Exchange Of 500 and 1000 Currency Notes – Tension Free / Simplified

Posted: 9:38 am, November 11, 2016 by manish mewara

Indian Currency Notes of Rs. 500 and Rs. 1000 have been withdrawn in India. Please do not worry; as you can easily exchange the old currency notes. Currency Exchange Procedure has been published in Hindi as per interview of CA K. C. Moondra in a question – answer format which is being reproduced hereunder in English –

(A) In relation to exchange of 500 and 1000 Currency Notes

From when Rs. 500 and Rs. 1000 notes will be treated to be withdrawn and what is the meaning of withdrawn?

KCM – Rs. 500 and Rs. 1000 currency notes have been withdrawn from 8^th November, 2016 midnight 12. This means that these notes cannot be used for barter as their powers of exchange have been ended.

Are Rs. 500 and Rs. 1000 notes turned to scrap after their withdrawal by Government?

KCM – Except for few specified transactions these notes cannot be used for any other exchange or transactions, so their value is zero and they are as good as scrap. But as per the promise printed on these currency notes, Government of India shall reimburse to you full value of Rs. 500 and Rs. 1000 currency notes and arrangements have been made for it.

Will I get full or less value for old / withdrawn currency notes?

KCM – You will get 100% value in cash or by credit to your bank account. No deduction will be made i.e. Rs. 1000/- against Rs. 1000/-

Will I get the full value of deposited old / withdrawn currency notes in cash?

KCM – No, from deposited old / withdrawn currency notes, you will get only Rs. 4000 in cash. The remaining amount shall be credited in your bank account. For example if you deposit Rs. 1 Lakh old / withdrawn currency notes, then you will get Rs. 4000 in cash and remaining Rs. 96000 shall be credited to your bank account. (For credits above Rs. 50000/- your K.Y.C. norms should be complete and you should also have a PAN Card)

What should I do if I do not have a PAN Card but have old currency notes more than Rs. 4000?

KCM – In this case you should immediately apply for PAN Card. You should also open a bank account in case you do not have one. For PAN Card application, you will have to pay requisite fees in denomination of small currency notes.

Rs. 4000 is a very less amount as per my needs. What should I do in this case?

KCM – You will get only Rs. 4000/- in cash. However you can also meet your expenses by paying through Cheque, Internet Banking and Credit / Debit Card.

I do not have any bank account and I want to exchange Rs. 1 lakh, what should I do?

KCM – You will have to open a bank account in bank of your choice. Moreover value of old currency notes above Rs. 4000 shall be credited to your bank account (in this case Rs. 96000 shall be credited to bank account). The amount credited to bank account shall be available for use through cheque, internet banking and credit / debit card.

I have a joint Bank Account with my father. In this situation how much cash can be exchanged? Will we both get Rs. 4000 i.e. total Rs. 8000 cash against exchange of old notes?

KCM – No. The scheme provides for payment of cash of Rs. 4000 against exchange of old currency notes per account. So in case of joint bank account you shall receive only Rs. 4000 cash and any amount over Rs. 4000 shall be deposited in your joint bank account which will be available for use through cheque, internet banking and credit / debit card. However, individually both can get exchange of Rs. 4,000/- each.

Where Can I exchange old / withdrawn currency notes?

KCM – Upto Rs. 4000/- can be exchanged at any Issue Offices of RBI and branches of commercial banks/RRBS/Urban Co-op Banks/State Co-op banks or at any Head Post Office or Sub-Post Office. Any amount above Rs. 4000/- will be credited to your Bank Account.

Need I go to my bank branch only?

KCM – No. You can exchange upto Rs. 4000/- in cash from any branch of any bank or Head / Sub Post Office and any amount in excess of Rs. 4000/- will be credited to your bank account only. For this purpose please carry your valid ID Proof and Bank Account details. For instance if you have an account with State Bank of India (SBI), you can get old currency note exchanged at your branch or any branch of SBI or any other Bank / Post Office. Upto Rs. 4000 you will receive in cash and amount over Rs. 4000 will be credited to your SBI account.

Presently where I am, there is no branch of my bank. But there are branches of other Banks where I do not have an account. Can I exchange old currency notes at such other bank branches?

KCM – Yes. You will have to provide valid I D Proof and your bank account details for this purpose if amount to be exchanged exceeds Rs. 4000/-. If it is not possible for you to get your bank account details for any reason the best option will be to open a new bank account where ever you are present.

Should I go to bank personally or can I send the notes through my representative?

KCM – Your presence is not mandatory but preferable. You can send your representative with an Authority letter and self-attested valid I D Proof of the representative and yourself to get the notes exchanged.

Can I deposit withdrawn notes through ATMs, Cash Deposit Machine or cash Recycler? What is the limit of such deposit?
KCM – Yes, old notes can be deposited through ATMs, Cash Deposit Machines or Cash Recyclers upto the limit of the machine.

How much time do I have to exchange the notes?

KCM – The scheme closes on 30th December 2016. The old currency notes can be exchanged at branches of commercial banks, Regional Rural Banks, Urban Cooperative banks, State Cooperative Banks, RBI and head / sub post office till 30 December, 2016. For those who are unable to exchange their Old notes on or before 30 December, 2016, an opportunity will be given to them to do so at specified offices of the RBI, along with necessary documentation as may be specified by the Reserve Bank of India.

I am right now not in India. What should I do?

KCM – If you have Old notes in India, you may authorize in writing enabling another person in India to deposit the notes into your bank account. The person so authorized has to come to the bank branch with the Old notes, the authority letter given by you and self-attested valid identity proof of him and you.

What are valid I D Proof for this purpose?

KCM – Valid Identity proof is any of the following: Aadhaar Card, Driving License, Voter ID Card, Pass Port, NREGA Card, PAN Card, and Identity Card Issued by Government Department / Public Sector Unit to its Staff. Any documents other than mentioned above will not be a valid I D Proof.

I am an NRI and hold NRO account, can the exchange value be deposited in my account?

KCM – Yes, you can do so.

In what emergency conditions or services old notes are being accepted and till when they will be accepted?

KCM – Old notes will be accepted upto 14^th November, 2016 midnight at –

Government Hospitals and Medical stores in Government Hospitals.
Railway Ticketing Counters
or Public Sector Bus Undertaking
Airline Ticketing Counters at Airport
For purchases at consumer co-operative societies
Co-operative milk booths
Crematoria/burial grounds,
Petrol/diesel/gas stations of Public Sector Oil Marketing Companies
For arriving and departing passengers at international airports and for foreign tourists to exchange foreign currency at airports up to Rs. 5000/-.
Medical Counters on Doctor’s prescription with I.D.Proof.
Toll Plaza.
Gas Cylinders
Railway Catering Services.
Metro Tickets
Entree Tickets of Archaeological Survey of India.
All kinds of Tax & Penalties.
Water & Electricity Bills.

Is there any other formality for exchange of Old / Withdrawn Notes?

KCM – A new Form (Annexure 5) is to be filled and submitted along with the notes to be exchanged at Bank / Post Office.

What preparations I should do before going to bank for exchange of old notes?

Obtain / download a copy of New Form (Annexure 5)
Fill and sign New Form (Annexure 5)
New Form (Annexure 5) is to be filled in English and Capital Letters
Self-attested copies of Valid ID Proof must be taken along.

(B) In relation to Bank Transactions from 10^th November, 2016:

What amount can I withdraw from ATM?

KCM – On each Card you can withdraw upto Rs. 2000/- per day till 18th Nov 2016. From 19th Nov 2016 the withdrawal can be made upto Rs. 4000/-. However, withdrawal shall be limited to Rs. 20000/- in a week.

I have 2 or more Debit / Credit cards. So can I withdraw Rs. 2000 from each card on the same day?

KCM – Yes. You can withdraw Rs. 2000 from each debit / credit card on the same day.

Can I withdraw cash from my Bank Account using cheque or withdrawal slip? If yes then please mention the limits if any?

KCM – Yes. Cash withdrawal from a bank account, over the counter i.e. using a cheque or withdrawal slip will be restricted to Rs.10,000/- subject to an overall limit of Rs. 20,000/- (including withdrawal from ATM) in a week for the first fortnight, i.e., until the end of business hours on 24^th Nov, 2016. These limits shall be reviewed after 24^th Nov 2016.

Can I make online transfers / payments from my Bank Account? If yes then please mention the limits if any?

KCM – Yes. You can make online transfers / payments from your Bank Account and there is no limit on such transactions.

I have a credit card. Can I withdraw Rs. 2000 from my credit card also?

KCM – Yes, you can withdraw cash on your credit card also.

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Manish Mewara from Jaipur.