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Latest updates on the Demonetization of Rs 500 and Rs 1000 notes (updated on 31st December 2016)

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Here is the latest on the demonetization issue with detailed information on various limits as on 31st December 2016

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The official date for deposit of old notes is now over. Only a specific set of people can deposit old notes during the grace period of the next 6 months.

ATM withdrawal limit has been increased to Rs 4,500 per day per card from January 01, 2017. There will be not change in the weekly withdrawal limits. RBI has instructed banks that ATM disbursals be made in the denomination of Rs 500.

New Deposit Rules (with effect from 19th December 2016)

  • The old notes in excess of Rs 5000 into a bank account will be received for credit only once during the remaining period till December 30, 2016. The credit in such cases shall be afforded only after questioning the depositor, on record, in the presence of at least two officials of the bank, as to why this could not be deposited earlier and receiving a satisfactory explanation. The explanation should be kept on record to facilitate an audit trail at a later stage. An appropriate flag also should be raised to that effect so that no more such deposits are allowed. This will be applicable to only non KYC compliant customers.
  • Old notes of up to Rs 5000 in value received across the counter will allowed to be credited to bank accounts in the normal course until December 30, 2016. Even when deposits smaller than Rs 5000 are made in an account and such deposits taken together on cumulative basis exceed Rs 5000, they may be subject to the procedure to be followed in case of deposits above Rs 5000, with no more deposits being allowed thereafter until December 30, 2016. This will be applicable to only non KYC compliant customers.
  • It should also be ensured that full value of deposits of old notes in excess of Rs 5000 shall be credited to only KYC compliant accounts and if the accounts are not KYC compliant credits may be restricted up to Rs 50,000 subject to the conditions governing the conduct of such accounts.
  • The above restrictions shall not apply to tenders of old notes for the purpose of deposits under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016.
  • The equivalent value of old notes deposited may be credited to an account maintained by the depositor at any bank in accordance with standard banking procedure and on production of valid proof of Identity.
  • The equivalent value of old notes deposited may be credited to a third party account, provided specific authorisation accorded by the third party is presented to the bank, following standard banking procedure and on production of valid proof of identity of the person actually depositing, as indicated in Annex-5.

Quoting of PAN is mandatory in the following transactions

  • Deposit with a bank in cash exceeding Rs 50,000 in a single day
  • Purchase of bank drafts or pay orders or banker’s cheques from a bank in cash for an amount exceeding Rs 50,000 in a single day
  • A time deposit with a Bank or a Post Office
  • Cash deposits aggregating to Rs 2,50,000 or more during the period 09th November, 2016 to 30th December, 2016

Exchanges

  • The over the counter exchange facility has been discontinued from the midnight of 24th November, 2016 at all banks. 
  • The exchange of the old Rs 500 and Rs 1000 notes will continue to be available at the counters of the Reserve Bank up to the current limits of Rs 2000 per person.
  • Foreign citizens will be permitted to exchange foreign currency up to Rs. 5000 per week.  Necessary entry to this effect will be made in their passports. This will be applicable up to 15th December 2016.
  • The limit has been decreased from the existing Rs 4,500 to Rs 2,000. The reduced limit will be applicable from 18th November, 2016.
  • Separate queues will be arranged for Senior Citizens and Divyang persons, customers with accounts in the Bank and for customers for exchange of notes.

Cash Withdrawal at Bank Branches

  • The weekly limit of Rs 20,000 for withdrawal from Bank accounts has been increased to Rs 24,000. The limit of Rs 10,000 per day has been removed.
  • RBI has issued a notification to allow withdrawals of deposits made in the valid notes (including the new notes) on or after November 29, 2016 beyond the current limits. The notification states that available higher denominations bank notes of ₹ 2000 and ₹ 500 are to be issued for such withdrawals as far as possible. But no higher limit has been set for such withdrawals. It is also unclear if this facility will be available to only those who make deposits with the valid notes.
  • Business entities having Current Accounts which are operational for last three months or more will be allowed to draw Rs 50,000 per week.  This can be done in a single transaction or multiple transactions.
  • District Central Cooperative Banks (DCCBs) will also facilitate withdrawals with the same limits as normal banks.
  • Restrictions on PMJDY accounts: Fully KYC compliant account holders will be allowed to withdraw Rs 10,000 from their account, in a month. The branch managers may allow further withdrawals beyond this limit  within the current applicable limits only after ascertaining the genuineness of such withdrawals and duly documenting the same on bank’s record.
  • Limited or Non KYC compliant account holders will be allowed to withdraw Rs 5,000 per month within the overall ceiling of Rs 10,000.

ATM Withdrawals

  • Withdrawal limit increased to Rs 2,500 per day for ATMs that are recalibrated. This will enable dispensing of lower denomination currency notes for about ₹ 500/- per withdrawal.
  • Micro ATMs will be deployed to dispense cash against Debit/Credit cards up to the cash limits applicable for ATMs.
  • ATMs which are yet to be recalibrated, will continue to dispense ₹ 2000/- till they are recalibrated.

Special Provisions for Farmers & Traders buying Agricultural Produce

  • Farmers would be permitted to withdraw up to Rs 25,000 per week in cash from their KYC compliant accounts only. These cash withdrawals would be subject to the normal loan limits and conditions. This facility will also apply to the Kisan Credit Cards (KCC).
  • Farmers receiving payments into their bank accounts through cheque or other electronic means for selling their produce, will be permitted to withdraw up to Rs 25,000 per week in cash. But these accounts will have to be KYC compliant.
  • Farmers can purchase seeds with the old high denomination bank notes of Rs.500 from the Centres, Units or Outlets belonging to the Central or State Governments, Public Sector Undertakings, National or State Seeds Corporations, Central or State Agricultural Universities and the Indian Council of Agricultural Research (ICAR), on production of proof of identity.
  • Traders registered with APMC markets/mandis will be permitted to withdraw up to Rs 50,000 per week in cash from their KYC compliant accounts as in the case of business entities.
  • The last date for payment of crop insurance premium has been extended by 15 days

Special Provisions for Weddings

  • Families celebrating weddings will be permitted to draw up to Rs 2,50,000  in cash from their own KYC compliant bank accounts. The amounts can be drawn only by either of the parents or the person getting married. Only one of them will be permitted to draw this amount. This limit of Rs 2,50,000 will apply separately to the girl’s family and the boy’s family. The person drawing such amount has to furnish the PAN details. Further, a self-declaration will have to be submitted by the person to the effect that only one person from his/her family is drawing the amount.
  • The application for withdrawal has to accompanies by the following documents
    • An application form as per the annexure
    • Evidence of the wedding, including the invitation card, copies of receipts for advance payments already made, such as Marriage hall booking, advance payments to caterers, etc.
    • A detailed list of persons to whom the cash withdrawn is proposed to be paid, together with a declaration from such persons that they do not have a bank account,where the amount proposed to be paid is ₹ 10,000/- or more. The list should indicate the purpose for which the proposed payments are being made

Special Provisions for Group C & Other Employees

  • Central Government employees up to Group `C’ including equivalent levels in the Defence and Para Military Forces, Railways and Central Public Sector Enterprises will be given an option to draw salary advance up to Rs 10,000 in cash. This amount will be adjusted in their salary for November, 2016.

 Using the Banking Correspondents Network (BCs) for rural areas

  • Banks will increase the cash holding limit of BCs to at least Rs 50,000 each.  Banks will also allow higher limits in appropriate cases.
  • Banks will replenish the cash with BCs multiple times in a day as per requirement of the BCs.
  • The 1.2 lakh BCs and 1.3 lakh branch Post Offices, a total number of 2.5 lakh points in rural areas will be available to disburse cash and facilitate cash withdrawals from Bank Accounts.

e-Payments

  • All Central Government Departments and Public Sector Enterprises are being instructed to use the method of e-payments to the maximum extent possible.
  • RBI has advised National Payments Corporation of India (NPCI) to waive its transaction charges on transactions settled through National Financial Switch(NFS) till 31st December, 2016.
  •  Banks are also being advised to waive similar charges currently levied by them.

 Old Notes will be accepted for the following till 15th December 2016

The old Rs 500 notes will be accepted till the midnight of 15th December 2016 for the following transactions/payments. It has to be noted that the old Rs 1000 notes won’t be accepted in these places. The government has also notified certain changes the earlier list. Purchase of Airline tickets & petrol/diesel with the old notes will not be possible from 03rd December.

Apart from these

  • Exemption of Toll fees on National Highways (NH) has been extended till 02nd December. The old Rs 500 notes will be accepted at toll plazas from 03rd to 15th December 2016. It has to be noted that the old Rs 500 notes will be accepted only be for purchasing FASTags and for making toll payments of more than Rs 200.
  • Parking charges at airports have been suspended till 21st November.
  • Old Rs 500 notes can be used at railway ticketing counters, ticket counters of Government or Public Sector Undertakings buses for purchase of tickets only till 10th December 2016
  • Old Rs 500 notes can be used for making payments to catering services on board, during travel by rail only till 10th December
  • Old Rs 500 notes can be used for making payments for purchasing tickets for travel by suburban and metro rail services only till 10th December

exemptions-list-01st-dec-2016

  • Payment of School fees up to Rs. 2000 per student in Central Government, State Government, Municipality and local body schools.
  • Payment of fees in Central or State Government colleges
  • Payments towards pre paid mobile top-up to a limit of Rs. 500 per top-up
  • Purchase from Consumer Cooperative Stores will be limited to Rs. 5000 at a time
  • Payment of current and arrear dues to utilities will be limited to only water and electricity.  This facility will continue to be available only for individuals and households

Others

  • Pensioners are required to submit Annual Life Certificate during the month of November.  This time limit has been extended up to 15th January, 2017.
  • Banks are advised to take appropriate steps to meet the likely demand for cash by government employees & pensioners. They are advised to
    • Ensure adequate cash availability for taking care of the requirements of pensioners
    • Ensure adequate supply at the military outposts for the cash requirements of the Armed Forces personnel.

One may approach the control room of RBI by email or on Telephone Nos 022-22602201 or 022-22602944.

Featured Image: www.rbi.org.in

 

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About Author

Rakesh has been working on issues related to Right to Information (RTI) for a decade. He is a Data/Information enthusiast & passionate about Governance/Policy issues.

36 Comments

  1. gagandeep singh on

    I have h queryy that .. 1000 rs notes will be accepted after 15 dec in bank for deposit or not ??

    • yes, 1000 rupee notes will be accepted in banks for deposit upto 30th Dec, 2016. Its the only way to utilize your 1000 rupee note now, other than that, it not valid anywhere for anything now.

  2. Can i withdraw money using my cheque the same day after depositing the old 500 and 1000 note in my account? Please help

    • Yes Carol. Upto Rs 24000 can be withdrawn for the week at the bank from your a/c and it has no connection to whether you make a deposit or not.

  3. SHOBY PALIAKKARA JOSE on

    How much of the demonetised 1000 and 500 Re.notes have been deposited back into the Banking System as of date 22/12/2016.

  4. can i deposit the old 500 rupees notes after Dec 30th 2016 as currently i am working in Belgium and cannot send money to India before 30th Dec 2016?
    thanks in advance for the feedback

    • yes you can deposit through CDM machine but most of CDM machine are not accepting or working now

    • You can deposit old notes only if either you are an NRI or were living in abroad during demonetisation otherwise RBI are not accepting old notes from the other people. To exchange your old notes in large amount contact – alexkart429@gmail.com

  5. if any person having old notes then they depsit the note to rbi after 31 dec 2016 or not
    if he can deposit then tell me the last date of depositing the old note

    • rajeev saxena on

      Well RBI and government has announced before the date for depositing old notes at RBI counter tii 31st March but now they are refusing to accept. To exchange your old notes in large amount contact – alexkart429@gmail.com

      • I have not deposits my old note in bank due to my wife hospitalised, how to I deposits/exchange my money in to bank.

        • rajeev saxena on

          Jonty well old notes are not accepting by any bank not even in RBI right now unless you are an NRI or were living in abroad during demonetisation. We can help you to exchange your old notes in large amount if interested contact – alexkart429@gmail.com

  6. dr.dahyabhai maganbhai patel on

    I am in USA -From 2nd november to 9th feb 2017 Ihave less than 50,000RS.can i deposit it in RBI ahmedabad.as it was repported on 8th novenber.i am from vadodara.

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  8. sir m india m rehta hu in delhi mere pas khuch pese rahe gaye h old currency 2000 rupees h 500 k 4 note h m unhe kese exchange karwa sakta hu koi rasta batye please

    • Mr. Chandermani, you can only exchange your money on RBI counter but only if you are an NRI or were in abroad during the demonstrations we just help to exchange large amount for more help contact – alexkart429@gmail.com

  9. Biswanath Dawn, 9830542678 on

    Prime Minister of a vast and colorful nation, having large democracy in the world, promised in his peach on 08.11.16 that the person who will failed to change old 500/- & 1000/- notes will get chance to replace the same at RBI in some counter up till end of March 2017. But reality is that RBI has opposed the same and as such we the Retired and Sr. Citizens are getting trouble as we are still having very small quantity of 500/-notes that were untraceable up till 30.12.16 because of our age (70). I got 2 notes of 500/- like to replace which I found in my reading book on 15.01.17 which were misplaced and untraceable. I had great pain but ultimately I got it. It is some thing to me. Can any body help in this regard?

    • Biswanath Dawn, 9830542678 on

      Prime Minister of a vast and colorful nation, having large democracy in the world, promised in his speech on 08.11.16 bravely that the person who will failed to change old 500/- & 1000/- notes will get chance to replace the same at RBI only in some counter up till end of March 2017. But reality is that RBI has opposed the same and as such we the Retired and Sr. Citizens are getting trouble as we are still having very small quantity of 500/-notes that were untraceable up till 30.12.16 because of our age (70). I got 2 notes of 500/- like to replace which I found inside my reading book on 15.01.17 that was misplaced and untraceable since October, 16 (during Durga Puja). I had great pain for it but ultimately I got it. It is some thing to me. Can any body help in this regard when a dynamic Prime Minister of India keeping silent in this regard after knowing the attitude of RBI?……..Biswanath Dawn, Kolkata 700005,M.No. 9830542678

      • Mr. Biswanath, you can exchange money at RBI Counter with declaration and valid reason that why didn’t you deposited before. We help you to exchange your old notes in large amount contact, alexkart429@gmail.com

  10. while shifting my house accidently i found Rs 3000 Today In month feb-17 & all are in 500 notes..now Bhubaneswar RBI denied to exchnage my Notes..How can i Exchange My money now..i need it very badly..

    • Mr. Dinesh, you can only exchange your old notes at RBI counter with declaration and valid reason that why didn’t you deposited before well currently RBI exchanging old notes for NRI or the people who were not in the country during the demonetisation. We can help you to exchange your old notes in large amount contact, ‘alexkart429@gmail.com’

    • Well RBI only exchanging old notes of NRI for now so there is no any chance to exchange your money but you can check it at RBI counter. We can help you to exchange your old notes in large amount of money contact, alexkart429@gmail.com

  11. i have arelative abroad who has sent Rs 5000 in old currency . he was unable to send earlier as no one happened to be cumin here earlier. i am told i can deposit till 31st march. kindly advise what papers needed

    • Sunisha, you can only exchange or deposit if you are an NRI with declaration and valid reason that why didn’t you deposited before. We can help you to exchange your old notes in large amount of money contact, alexkart429@gmail.com

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