer co-operative stores
– State Government authorised milk booths
– Crematoriums and burial grounds
* Toll plazas on highways to accept the discontinued ₹500 and ₹1000 notes till midnight on 11-Nov-16. Further update: no toll tax will be levied on national highways till midnight on 11-Nov-16.
* The Maharashtra Govt has confirmed the old notes will be acceptable for payment of electricity bill, water bill, property tax or any kind of Government dues till midnight on 11-Nov-16.
* The Central government also announced the inclusion of private and government pharmacies, LPG cylinder distributors, ASI monuments, metro stations, water and electricity bills that will accept these old notes till midnight on 11-Nov-16
* Old notes can be used to make payment of fees, charges, taxes, penalties to Central & State Govt depts and local bodies till 11-Nov-16
* Power distribution companies to accept payments in old notes till midnight on 11-Nov-16
* As per DGCA order, airlines confirm that tickets bought with old ₹500 and ₹1000 notes are strictly non-refundable, so no jugaad 😛
What happens next?
– These ₹500 and ₹1000 notes can be exchanged at offices of the RBI, banks and post offices till 30-Dec-16
– You will get the complete value for the entire volume of notes tendered by you
– Irrespective of volume, the per person limit is set at ₹4000 (will be reviewed later)
– Exchange of notes upto ₹4000 can be done at any bank or post office
– You have to carry a valid ID proof (with a photocopy) to exchange your old notes
– Amounts above ₹4000 will be receivable as a credit into your bank account
– You can visit your home branch or any branch of your bank
– At banks where you don’t have an account, give ID proof and account details for electronic transfer to your account
– If you’re unable to visit the bank in person, you can send someone with a written authorisation and ID proof
– This can be done from 10-Nov onwards, as 09-Nov is a bank holiday
What happens later?
Oh btw, there’s no GPS chip in these notes as you may have read about on WhatsApp 😛
– ATM withdrawal limit is ₹2000 per card per day upto 18-Nov-16 and will be raised to ₹4000 per card per day after 19-Nov-16
– Withdrawal via cheque allowed upto ₹10000 per day and ₹20000 per week (including from ATMs) till 24-Nov-16
– No change in non-cash payment modes: Cheque, Draft, NEFT, IMPS, RTGS, Credit/Debit Cards, Mobile Wallets
– After 30-Dec-16, these notes can be exchanged only at RBI offices
Banks will remain open this Saturday, 12-Nov and Sunday, 13-Nov as per a RBI directive
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